Jefferies & Company Reports 4Q 10 Results Above Expectation

Jefferies & Company, Inc. has published a report on Choice Hotels Int'l CHH. According to the report, 4Q 2010 results were generally above expectations from an EBITDA and RevPAR basis, with EPS benefiting from below the line items. “We expect the shares to be pressured from these results given the recent run up in the shares and the potentially disappointing 2011 guidance.” Jefferies & Company said that Choice Hotels Int'l's revenue results were above their estimate with royalty fees $2.6 million higher than their $56.4 million estimate. “The effective royalty rate increased 3 bps to 4.31% YoY. Total room growth for the quarter was 0.6% sequentially. RevPAR was up 9.7% for CHH's domestic hotels, with occupancy increasing by 420 bps and ADR up 0.6%. This compares to guidance of 7.0-8.0% for the fourth quarter.” Choice Hotels Int'l closed yesterday at $41.25.
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