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Choice Hotels International, Inc. (NYSE: CHH), stands as a global leader in the hospitality industry, with its extensive portfolio featuring over 7,500 hotels and 630,000 rooms across 46 countries and territories. Its diverse range of 22 brands caters to a broad spectrum of travelers, from full-service upper upscale properties to midscale, extended stay, and economy options.
Core Business: Choice Hotels primarily operates through a franchise model, generating 100% of its revenue from franchise fees. The U.S. market represents 79% of its total rooms. Key brands under its umbrella include Comfort Inn, Comfort Suites, Ascend, and Cambria, which together account for over one-third of the company's domestic rooms.
Recent Achievements and Projects: Recently, Choice Hotels has made significant strides in expanding its portfolio and enhancing its technological capabilities. The acquisition of Radisson Hotels Americas in August 2022 added around 70,000 rooms, boosting its presence in the upscale market. The company also launched the Comfort Rise & Shine prototype, further solidifying its leadership in the upper midscale segment.
Choice Hotels has a history of leveraging technology to enhance guest experiences and streamline operations for franchisors. Sireesha Kunduri's recent promotion to Chief of Product Engineering underscores their commitment to technological innovation aimed at delivering better value to hotel owners and guests.
Partnerships and Campaigns: To connect with younger travelers, Choice has partnered with influencer Jimmy Darts, reaching his vast social media audience. This initiative supports its latest marketing campaign, 'A Stay for Any You,' aiming to highlight its diverse brand offerings.
Financial Condition: As of the first quarter of 2024, Choice Hotels reported an increase in adjusted EBITDA and EPS by 17% and 14%, respectively. The company’s strong performance is attributed to synergies from the Radisson acquisition and strategic expansion projects. It continues to reward shareholders through dividends and stock repurchase programs.
Commitment to Diversity: The SOAR program, which promotes hotel ownership among underrepresented entrepreneurs, has awarded over 370 franchise agreements to diverse participants. Programs like HERtels further empower female entrepreneurs, reflecting Choice's long-standing commitment to diversity and inclusion.
Extended Stay Leadership: Choice Hotels is a front-runner in the extended stay segment, with brands such as Everhome Suites. The recent openings and groundbreakings in key markets highlight the brand’s rapid growth, driven by a robust pipeline and strategic collaborations with developers like Highside Companies.
Overall, Choice Hotels International continues to excel through a combination of strategic acquisitions, innovative technology, and strong franchisee support, maintaining its position as a significant player in the global hospitality industry.
Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor, has announced a quarterly cash dividend of $0.2875 per share on its common stock. The dividend will be payable on October 16, 2024, to shareholders of record as of October 1, 2024. Choice Hotels boasts a diverse portfolio of 22 brands across various segments, with nearly 7,500 hotels representing over 630,000 rooms in 45 countries and territories. The company's range spans from full-service upper upscale properties to midscale, extended stay, and economy options, catering to a wide array of traveler needs while aiming to drive value for franchise owners and shareholders.
Choice Hotels International, Inc. (NYSE: CHH) has expanded its upscale portfolio with the opening of the Radisson Hotel Fairview Heights - St. Louis in Fairview Heights, Illinois. The four-story, 119-room hotel offers nearly 10,000 square feet of meeting spaces and amenities including a heated indoor pool, fitness center, and on-site bar and restaurant. Located near downtown St. Louis, the hotel provides easy access to popular attractions and airports.
The property features a modern nature-inspired design with guest rooms equipped with ergonomic work areas, free WiFi, flat-screen TVs, and more. Radisson participates in the Choice Privileges rewards program, which allows members to earn and redeem points at over 7,000 hotels worldwide. Choice Hotels continues to support its franchisees with cutting-edge solutions and resources to maximize their return on investment.
Choice Hotels International (NYSE: CHH) has announced its first contract under the recently reintroduced SOAR program, aimed at creating hotel ownership opportunities for underrepresented entrepreneurs. Damon Healey of Eternal Companies has signed a contract to convert two hotels in Georgia to Suburban Studios, one of Choice's extended stay brands. The properties, located in Columbus and Macon, opened on May 30.
The SOAR program reaffirms Choice's commitment to supporting underrepresented entrepreneurs in hotel ownership. In 2023, Choice's Emerging Markets program executed 28 new franchise contracts with diverse entrepreneurs, including 9 with African American owners and 17 with women owners through the HERtels by Choice program. The company has awarded and financially supported over 370 franchise agreements with underrepresented minority and veteran entrepreneurs since the program's inception.
