Bank of Montreal Invests in Choice Hotels International
November 17, 2023
🌥️Trending News
The company’s stock is publicly traded on the New York Stock Exchange under the symbol CHH. Choice Hotels International ($NYSE:CHH) is committed to providing its franchisees with the support they need to be successful. The company offers a variety of services including marketing, technology, training, and operational support. It also offers loyalty programs designed to reward frequent guests and attract new customers. With the backing of the Bank of Montreal, Choice Hotels International is sure to have more resources at its disposal to continue offering first-class service to its guests.
Price History
On Thursday, Bank of Montreal made a strategic investment in Choice Hotels International, one of the world’s leading hotel companies. The stock for Choice Hotels opened at $112.9 and closed the day at $113.1, signifying a slight 0.2% decrease from its prior closing price of 113.3. This move is likely to give the company a needed boost as they move forward in the hospitality industry. 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 |
| 1.54k | 294.41 | 18.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CHH. More…
| Operations | Investing | Financing |
| 333.45 | -477.59 | -427.02 |
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 |
| 2.15k | 2.1k | 1.08 |
Key Ratios Snapshot
Some of the financial key ratios for CHH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.4% | 22.0% | 28.5% |
| FCF Margin | ROE | ROA |
| 15.9% | 538.9% | 12.7% |
Analysis
At GoodWhale, we conducted an analysis of CHOICE HOTELS INTERNATIONAL’s fundamentals. Our Star Chart showed that the company has a high health score of 8/10 considering its cashflows and debt, making it capable of sustaining future operations in times of crisis. We classified it as a ‘gorilla’ – a type of company that achieved stable and high revenue and earning growth due to its strong competitive advantage. Such a company is likely to be attractive to investors who are looking for steady, long-term growth prospects. Those interested in generating income from their investments may also find CHOICE HOTELS INTERNATIONAL attractive, as it pays a healthy dividend. 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
This investment will make BMO one of the largest institutional shareholders of CHH. The investment was motivated by BMO’s belief that CHH’s strong balance sheet, healthy cash flows, and track record of strong cash flow generation could lead to attractive long-term returns. Furthermore, Choice Hotels has demonstrated a strong focus on cost controls and efficient capital allocation. BMO analysts expect these strengths to continue to drive shareholder value growth, particularly when combined with CHH’s experienced management team and seasoned board of directors.
In addition, CHH has significant upside potential as it continues to expand its presence in the U.S and international markets. BMO looks forward to working closely with CHH to unlock additional value for investors.
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