Choice Hotels International, Inc. (CHH) has revised upward the midpoint of its financial projections for 2024, encompassing net income, adjusted EBITDA, earnings per share (EPS), and adjusted EPS. The forecast for adjusted EPS is now set between $6.70 and $6.87, compared to the previous range of $6.40 to $6.65. The EPS is now estimated to fall within $5.74 to $5.91, up from the prior estimate of $5.40 to $5.65. The expected decline in Domestic RevPAR is now between 2% and 1%, slightly less severe than the prior forecast of a 3.5% to 1.5% decrease.
**Third Quarter Financial Results:**
The company's net income surged by 15% to reach $105.7 million. The earnings per share were recorded at $2.22, marking a significant 23% rise compared to the same quarter in 2023. Similarly, the adjusted EPS rose by 23% to $2.23. These figures surpassed analysts' expectations, who, according to data from Thomson Reuters, had anticipated an EPS of $1.92 on average. It's important to note that these analysts' predictions typically exclude special items.
For the third quarter of 2024, the company reported total revenues of $428.0 million, reflecting a 1% growth compared to the same period in 2023. When excluding the reimbursable revenue from franchised and managed properties—which amounted to $171.8 million—total revenues experienced a more substantial increase of 17%, climbing to $256.1 million.
