Choice Hotels International, Inc. · NYSE:CHH
Choice Hotels International — Q1 2023 Earnings Presentation
16 slides from Choice Hotels International's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Earnings Presentation
Radisson Blu Acqua Hotel & Spa, Concon, Chile Q1 2023 Earnings Presentation May 9, 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 Cambria Hotel,Houston, Cambria Hotels, Calabasas, TX CA 3
Slide 4: Business Update
1 Business Update Country Inn & Suites, Smithfield-Selma, NC 4
Slide 5: First Quarter 2023 Performance Recap
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX First Quarter 2023 Performance Recap Update RevPAR Growth Effective Royalty Rate +5.9% vs. Q1 ’221 +15.1% vs. Q1 ’191 +11.2% vs. Q1 ’22 +6 bps vs. Q1 ’22 ADR Occupancy Exceeded 2019 RevPAR levels Radisson Hotels +5.2% +34 bps for 22 con
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 • Grew domestic upper-midscale portfolio by 24% • 29% YoY domestic unit growth driven by the • Expand
Slide 7: Financial Summary and Highlights
Financial Summary and 2 Highlights Cambria Hotels, Boston, MA 7
Slide 8: First Quarter 2023 Financial Performance
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX First Quarter 2023 Financial Performance Revenues Profitability $332.8M $13.8M $107.5M $106.4M $1.12 Total revenues Platform & procurement Royalty, licensing Adj. EBITDA1 Adj. diluted EPS services fees & management fees +29% YoY +18% Yo
Slide 9: Disciplined approach to capital allocation
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: Outlook
3 Outlook Comfort Ascend InnCollection, Hotel & Suites, Boise, ID Henderson, NV 10
Slide 11: FY 2023 Guidance and Revenue Sensitivities
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX The company is expecting to grow adjusted EBITDA by more than 11% at the midpoint of the guidance, year-over-year FY 2023 Guidance 2023 Revenue Sensitivities Adj. EBITDA1 RevPAR Growth2 1% Raised guidance upward by $2.5M at the midpoint
Slide 12: Appendix
4 Appendix Everhome Suites, Corona, CA 12
Slide 13: Non-GAAP Financial Measurements and Other Definitions
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Non-GAAP Financial Measurements and Other Definitions The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, revenues excluding reimbursab
Slide 14: Non-GAAP Financial Measurements
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Non-GAAP Financial Measurements Occupancy Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' av
Slide 15: Reconciliation of Non-GAAP Measures: Adjusted Net Income and EPS
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Reconciliation of Non-GAAP Measures ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) ($thousands) Q1 2023* Q1 2022* FY 2023* FY 2022* Net income $ 52,820 $ 67,391 $ 261,700 $ 332,150 Adjustments: Loss on extinguishment
Slide 16: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
BUSINESS UPDATE FINANCIAL SUMMARY & HIGHLIGHTS OUTLOOK APPENDIX Reconciliation of Non-GAAP Measures ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") ($thousands) Q1 2023* Q1 2022* FY 2023* FY 2022* FY 2019* Net income $ 52,820 $ 67,391 $ 261,700 $332,150 $ 222,878 I
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