Choice Hotels International Reports Fourth Quarter And Full-Year 2024 Results

Choice Hotels International. (PRNewsFoto/Choice Hotels International) (PRNewsfoto/Choice Hotels International) Exceeds Top End of Earnings GuidanceGrows Global Net Rooms System Size by 3.3%, Including 4.3% Growth for More Revenue-Intense Domestic Portfolio , /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor, today reported its fourth quarter and full-year 2024 results.Highlights include: Net income increased 16% to $299.7 million for full-year 2024, representing diluted earnings per share (EPS) of $6.20, a 22% increase compared to 2023, both of which exceeded the top end of the company's full-year 2024 guidance. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for full-year 2024 increased 12% to a company record of $604.1 million and exceeded the top end of the company's full-year 2024 guidance. Adjusted diluted EPS increased 13% to $6.88 for full-year 2024, compared to 2023, exceeding the top end of the company's full-year 2024 guidance. Increased net global rooms system size by 3.3%, including 4.3% growth for domestic upscale, extended stay, and midscale rooms portfolio, compared to December 31, 2023. Opened 407 hotels globally, a 21% increase for full-year 2024, compared to 2023, which included opening the 515th extended-stay hotel domestically in the fourth quarter. Entered into a strategic partnership with Westgate Resorts, the industry's premier resort operator, which added 21 hotels and 14,471 rooms to our domestic portfolio in fourth quarter 2024, expanding Choice Privileges rewards program members' access to over 180,000 upscale, upper-upscale, and luxury rooms worldwide. Increased domestic revenue per available room (RevPAR) by 4.5% for the three-month period ended December 31, 2024, compared to the same period of 2023, outperforming the industry and the respective chain scales in which the company competes by 90 basis points and 30 basis points, respectively. Repurchased 3.1 million shares of common stock for $382.1 million during full-year 2024, representing 6% of the company's market capitalization at the beginning of 2024. Full-year 2025 net income is expected to range between $288 to $300 million; full-year 2025 adjusted EBITDA is expected to range between $625 and $640 million. "Choice Hotels generated another year of strong results in 2024, exceeding the top end of our earnings guidance and delivering a 4.3% year-over-year net increase in our more revenue-intense domestic rooms portfolio, a testament to the success of our growth strategy," said Patrick Pacious, President and Chief Executive Officer. "In 2024, we also successfully relaunched four brands, substantially expanded our partnerships business, significantly increased our international footprint, achieved record organic rewards program growth, and unlocked new value through additional ancillary revenue opportunities. As we enter 2025, we will continue to realize the earnings growth from our past investments, meaningfully expand the scale of our business, and accelerate our growth in the coming years."Financial Performance ($ in millions, except per share amounts) Three months ended December 31 Twelve months ended December 31 2024 2023 2024 2023 Total Revenues $390 $358 $1,585 $1,544 Revenues Excluding Reimbursable Revenue from Franchised and Managed Properties1 $229 $213 $947 $835 Net Income $76 $29 $300 $259 Adjusted Net Income $74 $72 $332 $312 Diluted Earnings per Share $1.59 $0.58 $6.20 $5.07 Adjusted Diluted Earnings per Share $1.55 $1.44 $6.88 $6.11 Adjusted EBITDA $140 $125 $604 $540 Platform and procurement services fees increased 5% to $17.7 million for fourth quarter 2024, compared to the same period of 2023. Domestic average daily rate (ADR) grew by 3.1% and occupancy levels increased by 80 basis points for fourth quarter 2024, compared to the same period of 2023. The domestic extended stay segment achieved RevPAR growth of 5.9% for the fourth quarter, compared to the same period of 2023. The domestic effective royalty rate increased 7 basis points to 5.06% and 6 basis points to 5.09% for full-year and fourth quarter 2024, respectively, compared to the same periods of 2023. 