Choice Hotels International (NYSE:CHH) shares rose sharply on Wednesday after the company offered another signal that travel demand remains robust.
For the fourth quarter, the Maryland-based hotel franchisor notched $1.26 in earnings per share, exceeding estimates by $0.20, while $361.98M in revenue beat expectations by $5.24M. Domestic RevPAR for the quarter also came in 20.4% above pre-pandemic levels.
“2022 was a landmark year for Choice Hotels, in which we drove step function growth with adjusted EBITDA surpassing 2019 levels by 28%. We generated significant organic growth over 2021 and acquired the Radisson Hotels Americas brands in August, which has accelerated our long-term growth potential” CEO Patrick Pacious said. “Our distinct strategy of growing our brand portfolio with hotels that generate higher royalties per unit is driving impressive results.”
Moving forward, management expects net Income to range from $245M to $265M for the full-year and adjusted EBITDA is anticipated to range between $520M and $540M. The analyst consensus for the latter figure had stood at $519.6M prior to the results. Domestic RevPAR is expected to increase approximately 2% compared to full-year 2022.
Shares of Choice Hotels (CHH) rose 3.13% in midday trading on Wednesday.
Dig into the details of the earnings print.
Choice Hotels stock charges higher on earnings beat
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