Choice Hotels International, Inc. · NYSE:CHH
Choice Hotels International — Q4 2023 Earnings Presentation
14 slides from Choice Hotels International's earnings presentation, Feb 20, 2024
Slide 1: Fourth Quarter and Full-Year 2023 Earnings Results Presentation
FOURTH QUARTER AND FULL-YEAR 2023 EARNINGS RESULTS PRESENTATION February 20, 2024 1
Slide 2: Forward-looking Statements
Forward-looking Statements Information set forth herein includes “forward-looking statements.” Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as “expect,” “estimate,” “believe,” “anticipate,” “should,” “will,” “f
Slide 3: Table of Contents
Table of Contents 1. Fourth Quarter and Full-Year 2023 Results 2. Outlook 3. Appendix 3
Slide 4: Fourth Quarter and Full-Year 2023 Results
1 Fourth Quarter and Full-Year 2023 Results 4
Slide 5: Fourth Quarter and Full-Year 2023 Performance
Fourth Quarter and Full-Year 2023 Performance Pipeline Expansion Effective Royalty RevPAR Growth Rate Growth Global >105,000 rooms +6% +6 bps +12.7% Overall QoQ vs. FY ‘22 vs. FY ’19 Global Conversion +16% QoQ +34% vs. FY ‘22 Exceeded 2019 RevPAR levels for 31 consecutive months Growth Strategy Focu
Slide 6: Full-Year 2023 Financial Performance
Full-Year 2023 Financial Performance Revenues Profitability $1.5B $75.1M $513.4M $540.5M $6.11 Revenues Platform & procurement Royalty, licensing & Adj. EBITDA1 Adj. diluted EPS Record services fees management fees Exceeded guidance Exceeded guidance +10% YoY +18% YoY +9% YoY +13% YoY +16% YoY Integ
Slide 7: Choice Hotels has delivered double-digit profitability growth
PROFITABILITY (AS REPORTED ADJUSTED EBITDA) AND GROWTH RATES Choice Hotels has delivered double-digit profitability growth Growth YoY - 16% 10% -35% 67% 19% 13% YoY Organic - 11% 10% -35% 67% 14% 8.5% every year since 20171; Growth2 $541 profitability in 2023 $479 increased 45% higher than 2019 and
Slide 8: Outlook
OPTION 1 2 Outlook 8 8
Slide 9: FY 2024 Guidance and 2024 Revenue Sensitivities
The company is expecting to grow adjusted EBITDA by 10% in 2024, year-over-year FY 2024 Guidance 2024 Revenue Sensitivities Adj. EBITDA1 RevPAR Growth $580M - $600M flat to 2% 1 % Increase in RevPAR = $4.9M in royalties ~10% vs. FY ’23 vs. FY ’23 Effective Royalty Rate Growth mid-single 1bps Increas
Slide 10: Appendix
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Slide 11: Non-GAAP Financial Measurements and Other Definitions
Non-GAAP Financial Measurements and Other Definitions The company evaluates its operations utilizing the performance metrics of EBITDA, adjusted EBITDA, adjusted net income, and adjusted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP m
Slide 12: Non-GAAP Financial Measurements and Other Definitions
Non-GAAP Financial Measurements and Other Definitions Occupancy Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels’ available capacity. Management uses occupanc
Slide 13: Reconciliation of Non-GAAP Measures: Adjusted Net Income and EPS
Reconciliation of Non-GAAP Measures ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) ($ millions) Q4 2023* Q3 2023* FY 2024F1 FY 2023* FY 2022* Net income $ 29.0 $ 92.0 $267.1 $ 258.5 $ 332.2 Adjustments: Loss on impairment of unconsolidated joint ventures - - - - (12.2) (Gain) Loss
Slide 14: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
Reconciliation of Non-GAAP Measures ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") ($ millions) Q4 2023* Q3 2023* Q3 2022* FY 2024F1 FY 2023* FY 2022* FY 2021* FY 2020* FY 2019* FY 2018* FY 2017* Net income $ 29.0 $ 92.0 $ 103.1 $ 267.1 $ 258.5 $ 332.2 $ 289.0 $ 7
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