Choice Hotels International, Inc. · NYSE:CHH
Choice Hotels International — Q2 2023 Earnings Presentation
17 slides from Choice Hotels International's earnings presentation, Aug 8, 2023
Slide 1: Q2 2023 Earnings Presentation
Radisson Poliforum Plaza Hotel, Leon, Mexico Q2 2023 Earnings Presentation August 8, 2023 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 Business Update 2 Financial Summary and Highlights 3 Outlook 4 Appendix 3 Cambria Hotels, Sonoma, CA
Slide 4: Business Update
1 Business Update Country Inn & Suites, Smithfield-Selma, NC 4
Slide 5: Second Quarter 2023 Performance Recap
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Second Quarter 2023 Performance Recap Update System Growth Effective Royalty Rate Domestic1 International New hotels added within a brand generated: +6 bps vs. Q2 ’22 +12% rooms YoY +12% rooms YoY +20% Higher royalty revenue versus hote
Slide 6: Upscale, Extended Stay and Midscale brand updates
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Radisson Blu, Chicago, IL Everhome Suites Hotel, Corona, CA Comfort Inn & Suites, CrossPlex Village, AL Upscale Extended Stay Midscale • Cambria Hotels ranked #1 in Upscale Guest • WoodSpring Suites ranked #1 in Economy • Unveiled room
Slide 7: Financial Summary and Highlights
Financial Summary and 2 Highlights Cambria Hotels, Boston, MA 7
Slide 8: Second Quarter 2023 Financial Performance
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Second Quarter 2023 Financial Performance Revenues Profitability $427.4M $28.8M $140.5M $153.1M $1.75 Total revenues Platform & procurement Royalty, licensing & Adj. EBITDA1 Adj. diluted EPS Quarterly record services fees management fee
Slide 9: Disciplined approach to capital allocation and long-term shareholder value
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Choice Hotels maintains a disciplined approach to capital allocation and is committed to driving long-term shareholder value 1 2 3 Growth M&A Capital Initiatives Management Increase the entire platform’s Disciplined approach to potentia
Slide 10: Double-digit profitability growth every year since 2017
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX With the exception of COVID-impacted 2020, Choice Hotels has delivered double-digit profitability growth every year since 2017; profitability in 2023 is expected to be 43% higher than 2019 levels and over 80% higher than 2017 levels CPr
Slide 11: Outlook
3 Outlook Comfort Ascend InnCollection, Hotel & Suites, Boise, ID Henderson, NV 11
Slide 12: FY 2023 Guidance and Revenue Sensitivities
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX The company is expecting to grow adjusted EBITDA by 12% at the midpoint of the guidance, year-over-year and expects an additional 10% growth in 2024 FY 2023 Guidance 2023 Revenue Sensitivities Adj. EBITDA1 Raised midpoint of guidance up
Slide 13: Appendix
4 Appendix 13 Comfort Suites, Natchitoches, LA
Slide 14: Non-GAAP Financial Measurements and Other Definitions
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Non-GAAP Financial Measurements and Other Definitions The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, revenues excluding reimbursab
Slide 15: Non-GAAP Financial Measurements and Other Definitions
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Non-GAAP Financial Measurements and Other Definitions Occupancy Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utiliza
Slide 16: Reconciliation of Non-GAAP Measures
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Reconciliation of Non-GAAP Measures ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) ($thousands) Q2 2023* Q2 2022* FY 2023* FY 2022* Net income $ 84,710 $ 106,168 $ 261,700 $ 332,150 Adjustments: Loss on extinguishment
Slide 17: Reconciliation of Non-GAAP Measures
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Reconciliation of Non-GAAP Measures ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") ($thousands) Q2 2023* Q2 2022* FY 2023* FY 2022* FY 2019* Net income $ 84,710 $ 106,168 $ 254,800 $332,150 $ 222,878
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