Choice Hotels International Inc. reported a quarterly revenue record for the second quarter of 2023.
“Choice Hotels generated record revenues, fueled by our best-in-class hotel conversion and reservation-delivery capabilities as well as our success in integrating Radisson Hotels Americas ahead of schedule,” said Patrick Pacious, president/CEO, Choice Hotels. “The exceptional speed with which we are able to move conversion projects through the pipeline has driven impressive revenue-intense hotel openings in the first half of 2023 and further strengthened our award-winning brand portfolio, reinforcing our confidence in the company’s ability to drive significant growth in 2023 and beyond.”
Second-quarter highlights include:
- Total revenues reached $427.4 million for second-quarter 2023, a quarterly record and a 16% increase compared to the same period of 2022.
- Net income reached $84.7 million for second-quarter 2023, representing diluted earnings per share (EPS) of $1.65. As a result of one-time items, including Radisson Hotels Americas integration costs and the timing of net reimbursable expenses, net income and diluted EPS were 20% and 13% lower, respectively, for second-quarter 2023 compared to the same period of 2022.
- Second-quarter 2023 adjusted net income increased 12% to $89.1 million compared to the same period of 2022 and the company’s adjusted diluted EPS increased 22% to $1.75 compared to the same period of 2022.
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for second-quarter 2023 reached $153.1 million, a quarterly record and an 18% increase compared to the same period of 2022.
- The company’s domestic effective royalty rate for both the three-month and six-month periods ended June 30 increased 6 basis points to 4.99% compared to the respective 2022 periods.
- The company’s Cambria Hotels and WoodSpring Suites brands were ranked number one in guest satisfaction among upscale and economy extended-stay hotel brands, respectively, in the J.D. Power 2023 North America Hotel Guest Satisfaction Index Study.
- The company’s global pipeline as of June 30 increased 10% to more than 93,000 rooms. The company’s global rooms pipeline for conversion hotels as of June 30 increased 14% from June 30, 2022 and 25% from March 31. The company’s domestic rooms pipeline for conversion hotels as of June 30 increased 10% from June 30, 2022 and 28% from March 31.
- Choice achieved $80 million of annual recurring synergies through the Radisson Hotels Americas integration, exceeding the company’s original synergy target ahead of schedule. In July, the company onboarded the nearly 600 Radisson Hotels Americas hotels onto its reservation delivery engine and integrated the two loyalty programs.
- During the first six months of 2023, the company returned approximately $264 million to shareholders in the form of cash dividends and share repurchases. Over the trailing 12 months ended June 30, the company repurchased 5.6 million shares of common stock totaling more than $655 million, representing 10% of the shares outstanding as of June 30, 2022.
