Choice Hotels International Announces Strong 2023 Performance and Optimistic 2024 Outlook

Choice Hotels International reports a robust financial performance for 2023, with record revenues and a strong outlook for 2024. The company highlights its growth, strategic initiatives, and the ongoing pursuit of a combination with Wyndham Hotels & Resorts, aiming to create significant value for stakeholders.

Choice Hotels International, Inc. (NYSE: CHH) disclosed its financial results for the fourth quarter and the entire year of 2023, showcasing significant achievements and setting ambitious goals for 2024. The company celebrated a record $1.5 billion in total revenues for 2023, a 10% increase from the previous year, alongside a net income of $258.5 million, translating to $5.07 per diluted share. Despite facing integration costs and other one-time items, the adjusted EBITDA soared to a record $540.5 million, a 13% rise from 2022, surpassing the company's own projections.

The year was marked by accelerated growth in the domestic upscale, extended stay, and midscale brands, contributing to a 1.8% increase in hotels and a 2.4% rise in rooms since the end of 2022. Furthermore, the global pipeline expanded by 6%, emphasizing the company's robust development strategy.

For 2024, Choice Hotels projects a net income between $260 million and $274 million, with an adjusted EBITDA forecast of $580 million to $600 million. This outlook reflects the company's strategic initiatives, including the significant completion of the Radisson Americas integration, which alone achieved $85 million in annual recurring synergies.

Amidst its financial successes, Choice Hotels also highlighted its commitment to a strategic combination with Wyndham Hotels & Resorts. Patrick Pacious, President and CEO, expressed confidence in the potential value creation for stakeholders through this partnership, emphasizing Choice's strong performance in direct business delivery and superior hotel conversion capabilities.

The fourth quarter of 2023 saw a slight 1% decline in total revenues compared to the same period in 2022, but adjusted EBITDA and adjusted diluted EPS experienced growth, demonstrating the company's resilient and adaptable business model. The full year also saw substantial investments in shareholder returns, including $56.5 million in cash dividends and significant share repurchases.

Looking forward, Choice Hotels continues to pursue its combination with Wyndham, aiming to leverage synergies and provide enhanced value to franchisees, shareholders, and guests. The company remains optimistic about its regulatory progress and is actively engaging with stakeholders to ensure the success of this strategic move.