NORTH BETHESDA, Md. - Choice Hotels (NYSE:CHH) International, Inc. (NYSE:CHH) reported better-than-expected third quarter earnings on Monday, driven by record revenues and strong growth in its global hotel pipeline. The company also raised its full-year 2024 guidance.
Choice Hotels posted adjusted earnings per share of $2.23 for the third quarter, surpassing analyst estimates of $1.92. This represents a 23% increase compared to the same period last year. Total revenues reached a quarterly record of $428 million, up 1% YoY, though slightly below the consensus estimate of $432.62 million.
The company's net income rose 15% to $105.7 million for the quarter. Adjusted EBITDA grew 14% to a record $177.6 million.
"Choice Hotels generated another quarter of record financial performance, demonstrating the successful execution of our growth strategy and giving us the confidence to raise our full-year guidance," said Patrick Pacious, President and CEO.
The company's global pipeline expanded 11% YoY to over 110,000 rooms as of September 30, with a 54% increase in conversion rooms. Global hotel openings for the quarter jumped 75% compared to the same period last year.
Domestic RevPAR decreased 250 basis points for the quarter compared to the same period in 2023. However, domestic occupancy levels improved by 80 basis points from the second quarter of 2024.
Choice Hotels raised its full-year 2024 EPS guidance to $6.70-$6.87, above the analyst consensus of $6.49. The company also increased its outlook for net income, adjusted EBITDA, and RevPAR growth.
The company repurchased 2.9 million shares for $352.9 million year-to-date through September 30, representing over 6% of its market capitalization at the beginning of the year.
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