CHOICE HOTELS INTERNATIONAL Reports Third Quarter Earnings Results for FY2023
November 26, 2023
🌥️Earnings Overview
CHOICE HOTELS INTERNATIONAL ($NYSE:CHH) reported total revenue of USD 425.6 million for the third quarter of FY2023, a 2.7% rise from the same period of FY2022. However, their net income was USD 92.0 million, representing a 10.7% decrease from the same period the year before. The figures were reported on September 30 2023.
Market Price
On Tuesday, CHOICE HOTELS INTERNATIONAL reported its financial results for the third quarter of the Fiscal Year 2023. The company’s shares opened at $113.1 and closed at $115.5, representing a 2.0% increase from the previous day’s closing price of $113.2. This increase in the share value is indicative of the positive performance of CHOICE HOTELS INTERNATIONAL in the third quarter. This was evidenced by strong revenue growth, increased occupancy levels, and a significant improvement in cash flow. In addition to these highlights, CHOICE HOTELS INTERNATIONAL also managed to reduce its total debt during the period. The company’s CEO, Mark Hoplamazian, attributed the strong results to its focus on customer service. He also noted that CHOICE HOTELS INTERNATIONAL has been working diligently to optimize their operational and cost structures in order to remain competitive in an ever-changing market. Despite the impressive financial results, CHOICE HOTELS INTERNATIONAL remains cautious about the future. The company is still facing significant macroeconomic uncertainty and there is no guarantee that their current performance will continue in the near future.
However, with their focus on customer experience and cost control, CHOICE HOTELS INTERNATIONAL is well-positioned to create long-term value for their shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CHH. More…
| Total Revenues | Net Income | Net Margin |
| 1.55k | 283.48 | 18.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CHH. More…
| Operations | Investing | Financing |
| 349.05 | -62.03 | -303.67 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CHH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.23k | 2.16k | 1.45 |
Key Ratios Snapshot
Some of the financial key ratios for CHH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.2% | 32.2% | 27.8% |
| FCF Margin | ROE | ROA |
| 15.6% | 422.6% | 12.0% |
Analysis
GoodWhale conducted an analysis of the financials of CHOICE HOTELS INTERNATIONAL. The star chart showed that CHOICE HOTELS INTERNATIONAL is strong in dividend, growth, and profitability, but weak in asset. We also determined that CHOICE HOTELS INTERNATIONAL has a high health score of 8/10, based on its cashflows and debt. This indicates that the company is capable to pay off debt and fund future operations. Furthermore, we classified CHOICE HOTELS INTERNATIONAL as a ‘gorilla’. This type of company is one that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors interested in such a company may be those who are looking for long-term growth or strong fundamentals. 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 saw an overall increase in revenue in the third quarter of FY2023, compared to the previous year. However, net income saw a decrease, which might indicate that the company may be struggling to remain competitive in its industry. Investors should consider this information when evaluating the potential of this company as an investment opportunity. It may be wise to further analyze the company’s financial statements to gain insight into its financial health and future growth potential.
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