1 Calculated as total revenues net of reimbursable revenues. Reimbursable revenues were $161 million, $146 million, $638 million and $709 million for fourth quarter 2024, fourth quarter 2023, full-year 2024 and full-year 2023, respectively. System Size and Development Rooms December 31, 2024 December 31, 2023 Change Domestic 511,739 496,965 3.0 % Domestic Upscale, Extended Stay and Midscale 449,263 430,851 4.3 % International 142,071 136,021 4.4 % Global 653,810 632,986 3.3 % Domestic net rooms portfolio grew by 3.0% from year-end 2023. Domestic net unit growth accelerated from September 30, 2024 and domestic upscale, extended stay, and midscale units grew by 1.5% from year-end 2023. Domestic extended stay net rooms portfolio grew by 9.8% from year-end 2023, and its pipeline reached nearly 43,000 rooms. Global upscale net rooms portfolio grew by 43.9% from year-end 2023, and its pipeline reached nearly 25,000 rooms. International net rooms portfolio grew by 4.4% from year-end 2023, highlighted by a 58% increase in international hotel openings in fourth quarter 2024. Global pipeline as of December 31, 2024, was over 97,000 rooms, of which nearly 83,000 rooms were domestic. Balance Sheet and LiquidityAs of December 31, 2024, the company had a total available liquidity of $699.5 million, including available borrowing capacity and cash and equivalents. The company's net debt leverage ratio was 2.9 times as of December 31, 2024.During full-year 2024, the company generated cash flows from operating activities of $319.4 million, an 8% increase compared to 2023.Shareholder Returns During full-year 2024, the company paid cash dividends totaling $55.5 million and repurchased 3.1 million shares of common stock for $382.1 million under its stock repurchase program and through repurchases from employees in connection with tax withholding and option exercises relating to awards under the company's equity incentive plans.As of December 31, 2024, the company had 3.8 million shares of common stock remaining under the current share repurchase authorization.OutlookThe outlook information below includes forward-looking non-GAAP financial measures, which management uses in forecasting performance. The adjusted numbers in the company's outlook below exclude the net surplus or deficit generated from reimbursable revenue from franchised and managed properties, additional repurchases of company stock, and other items: Full-Year 2025 Net Income $288 – $300 million Adjusted Net Income $333 – $345 million Adjusted EBITDA $625 – $640 million Diluted EPS $6.04 – $6.29 Adjusted Diluted EPS $6.98 – $7.24 Effective Income Tax Rate 25 % Full-Year 2025 vs. Full-Year 2024 Domestic RevPAR Growth 1% to 2% Domestic Effective Royalty Rate Growth Mid-single digits Global Net System Rooms Growth Approximately 1% Webcast and Conference CallChoice Hotels International will conduct a live webcast to discuss the company's fourth quarter and full-year 2024 earnings results on February 20, 2025, at 8:30 a.m. on the company's investor relations website, www.investor.choicehotels.com, accessible via the Events and Presentations tab.A conference call will also be available. Participants may listen to the call by dialing (800) 549-8228 domestically or (646) 564-2877 internationally using conference ID 13131.A replay and transcript of the event will be available on the company's investor relations website within 24 hours at www.investor.choicehotels.com/events-and-presentations.About Choice Hotels®Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing over 650,000 rooms, in 46 countries and territories as of December 31, 2024. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay, and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.Forward-Looking StatementsInformation set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, EBITDA, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, repurchases of common stock and other financial and operational measures, including occupancy and open hotels, RevPAR, and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future domestic or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of the company's relationship with employees of our franchisees; foreign currency fluctuations; impairments or declines in the value of the company's assets; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; climate change and sustainability related concerns; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness. These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.Non-GAAP Financial Measurements and Other DefinitionsThe company evaluates its operations utilizing the performance metrics of EBITDA, adjusted EBITDA, adjusted net income, and