Choice Hotels International recorded a net income of $92.02m in the third quarter (Q3) of 2023, marking a decline of approximately 11% from $103.08m in the same quarter a year ago.
This decrease was due to one-time items such as Radisson Hotels Americas integration costs, gains from the sale of the Cambria Hotel Nashville-owned asset, extraordinary franchisee termination fees in Q3 2022 and timing of net reimbursable expenses.
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Total revenue for the latest quarter ending 30 September 2023 was $425.55m in Q3 2023, as against $414.26m in Q3 2022.
The basic earnings per share (EPS) in Q3 2023 stood at $1.83 as against $1.87 in the comparable year-ago period, while diluted EPS was $1.81 as against $1.85 in Q3 2022.
Total operating expenses for the latest quarter were $290.51m, compared to $282.62m in the corresponding quarter of last year.
The adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were $155.88m, compared with $139.37m a year earlier.
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By GlobalDataThe total occupancy rate decreased from 63.3% in the year-ago period to 62.0% in Q3 2023.
Choice Hotels’ total revenue per available room (RevPAR) for Q3 2023 was $64.02, while it was $64.53 in Q3 2022.
Choice Hotels president and CEO Patrick Pacious said: “We generated another record quarter of impressive financial growth, driven by our best-in-class business delivery engine, the successful integration of Radisson Americas and the organic growth of our brand portfolio focused on hotels that generate higher royalties per unit.
“We believe we are well-positioned to effectively grow our business in the current hotel development environment with a superior hotel conversion capability. We will continue to execute our robust organic earnings growth strategy and pursue inorganic growth to drive long-term shareholder value.”
For the full year 2023, the company expects its net income to be between $259m and $264m, with adjusted EBITDA to be in the range of $535m to $540m.
