Choice Hotels International recently reported lower fourth-quarter sales and provided an update on its ongoing merger discussions with Wyndham Hotels & Resorts, despite facing resistance from its potential partner.
Lower Profit In Fourth Quarter
The hotel company, known for brands such as Econo Lodge and Cambria Hotels, disclosed a fourth-quarter profit of $29 million, or 58 cents per share. This is a decline from $55.5 million, or $1.04 per share, recorded in the same period the previous year. Adjusted earnings, which exclude one-time expenses linked to the merger pursuit, were reported at $1.44 per share–surpassing analysts’ expectations of $1.35 per share.
Sales Decline and Future Projections
Choice Hotels’ sales dropped by 1% to $358.4 million, missing analysts’ estimates of $369.4 million. Domestic revenue per available room (RevPAR), a crucial metric for the industry, saw a 390 basis point decrease in the quarter. Looking ahead to 2024, the company is aiming for adjusted earnings between $6.30 and $6.60 per share, slightly below the analysts’ projection of $6.73 per share. It also anticipates domestic RevPAR to remain steady or increase by up to 2% in 2024.
