Choice Hotels (CHH) Beats On Q3 Earnings & Revenues, Ups View
Zacks Investment Research | Nov 05, 2019 09:23PM ET
Choice Hotels International, Inc. (NYSE:CHH) reported better-than-expected third-quarter 2019 results. The top and the bottom line not only surpassed their respective Zacks Consensus Estimate but also increased on a year-over-year basis. The upside can be primarily attributed to solid progress on its flagship Comfort brand, renovated hotels that are capturing more business travel on strong developer demand and rapid growth in upscale Cambria brand across the country.
The lodging franchisor reported adjusted earnings of $1.37 per share, beating the consensus mark of $1.29 and increasing 10% year over year. Notably, this marked its seventh straight quarter of earnings beat.
In the quarter under review, total revenues came in at $310.7 million. The figure increased 7% from the year-ago quarter’s level and topped the consensus mark of $307 million.
Let’s discuss the quarterly numbers.
Franchising & Royalties
Domestic royalty fees totaled $107.8 million, up 3% year over year. However, domestic system-wide RevPAR dipped 0.7% year over year. Average daily rate (ADR) declined 0.4% and occupancy was down 20 basis points compared with the prior-year quarter’s level.
The company’s newly-executed domestic franchise agreements were 100 in the third quarter. As of Jun 30, 2019, the number of domestic franchised hotels and rooms rose 1.8% and 1.8% year over year, respectively.
Choice Hotels International, Inc. Price, Consensus and EPS Surprise
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