CHOICE HOTELS INTERNATIONAL Sees $1.32 Billion Revenue Decrease, What’s Next?
January 9, 2023
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CHOICE ($NYSE:CHH): They are one of the largest hotel franchisors in the world, and their portfolio consists of a variety of well-known brands such as Comfort Inn, Quality Inn, Clarion, Mainstay Suites, Cambria Hotels & Suites, Sleep Inn, and Suburban Extended Stay Hotels. With cost-saving measures in place and plans for expansion and digital marketing strategies, they are hoping for a brighter future when the pandemic comes to an end.
Share Price
CHOICE HOTELS INTERNATIONAL recently reported a revenue decrease of $1.32 billion. Although news sentiment has been mostly positive, the stock opened on Tuesday at $113.5 before closing at $110.1, a decrease of 2.2% from its previous closing price of $112.6. The revenue decrease is likely to have a significant effect on CHOICE HOTELS INTERNATIONAL’s operations and future prospects, and it is unknown how the company will respond to the downturn. It is possible that the company may decide to reduce its workforce in order to cut costs and maximize profits. This could lead to job losses across the company, which could be devastating for many employees and the local economy in which CHOICE HOTELS INTERNATIONAL operates.
Alternatively, the company may choose to invest in new technologies or services in order to increase its appeal to customers and take advantage of the current market conditions. This would require substantial investments of time and money, but could result in increased revenues in the long term if successful. Regardless of what CHOICE HOTELS INTERNATIONAL decides to do, it is clear that the decrease in revenue will have a significant impact on the company’s operations and future. It is important for investors and consumers alike to pay close attention to the company’s next moves in order to gain an understanding of how it plans to navigate this difficult period. 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 |
| 1.32k | 340.51 | 24.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CHH. More…
| Operations | Investing | Financing |
| 403.65 | -510.02 | -255.1 |
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 |
| 2.19k | 1.9k | 7.72 |
Key Ratios Snapshot
Some of the financial key ratios for CHH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | 15.3% | 37.3% |
| FCF Margin | ROE | ROA |
| 23.1% | 74.2% | 14.1% |
VI Analysis
Company fundamentals are a great way to determine a company’s long-term potential. The VI App makes it easy to analyze the fundamentals of CHOICE HOTELS INTERNATIONAL. According to the VI Star Chart, it has a high health score of 8/10, indicating that it is capable of paying off debt and funding future operations. It is classified as a ‘Cheetah’, which is a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are interested in CHOICE HOTELS INTERNATIONAL may be drawn to its strong dividend, growth potential, and medium profitability. It is weak in terms of asset holdings. Investors who are looking for a company with a higher risk-reward ratio may be interested in this type of stock. Those who are more risk-averse may want to look elsewhere. In conclusion, CHOICE HOTELS INTERNATIONAL provides investors with an opportunity for higher returns but with greater risk. Investors should carefully consider the company’s fundamentals and decide if it is an appropriate investment for them. More…
VI 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 recently reported a $1.32 billion decrease in revenue for the year. Despite this, the company remains well-positioned for future success. Investors should look at the company’s history of strong financial performance, its broad portfolio of brands, and its customer loyalty. Choice Hotels International has a long-standing commitment to customer service and innovation, which will likely be maintained in the coming year.
Additionally, the company has a strong balance sheet and is positioned to benefit from a potential recovery in travel demand. Investors may want to watch for potential changes in customer behavior, as well as the impact of any new policies or regulations that could affect the hospitality industry.
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