Choice Hotels International, Inc. · NYSE:CHH
Choice Hotels International — Q3 2022 Earnings Presentation
16 slides from Choice Hotels International's earnings presentation, Nov 7, 2022
Slide 1: Q3 2022 Earnings Results Presentation
Radisson Blu, Punta Cana, Dominican Republic Q3 2022 Earnings Results Presentation November 7, 2022 1
Slide 2: Forward-looking Statements
Forward-looking Statements Certain matters discussed in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-l
Slide 3: Table of Contents
Table of Contents 1 Quarterly Business Update 2 Financial Summary and Highlights 3 Appendix Park Inn by Radisson Mazatlán, Mexico
Slide 4: Quarterly Business Update
Quarterly Business 1 Update Comfort Cambria InnCalabasas, Hotel, & Suites, CA Boise, ID
Slide 5: Acquisition of Radisson Hotels Americas complements the company's existing strategy
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX The acquisition of Radisson Hotels Americas complements the company’s existing strategy of growth in RevPAR accretive markets, representing a leap forward in the evolution of Choice Hotels’ competitive position and future growth potential, and
Slide 6: Third Quarter 2022 Performance Recap and 2022 Outlook Update
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX Third Quarter 2022 Performance Recap and 2022 Outlook Update Domestic Results1 RevPAR Growth Franchise Pipeline3 Agreements +15.2% Outperformed industry for 11 consecutive quarters by +410 basis points +16% vs. Q3 ’19 ADR +15.1% vs. Q3 ’19 Exce
Slide 7: Midscale
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX Comfort Inn & Suites, CrossPlex Village, AL Comfort Inn & Suites, Hurricane, UT Clarion Pointe, South Boston, VA Midscale • Surpassed 2019 RevPAR levels since June 2021 and achieved 11.3% RevPAR growth1 Midscale • The number of domestic franchi
Slide 8: Extended Stay
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX Everhome Suites Prototype Exterior Rendering WoodSpring Suites Entrance Everhome Model Room Extended Stay Extended • Surpassed 2019 RevPAR levels since April 2021 and achieved nearly 22% RevPAR growth1 • Expanded domestic pipeline to nearly 470
Slide 9: Upscale
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX Cambria Hotels, Milwaukee, WI Ascend, Henderson, NV Cambria Hotels, Boston, MA Upscale • Achieved 18.3% RevPAR growth and outperformed the upscale chain scale by over 13 percentage points1 Upscale • Nearly tripled the number of franchise agreem
Slide 10: Financial Summary and Highlights
Financial Summary and 2 Highlights Cambria Hotel, St. Petersburg-Madeira Beach Marina, FL
Slide 11: Third Quarter Financial Performance and Full-Year Financial Outlook Update
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX Third Quarter Financial Performance and Full-Year Financial Outlook Update Revenue, Profitability & Balance Sheet Outlook1 $414.3M $103.1M $139.4M $465M to $470M $80M Total Revenues Net Income Adj. EBITDA FY ’22 Adj. EBITDA Annual recurring Rad
Slide 12: Appendix
4 Appendix Comfort Clarion Pointe, Inn & Suites, SulphurBoise, Springs, ID TX 12
Slide 13: Non-GAAP Financial Measurements
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX Non-GAAP Financial Measurements The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted EBITDA margins, adjusted selling, general and administrative (SG&A) expenses, revenues excluding reimbursable re
Slide 14: Reconciliation of Non-GAAP Measures
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX Reconciliation of Non-GAAP Measures ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") ($thousands) Q3 2022* Q3 2021* Net income $ 103,079 $ 116,653 Income tax expense 33,696 34,934 Interest expense 9,362 11,638
Slide 15: Reconciliation of Non-GAAP Measures
QUARTERLY BUSINESS UPDATE FINANCIAL HIGHLIGHTS APPENDIX Reconciliation of Non-GAAP Measures ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) ($thousands) Q3 2022* Q3 2021* Net income $ 103,079 $ 116,653 Adjustments: Loss on impairment of affiliate - - (Gain) on sale of affiliate (10
Slide 16: Cambria Hotels, Philadelphia, PA Cambria Hotels, Calabasas, CA Cambria Hotels, Chicago Theater District, IL
Cambria Hotels, Philadelphia, PA Cambria Hotels, Calabasas, CA Cambria Hotels, Chicago Theater District, IL Cambria Hotels, Downtown Phoenix, AZ 16
Choice Hotels International — Q3 2022 Earnings Presentation on 6ix