Choice Hotels International Reports 2020 Third Quarter Results

In the third quarter of 2020, Choice Hotels continued to provide a broad range of support to its franchisees, guests, and communities while improving its overall financial and liquidity position. Highlights of third quarter and year to date 2020 results include:

• Domestic systemwide revenue per available room (RevPAR) outperformed the total industry by nearly 20 percentage points, declining 28.8% for third quarter 2020 compared to the same period of the prior year, and exceeded the chain scale segments in which the company competes, as reported by STR.

• Fourth quarter domestic RevPAR through October 24, 2020 has continued the pattern of sequential quarterly improvement, and October 2020 RevPAR is expected to decline by approximately 25% from the same period of 2019 (see Exhibit 7 for weekly RevPAR trends).

• The company awarded 232 new domestic franchise agreements year to date through September 30, 2020, a 38% decrease compared to the same period of the prior year. Nearly 70% of the agreements awarded year to date through September 30, 2020 were for conversion hotels.

• Net income was $14.5 million for the third quarter, representing diluted earnings per share of $0.26.

• Third quarter adjusted net income, excluding certain items described in Exhibit 6, decreased 52% to $36.8 million from third quarter 2019.

• Adjusted diluted earnings per share for the third quarter were $0.66, a 52% decrease from third quarter 2019.

• Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter were $74.9 million, a 34% decrease from third quarter 2019.

• The company reported cash flow from operations of over $68 million in the third quarter 2020.

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Cambria opens new Hotel in Madeira Beach

Key Take Away

Cambria Hotels, an upscale brand franchised by Choice Hotels International, has opened the Cambria Hotel St. Petersburg–Madeira Beach Marina.

The Cambria Hotel St. Petersburg–Madeira Beach Marina was developed by Madeira Hotel Investors, LLC. It's the third Cambria Hotel in Florida, with others in Fort Lauderdale and Miami. The company also is participating in "Commitment to Clean," Choice Hotels' holistic approach.

For More Information Click Below:

stpetecatalyst.com/zaps/cambria-opens-new-hotel-in-madeira-beach/

Choice Hotels International Provides COVID-19 Business Update - March 8th

Choice Hotels International, Inc. provided an update on the impact of the coronavirus (COVID-19) pandemic on its business.

"Today, as it has been for more than 80 years, their primary focus remains on the health and well-being of our guests, franchisees and associates

It has been through challenging times before and, each time, the company has always emerged stronger given its long-term focus, proven brands, high-caliber associates and broad franchisee base."   

Balance Sheet, Liquidity and Mitigation Plans 

The company continues to benefit from its primarily franchise-only business model, which has historically provided a relatively stable earnings stream and low capital expenditure requirements. 

In addition, management and the Board of Directors have taken steps to adjust the company's cost structure and increase its financial flexibility, which include, but are not limited to, the following actions:

• Reduced the compensation of the Board of Directors, chief executive officer and other executive officers for the remainder of 2020.

• Implemented a hiring freeze except with respect to certain critical positions, suspended associates' 401(k) match and implemented a temporary furlough for certain positions in Europe, where government-mandated and other closures have been more prevalent.

• Eliminated, reduced or deferred non-essential expenditures, discretionary capital expenditures and investments.

• Suspended the company's share repurchase plan.

• Determined to suspend future, undeclared dividends for the remainder of 2020.

  March Performance

  Domestic occupancy levels were below 50% for the month of March and softened in the last ten days of the month to trend in a range between 26% and 33% daily occupancy. These occupancy trends have continued in early April with over 90% of the company's domestic branded hotels continuing to operate at this time.

  While the company believes that the long-term fundamentals of the business remain strong, it will continue to adjust business contingency plans as the COVID-19 crisis evolves. The company continues to monitor the situation closely and intends to provide further commentary during the first quarter 2020 earnings call.