Choice Hotels International Reports Major Growth in Q4 and Full-Year 2024 Results
Choice Hotels International's Results for Q4 and Full-Year 2024
Choice Hotels International, Inc. (NYSE: CHH), a premier global lodging franchise, has recently announced its fourth quarter and full-year earnings for 2024. In an extraordinary achievement, the company not only exceeded its financial guidance but also marked substantial growth in various key metrics.
Financial Highlights
For the full year 2024, Choice Hotels experienced a remarkable 16% increase in net income, bringing it to $299.7 million. This equates to a diluted earnings per share (EPS) of $6.20, a 22% rise compared to the previous year. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached an all-time high of $604.1 million, reflecting a 12% increase.
In terms of earnings per share, the adjusted diluted EPS surged by 13% to $6.88 from 2023 figures. Furthermore, the company expanded its global rooms system size by 3.3%, predominantly within the more lucrative domestic segments, which saw a growth of 4.3%.
During 2024, Choice Hotels opened 407 hotels worldwide, a staggering 21% increase year-over-year. This expansion included the opening of their 515th extended-stay property in the fourth quarter. A significant strategic move was made through a partnership with Westgate Resorts, which added 21 hotels and boosted the domestic portfolio by 14,471 rooms, thus enhancing the Choice Privileges rewards program.
Performance Metrics
The domestic revenue per available room (RevPAR) also displayed encouraging growth, increasing by 4.5% for the three months ending December 31, 2024, outpacing both the industry average and its competitive set. Additionally, the company conducted share buybacks, repurchasing 3.1 million shares of common stock for $382.1 million throughout the year, representing 6% of its starting market capitalization.
Expectations for 2025
Looking ahead, Choice Hotels has set ambitious goals for 2025 with an expected net income range of $288 to $300 million, and adjusted EBITDA projected between $625 and $640 million. Patrick Pacious, the President and CEO, expressed optimism regarding the company’s continued growth trajectory, highlighting successful relaunches of four brands and significant international expansion. He emphasized that the achievements of 2024 underpin future earnings growth and accelerated scalability for the upcoming years.
Key Metrics Summary
| Metrics | Q4 2024 | Q4 2023 | Change | Full Year 2024 | Full Year 2023 | Change |
|---|---|---|---|---|---|---|
| ---- | --- | --- | -- | --- | ---- | ---- |
| Total Revenues | $390 million | $358 million | +9% | $1.585 billion | $1.544 billion | +3% |
| Net Income | $76 million | $29 million | +162% | $300 million | $259 million | +16% |
| Adjusted EBITDA | $140 million | $125 million | +12% | $604 million | $540 million | +12% |
For more detailed insights on its strategies and openings, Choice Hotels will hold a live webcast on February 20, 2025, at 8:30 a.m. on its investor relations website.
In conclusion, Choice Hotels International has positioned itself strongly within the hospitality industry for 2024, showcasing not only resilience post-pandemic but also an ambitious outlook that promises more years of robust growth and shareholder value optimization.
Topics Travel）
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