Choice Hotels (NYSE:CHH) reported Q4 EPS of $1.26, $0.20 better than the analyst estimate of $1.06. Revenue for the quarter came in at $362 million versus the consensus estimate of $356.79 million. Adjusted EBITDA for fourth quarter 2022 increased 18% to $112.5 million from the same period of 2021 and included $11.5 million of adjusted EBITDA contribution from Radisson Hotels Americas.
GUIDANCE:
- Net Income for full-year 2023 is expected to range between $245 million and $265 million.
- Adjusted EBITDA for full-year 2023 is expected to range between $520 million and $540 million, representing an approximately 11% increase at the midpoint from the company's adjusted EBITDA for full-year 2022. The company's full-year 2023 outlook for adjusted EBITDA includes an adjusted EBITDA contribution of more than $60 million from the Radisson Hotels Americas business unit.
- Excluding the impact of Radisson Hotels Americas, adjusted EBITDA for full-year 2023 on a comparable basis is expected to grow by approximately 7% versus full-year 2022.6
- Domestic RevPAR for full-year 2023 is expected to increase approximately 2%, compared to full-year 2022.
- The domestic effective royalty rate for full-year 2023 is expected to continue to grow on a comparable basis in the mid-single digits versus full-year 2022, off a 4.93% baseline in 2022.7
- The domestic number of units for the company's upscale, extended-stay and midscale segments is expected to grow approximately 1% for full-year 2023, compared to full-year 2022.