Choice Hotels International, Inc. reported a total revenue of $1.58 billion for the fiscal year ending December 31, 2024, reflecting a 2.6% increase from $1.54 billion in 2023. The company's operating income rose significantly to $463.8 million, up from $375.0 million in the previous year, driven by improved performance across its hotel franchising operations. Net income also increased to $299.7 million, compared to $258.5 million in 2023, resulting in diluted earnings per share of $6.20, up from $5.07.
The company experienced a slight decline in domestic royalty fees, which decreased by $3.4 million to $454.7 million, attributed to a 1.2% decrease in revenue per available room (RevPAR) due to lower average daily rates and occupancy rates. However, this was offset by a 3.0% increase in the number of open and operating domestic hotel rooms, which reached 6,328 by year-end. The effective royalty rate improved to 5.06%, up from 4.99% in 2023. International royalty fees increased to $29.8 million, supported by a growth in the international franchise system size.
Strategically, Choice Hotels continued to expand its portfolio, with 964 hotels and 97,325 rooms in its development pipeline as of December 31, 2024. The company has focused on enhancing its brand presence, particularly through the Cambria Hotels and Everhome Suites brands. Additionally, the company has made significant investments in its loyalty program, Choice Privileges, which now boasts approximately 69 million members, contributing to increased customer engagement and retention.
Operationally, the company managed 13 hotels and owned 12, with revenues from owned hotels increasing to $113.5 million, up from $97.6 million in 2023. The company also reported a decrease in business combination costs, reflecting the completion of the integration of Radisson Hotels Americas, which was acquired in August 2022. Looking ahead, Choice Hotels remains optimistic about its growth trajectory, emphasizing its commitment to franchisee profitability and strategic investments to enhance brand value and market share.
About CHOICE HOTELS INTERNATIONAL INC /DE
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