Choice Hotels International, Inc. reported a modest increase in total revenues for the third quarter of 2024, reaching $427.964 million, compared to $425.557 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $1.195 billion, up from $1.186 billion in the prior year. The company experienced a decline in royalty, licensing, and management fees, which fell to $147.151 million in Q3 2024 from $148.512 million in Q3 2023. However, revenues from owned hotels increased significantly, rising to $31.936 million from $26.239 million year-over-year.
Operating income for Q3 2024 improved to $151.783 million, up from $135.042 million in Q3 2023, while net income also saw a notable increase, reaching $105.716 million compared to $92.024 million in the prior year. Basic earnings per share rose to $2.24 from $1.83, and diluted earnings per share increased to $2.22 from $1.81. For the nine-month period, net income decreased slightly to $223.861 million from $229.554 million in 2023, although basic and diluted earnings per share improved to $4.64 and $4.61, respectively.
The company’s total assets grew to $2.544 billion as of September 30, 2024, up from $2.395 billion at the end of 2023. Cash and cash equivalents also saw a significant increase, rising to $58.565 million from $26.754 million. However, long-term debt surged to $1.811 billion, compared to $1.069 billion at the end of 2023, reflecting increased borrowings to support operations and strategic initiatives.
Choice Hotels has focused on profitable growth and maximizing financial returns, with strategic priorities including enhancing hotel performance and increasing franchise sales. The company operates 7,515 hotels with 634,952 rooms and has 970 hotels in its development pipeline. Notably, the company terminated its pursuit of acquiring Wyndham in early 2024, which mitigated associated risks.
In terms of operational performance, domestic royalty fees decreased by $1.9 million to $131.6 million in Q3 2024, attributed to a 2.5% decline in domestic system-wide revenue per available room (RevPAR). The effective royalty rate, however, increased from 4.99% to 5.05%. Selling, general, and administrative expenses rose to $49.1 million, primarily due to increased deferred compensation liabilities and provisions for credit losses.
Overall, Choice Hotels continues to navigate a competitive landscape while focusing on strategic growth and operational efficiency.
About CHOICE HOTELS INTERNATIONAL INC /DE
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