Choice Hotels International, Inc. (NYSE: CHH) is expanding its Everhome Suites brand with three new locations breaking ground in San Antonio, Texas; Bowling Green, Kentucky; and Wichita, Kansas. These developments, in collaboration with Highside Companies, reinforce Choice's leadership in the extended stay segment. Currently, Choice has 4 Everhome Suites open, 65 in the pipeline, over 20 under construction, and more than 15 expected to open within the next 12 months. The new properties will offer 115-123 rooms each, featuring fully equipped kitchens, spa-style bathrooms, and various amenities. Choice Hotels continues to capitalize on the growing extended stay demand, which is currently double the supply.
Choice Hotels International (NYSE: CHH) has installed three beehives at its North Bethesda headquarters in collaboration with Bee Downtown to promote sustainability and local biodiversity. The estimated 150,000 honeybees can pollinate a 3-mile radius, potentially impacting 18,000 acres of surrounding land.
Choice associates selected a 'Bee Hotel' design for the hives, which are expected to produce over 100 pounds of honey in just months. The initiative is part of Choice's Room to Be Green program, focusing on energy, water, waste, biodiversity, and engagement across all Choice Hotels brands worldwide.
The collaboration offers educational opportunities for Choice associates, including honey tastings and hive tours. This project aligns with Choice's commitment to environmental stewardship, as their office building in Pike & Rose is pursuing LEED Gold Certification and is WiredScore Gold Certified.
Choice Hotels International (NYSE: CHH) has named 72andSunny New York as its new creative agency and dentsu X as its digital media agency of record. This strategic collaboration aims to increase awareness and drive direct bookings for Choice's 22 hotel brands, including Radisson, Cambria Hotels, and Comfort Hotels. The partnership will leverage cultural trends and cutting-edge technology to reach guests effectively.
Choice Hotels has expanded to eight upscale and full-service hotel brands globally, introduced new designs for select-service brands, and is transforming its rewards program. dentsu X has already implemented a media strategy for 2024, while 72andSunny is developing the 2025 marketing campaign. The collaboration also includes Havas Media, which will continue to lead media planning and buying for TV.
Choice Hotels International's WoodSpring Suites has been ranked #1 in guest satisfaction by the J.D. Power 2024 North America Hotel Guest Satisfaction Index Study for the third consecutive year. This achievement highlights WoodSpring's position as the top economy extended stay brand. With 246 locations open and 264 in development as of Q2 2024, WoodSpring is part of Choice's extended stay portfolio, which is set to reach 500 hotels later this year.
The J.D. Power study measures customer satisfaction based on six factors, including communications, food and beverage, guest room, hotel facility, staff service, and value for price. WoodSpring Suites offers affordable weekly and monthly rates with spacious suites featuring in-room kitchens, catering to longer-term guests.
Choice Hotels International (NYSE: CHH) reported strong Q2 2024 results, with total revenues reaching a record $435.2 million, up 2% year-over-year. Net income increased 3% to $87.1 million, with diluted EPS up 9% to $1.80. Adjusted EBITDA grew 6% to a quarterly record of $161.7 million.
The company's global rooms pipeline expanded 22% year-over-year to over 114,000 rooms, with domestic rooms pipeline up 11%. Global hotel openings increased by 20% compared to Q2 2023. Choice Hotels raised the midpoint of its full-year 2024 EPS guidance, demonstrating confidence in its growth strategy and business model.
Key highlights include a 14% increase in total revenues excluding reimbursable revenue and a 5 basis point increase in domestic effective royalty rate to 5.04%. The company also expanded its international portfolio and repurchased 2.4 million shares for $296.2 million year-to-date.
Choice Hotels International's Choice Privileges program is launching its third season of College Football Experiences. Members can now bid their points on 40 exclusive VIP experiences with 15 different teams, including the national champion Michigan Wolverines. The program, in collaboration with Learfield, offers fans premium game tickets, pre-game sideline passes, and team store gift cards.
Choice Hotels has nearly 100 properties across 15 brands within 10 miles of participating college stadiums. This initiative caters to Choice Privileges members who are college football fans, often staying at Choice hotels for business during the week and for games on weekends. The experiences cover popular teams like Alabama Crimson Tide, Ohio State Buckeyes, and Oklahoma Sooners.
Choice Hotels International (NYSE: CHH) has expanded its Cambria Hotels brand with four new openings in popular U.S. destinations: Niagara Falls, NY; Rehoboth, DE; North Conway, NH; and Denver, CO. These additions bring the total number of Cambria Hotels to over 70 nationwide. The new properties offer full-service upscale experiences with amenities like restaurants, bars, and meeting spaces, catering to both leisure and business travelers.
The expansion aligns with the summer travel season, as a Deloitte survey indicates nearly half of Americans plan to take a trip. Each new hotel features unique designs reflecting local charm and industrial roots, while providing modern amenities and convenient locations near popular attractions. The openings reinforce Choice Hotels' position as a challenger in the upscale segment, complementing its portfolio of brands including Radisson Blu and Ascend Hotel Collection.
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