Choice Hotels International, Inc. reported a slight increase in total revenues for the first quarter of 2025, reaching $332.9 million, compared to $331.9 million in the same period of 2024. The company's net income also saw a significant rise, amounting to $44.5 million, up from $31.0 million year-over-year. This resulted in basic earnings per share of $0.95, compared to $0.63 in the prior year. The increase in profitability was primarily driven by a $19.8 million rise in operating income, which reached $79.9 million, attributed to higher franchise and management fees, as well as increased partnership services and fees.
In terms of operational metrics, the company reported a 2.3% increase in domestic system-wide revenue per available room (RevPAR), which was bolstered by a 1.7% rise in average daily rates and a slight increase in occupancy rates. The total number of hotels in the company's franchise system remained stable, with 6,279 hotels and 505,601 rooms as of March 31, 2025, reflecting a modest increase from the previous year. The company also reported a total of 947 hotels in its development pipeline, indicating ongoing growth potential.
Strategically, Choice Hotels has focused on enhancing its franchise offerings and expanding its market presence. The company has made significant investments in its Cambria Hotels and Everhome Suites brands, with ongoing hotel development efforts aimed at increasing brand recognition and guest satisfaction. Additionally, the company has engaged in share repurchase activities, buying back 0.4 million shares at a cost of $55.3 million during the quarter, and has maintained a consistent dividend payout of $0.2875 per share.
Looking ahead, Choice Hotels expressed optimism about its growth trajectory, supported by strong cash flows and a robust pipeline of development projects. The company anticipates that its strategic investments in franchise development and operational efficiencies will continue to drive profitability. However, management acknowledged potential risks, including economic fluctuations and changes in consumer demand, which could impact future performance. The company remains committed to maximizing shareholder value through disciplined capital allocation and ongoing enhancements to its franchise system.
About CHOICE HOTELS INTERNATIONAL INC /DE
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