Choice Hotels' Q2 net income declines
Overview
Choice Hotels Q2 adjusted EPS of $1.92 beats analyst expectations, per LSEG data
Net income for Q2 fell to $81.7 mln from $87.1 mln in 2024
Co highlights strategic international expansion with acquisitions and new agreements
Outlook
Company adjusts RevPAR outlook amidst changing macroeconomic backdrop
Choice Hotels expects $6 mln EBITDA contribution from Canada acquisition
Company forecasts full-year 2025 net income of $261-276 mln
Choice Hotels sees full-year 2025 adjusted EBITDA at $615-635 mln
Result Drivers
GLOBAL EXPANSION - Co accelerated international growth with strategic agreements in Brazil, France, and China, adding significant room capacity
DOMESTIC CHALLENGES - Domestic RevPAR declined due to macroeconomic uncertainty and difficult comparisons with 2024 events
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Beat | $1.92 | $1.9 (11 Analysts) |
Q2 EPS | $1.75 | ||
Q2 Adjusted Net Income | $90 mln | ||
Q2 Net Income | $81.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."
Wall Street's median 12-month price target for Choice Hotels International Inc is $132.50, about 5.6% above its August 5 closing price of $125.12
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago
Press Release:
