Choice Hotels International (CHH) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 results, exceeding guidance with 12% year-over-year Adjusted EBITDA growth and 13% increase in Adjusted EPS; net global rooms grew 3.3% and global hotel openings rose 21%.

• Domestic RevPAR grew 4.5% in Q4 2024, outperforming the industry by 90 basis points; business travel mix rose to 40%.

• Strategic partnership with Westgate Resorts added over 14,000 rooms and 21 hotels to the domestic portfolio.

• Expanded partnerships, international footprint, and rewards program, with membership reaching 69 million, up 8% year-over-year; integrated Radisson Americas acquisition.

• Relaunched four brands and achieved record organic rewards program growth in 2024.

Financial highlights

• Full year 2024 Adjusted EBITDA: $604.1 million, up 12% year-over-year, and Adjusted EPS: $6.88, up 13%, both above guidance.

• FY 2024 revenues were $946.6M (adjusted), with total revenues at $1.59B; adjusted net income was $332.4M, up 7% year-over-year.

• Q4 2024 revenues (excluding reimbursables): $229 million, up 7% year-over-year; Q4 Adjusted EBITDA: $140 million, up 12%.

• Generated $390 million in adjusted free cash flow, up 13% year-over-year; free cash flow conversion ratio was 65%.

• Returned over $435 million to shareholders in 2024, including $56 million in dividends and $380 million in share repurchases; repurchased over 3 million shares (>6% of outstanding).

Outlook and guidance

• 2025 Adjusted EBITDA expected between $625 million and $640 million; adjusted diluted EPS guidance: $6.98–$7.24.

• 2025 adjusted net income projected at $333M to $345M; net global unit and room system size projected to grow ~1% year-over-year.

• International rooms to grow slightly above 3%; global net system rooms growth expected in the mid-single digits for 2025.

• Domestic RevPAR expected to increase 1–2% year-over-year; effective royalty rate to grow mid-single digits.

• Adjusted SG&A to grow low to mid-single digits from $276 million base.