Choice Hotels Q4 Earnings Top Estimates

Choice Hotels International Inc CHH reported fourth-quarter FY21 sales growth of 47% year-on-year, to $284.64 million, beating the analyst consensus of $274.86 million.
Q4 domestic systemwide revenue per available room (RevPAR) growth increased 13.9% compared to Q4 FY19.
Revenue from royalty fees rose 55% Y/Y, procurement services climbed 33%, owned hotels gained 195%, and marketing & reservation system increased 37%.
The total operating expenses rose 6% Y/Y to $177.6 million.
The operating margin was 37.5%, and operating income for the quarter rose 555% to $106.8 million.
Adjusted EPS of $0.99 beat the analyst consensus of $0.84.
The company held $511.6 million in cash and equivalents as of December 31, 2021.
Outlook: Choice Hotels noted the continued precise recovery trends for 2022 are still somewhat uncertain.
For FY22, the company expects to drive continued Y/Y growth in RevPAR and adjusted EBITDA, including incremental investments that are expected to accelerate long-term growth in 2023 and beyond.
Price Action: CHH shares are trading lower by 2.39% at $146.82 on the last check Wednesday.

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