CHOICE HOTELS INTERNATIONAL Reports Fourth Quarter FY2022 Earnings Results on December 31, 2022

Earnings report

CHOICE ($NYSE:CHH): 4 % c o m p a r e d t o t h e s a m e p e r i o d t h e p r e v i o u s y e a r . T h e i n c r e a s e i n n e t i n c o m e w a s a w e l c o m e d s u r p r i s e t o i n v e s t o r s , w h o h a v e s e e n t h e c o m p a n y s t r u g g l e i n r e c e n t y e a r s d u e t o e c o n o m i c h e a d w i n d s . M o v i n g f o r w a r d , a n a l y s t s a r e o p t i m i s t i c t h a t C H O I C E H O T E L S I N T E R N A T I O N A L c a n c o n t i n u e t o c a p i t a l i z e o n c o s t s a v i n g s i n o r d e r t o d r i v e g r o w t h.

Price History

On Wednesday, December 31, 2022, CHOICE HOTELS INTERNATIONAL reported its fourth quarter FY2022 earnings results. The company opened trading at $126.0 and closed at $130.0, an increase of 3.4% from the previous closing price of 125.7. This is further demonstrated by CHOICE HOTELS INTERNATIONAL’s stock performance, which showed strong gains on the day. Investors seemed pleased with the results as they reacted positively to the news. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis

GoodWhale analysts have been working to analyze the fundamentals of CHOICE HOTELS INTERNATIONAL. We believe that this company is a strong candidate for investors wanting to make an informed decision. Our Star Chart gives CHOICE HOTELS INTERNATIONAL a health score of 8/10, which shows that it has strong cashflows and debt and is capable of riding out any crisis without the risk of bankruptcy. CHOICE HOTELS INTERNATIONAL has also been classified by us as a “cheetah”; a type of company that has achieved high revenue or earnings growth, but is considered to be less stable due to lower profitability. This would make it appealing to a certain type of investor who is looking for higher returns but is willing to accept higher risks. From a fundamental perspective, CHOICE HOTELS INTERNATIONAL is strong in dividend, growth, and medium in profitability, while being weak in assets. Investors who understand the short-term risks associated with investing in companies with high growth rates may be interested in CHOICE HOTELS INTERNATIONAL. More…

Peers

Choice Hotels International, Inc. is one of the world’s largest hotel companies. With over 6,300 hotels across more than 35 countries and territories, Choice Hotels International offers a wide variety of lodging options to suit any need. Wyndham Hotels & Resorts, Hilton Worldwide Holdings, and Marriott International are all major competitors in the hotel industry.

– Wyndham Hotels & Resorts Inc ($NYSE:WH)

Wyndham Hotels & Resorts Inc is one of the largest hotel companies in the world, with over 7,500 hotels across more than 80 countries. The company offers a wide range of hotel brands, from economy to luxury, and its portfolio includes some of the most well-known hotel brands in the world, such as Wyndham, Ramada, Days Inn, and Super 8. Wyndham Hotels & Resorts is headquartered in Parsippany, New Jersey.

The company’s market cap is 6.2B as of 2022 and its ROE is 30.65%.

– Hilton Worldwide Holdings Inc ($NYSE:HLT)

Hilton Worldwide Holdings Inc. is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. The company operates in three segments: Owned and Leased Hotels, Management and Franchise, and Timeshare. As of December 31, 2020, it owned, leased, or managed 2,084 properties with 883,944 rooms. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

– Marriott International Inc ($NASDAQ:MAR)

Marriott International is one of the world’s largest hotel companies, with more than 6,000 properties in over 120 countries and territories. Marriott operates and franchises hotels and timeshare properties under 30 brands, including Marriott, Ritz-Carlton, Sheraton, and Westin. The company also has a vacation ownership division, Marriott Vacations Worldwide. Marriott was founded in 1927 by J. Willard Marriott and Frank J. Taylor.

Summary

Choice Hotels International is an attractive investment proposition due to their strong reported financials. In the most recent quarter, total revenue decreased by 13.4% but net income increased by 27.2%. This shift suggests that the company may be taking strategic steps to increase efficiency and trim costs. On the same day as the earnings report was released, Choice Hotels International’s stock price moved up, making it an attractive option for investors.