Choice Hotels International, Inc. · NYSE:CHH

Choice Hotels International — Q4 2024 Earnings Presentation

16 slides from Choice Hotels International's earnings presentation, Feb 20, 2025

  1. Slide 1: Fourth Quarter and Full-Year 2024 Earnings Results Presentation

    FOURTH QUARTER AND FULL-YEAR 2024 EARNINGS RESULTS PRESENTATION Cambria Hotels, Nashville Midtown, TN FEBRUARY 20, 2025 1

  2. 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,” “

  3. Slide 3: Table of Contents

    Table of Contents 1. Fourth Quarter and Full-Year 2024 Results 2. Outlook 3. Appendix 3 Hotel Faranda Rias Altas, Ascend Hotel Collection, Oleiros, Spain

  4. Slide 4: Fourth Quarter and Full-Year 2024 Results

    1 Fourth Quarter and Full-Year 2024 Results WoodSpring Suites Lobby 4

  5. Slide 5: Fourth Quarter and Full-Year 2024 Performance

    Fourth Quarter and Full-Year 2024 Performance System Growth Domestic Effective Royalty RevPAR Growth Rate Growth Global Openings +21% vs. FY '23 +4.5% vs. Q4 '23 +7 bps vs. FY '23 Global Rooms +3.3% vs. FY '23 Outperformed Industry by 90 bps Strategic Partnership Domestic Rooms1 +4.3% vs. FY '23 wit

  6. Slide 6: Full-Year 2024 Financial Performance

    Full-Year 2024 Financial Performance Revenues Profitability $946.6M $332.4M $604.1M $6.88 Adjusted Revenues1 Adj. Net Income2 Adj. EBITDA2 Adj. diluted EPS Exceeded guidance Exceeded guidance Exceeded guidance +13% YoY +7% YoY +12% YoY +13% YoY Shareholder Returns Balance Sheet >$435M >3M >6% ~$700M

  7. Slide 7: Details on Reimbursable Revenues and Expenses

    Details on Reimbursable Revenues and Expenses Three Months Ended December 31, 2024 Year Ended December 31, 2024 Non- Non- Reimbursable Reimbursable Total Reimbursable Reimbursable Total Revenues Other revenue from franchised and managed properties $ 161,116 $ 39,685 $ 200,801 $ 638,192 $ 155,458 $ 7

  8. Slide 8: Free Cash Flow Conversion Ratio

    Free Cash Flow Conversion Ratio $ in Millions FY 2024 FY 2023 Net Operating Cash Flow $ 319.4 $ 296.6 Key Money $ 112.2 $ 98.3 Operating Cash Flow excl. Key Money $ 431.6 $ 394.9 Maintenance Capex $ 39.1 $ 47.7 Adj. Free Cash Flow $ 392.5 $ 347.2 Adj. EBITDA $ 604.1 $ 540.5 FCF Conversion Ratio 65%

  9. Slide 9: Outlook

    3 Outlook Everhome Suites Lobby 9

  10. Slide 10: Full-Year 2025 Outlook

    Full-Year 2025 Outlook Adj. Diluted EPS1 RevPAR Growth 2025 Revenue Sensitivities $6.98 to $7.24 1% to 2% vs. FY ’24 1% Increase in domestic RevPAR = ~$4.9M in royalties Adj. Net Income2 Effective Royalty Rate Growth $333M to $345M mid-single 1bps Increase in effective royalty rate = ~$1M in royalti

  11. Slide 11: Appendix

    4 Appendix 11 Cambria Hotel Boston Sommerville, MA

  12. Slide 12: 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

  13. Slide 13: 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 occupan

  14. Slide 14: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) ($ millions) Q4 2024* Q4 2023* FY 2024* FY 2023* Net Income $75.8 $29.0 $299.7 $258.5 Adjustments Impairments of long-lived assets – 2.8 – 2.8 (Gain) Loss on extinguishment of debt – (3.4) 03 (3.4)

  15. Slide 15: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures ADJUSTED EBITDA ($ millions) Q4 2024* Q4 2023* FY 2024* FY 2023* FY 2022* FY 2021* FY 2020* FY 2019* FY 2018* Net Income $75.8 $29.0 $299.7 $258.5 $332.2 $289.0 $75.4 $222.9 $216.4 Income tax expense 25.9 6.7 96.0 78.4 104.7 87.5 (22.4) 47.1 56.9 Interest expense

  16. Slide 16: Reconciliation of Non-GAAP Measures for Full-Year 2025

    Reconciliation of Non-GAAP Measures for Full-Year 2025 EBITDA AND ADJUSTED EBITDA (in thousands) Full Year (Lower Range) Full Year (Upper Range) Net Income $ 288,000 $ 300,000 Income tax expense 96,000 100,000 Interest expense 88,200 87,500 Interest income (7,200) (7,200) Other loss 500 500 Equity i

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