Choice Hotels (NYSE:CHH) International, Inc. (NYSE:CHH) announced today a record total revenue of $425.6 million for Q3 2023, marking a 3% increase from the previous year. The company also reported a net income of $92 million and an earnings per share (EPS) of $1.81.
The company has shown a significant return to shareholders, with a total of $550 million being returned over the past year through dividends and stock buybacks. This includes dividends worth $42.1 million and stock repurchases valued at $306.9 million in the first nine months of 2023. The company repurchased 2.5 million shares during this period.
Excluding reimbursable revenue from franchised and managed properties, total revenues rose by 9% to reach $219.6 million. Adjusted net income saw an increase of 6%, reaching $92.4 million, while adjusted EPS grew by 17% to $1.82.
The hospitality giant also reported a record Q3 adjusted EBITDA of $155.9 million, a 12% increase from the previous year. In addition, the company's global rooms pipeline grew by 6%, and they nearly doubled their international pipeline.
In terms of expansion, Choice Hotels opened an average of four hotels per week, marking a 24% increase in hotel openings compared to the same period in 2022.
Following these strong results, Choice Hotels has upwardly revised its full-year financial guidance for 2023, forecasting an EPS between $5.95 and $6.03.
InvestingPro Insights
Based on the real-time data from InvestingPro, Choice Hotels International Inc (CHH) has a market capitalization of 5600M USD and a P/E Ratio of 19.99 as of Q2 2023. The company's revenue for the last twelve months as of Q2 2023 is 764.81M USD, marking a growth of 24.09%.
The InvestingPro Tips reveal some noteworthy aspects of CHH's financial health and performance. Management's aggressive share buybacks align with the company's recent report of stock repurchases valued at $306.9 million in the first nine months of 2023. This strategy, coupled with the fact that CHH operates with a high return on assets (14.01% as of Q2 2023), implies a strong commitment to enhancing shareholder value.
Furthermore, the company's impressive gross profit margin of 91.46% as of Q2 2023 echoes the strong financial results reported in the article. The upward revision of earnings by 3 analysts for the upcoming period also supports the company's optimistic forecast for the full-year financial guidance for 2023.
These are just a few of the many insights available through InvestingPro. For more in-depth analysis and tips, consider exploring the InvestingPro platform, which offers a wealth of additional information and insights on CHH and other companies.
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