adjusted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.In addition to the specific adjustments noted below with respect to each measure, the adjusted EBITDA, adjusted net income and adjusted EPS presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, expenses associated with legal claims, (gain) loss on the sale of equity securities, net of dividend income purchased in contemplation of the proposed acquisition of Wyndham Hotels, global ERP system implementation and related costs, performance under limited debt payment guaranties and gain on sale of a hotel owned through an unconsolidated joint venture to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.Earnings Before Interest, Taxes, Depreciation, and Amortization and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: EBITDA reflects net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, impairments and gains on sale of business and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt. Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider EBITDA and adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in selling, general and administrative (SG&A) expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.Adjusted Net Income and Adjusted Earnings Per Share: Adjusted net income and EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided. Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided. Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.ContactsAllie Summers, Senior Director, Investor Relations[email protected]© 2025 Choice Hotels International, Inc. All rights reserved. Exhibit 1 Choice Hotels International, Inc. Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 REVENUES Royalty, licensing and management fees $ 120,138 $ 116,909 $ 514,569 $ 513,412 Initial franchise fees 6,473 6,547 25,606 27,787 Platform and procurement services 17,692 16,928 75,752 75,114 Owned hotels 28,114 23,566 113,459 97,641 Other 16,552 12,840 61,803 46,051 Other revenues from franchised & managed properties 200,801 181,606 793,650 784,160 Total revenues 389,770 358,396 1,584,839 1,544,165 OPERATING EXPENSES Selling, general and administrative 57,181 64,694 219,878 216,081 Business combination, diligence and transition (recoveries) costs (490) 25,165 17,233 55,778 Depreciation and amortization 10,659 10,191 43,282 39,659 Owned hotels 20,778 17,550 83,148 71,474 Other expenses from franchised & managed properties 182,423 199,314 757,525 782,409 Total operating expenses 270,551 316,914 1,121,066 1,165,401 Impairment of long-lived assets — (3,736) — (3,736) Operating income 119,219 37,746 463,773 375,028 OTHER INCOME AND EXPENSES, NET Interest expense 21,067 17,258 87,131 63,780 Interest income (2,089) (1,928) (8,646) (7,764) (Gain) loss on extinguishment of debt — (4,416) 331 (4,416) Other loss (gain) 1,774 (7,897) 1,641 (10,649) Equity in net gain of affiliates (3,241) (956) (12,329) (2,879) Total other income and expenses, net 17,511 2,061 68,128 38,072 Income before income taxes 101,708 35,685 395,645 336,956 Income tax expense 25,904 6,732 95,980 78,449 Net income $ 75,804 $ 28,953 $ 299,665 $ 258,507 Basic earnings per share $ 1.62 $ 0.58 $ 6.26 $ 5.11 Diluted earnings per share $ 1.59 $ 0.58 $ 6.20 $ 5.07 Exhibit 2 Choice Hotels International, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) December 31, December 31, 2024 2023 ASSETS Cash and cash equivalents $ 40,177 $ 26,754 Accounts receivable, net 176,672 195,896 Other current assets 122,237 73,880 Total current assets 339,086 296,530 Property and equipment, net 604,345 493,478 Operating lease right-of-use assets 83,451 85,101 Goodwill 220,187 220,187 Intangible assets, net 884,013 811,075 Notes receivable, net of allowances 32,682 78,900 Investments in equity securities, at fair value — 116,374 Investments in affiliates 117,016 70,579 Investments, employee benefit plans, at fair value 47,603 39,751 Other assets 202,144 182,824 Total assets $ 2,530,527 $ 2,394,799 LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Accounts payable $ 134,865 $ 131,284 Accrued expenses and other current liabilities 136,729 109,248 Deferred revenue 102,114 108,316 Liability for guest loyalty program 89,013 94,574 Current portion of long-term debt — 499,268 Total current liabilities 462,721 942,690 Long-term debt 1,768,526 1,068,751 Deferred revenue 132,259 133,501 Deferred compensation & retirement plan obligations 53,316 45,657 Liability for guest loyalty program 40,607 43,266 Operating lease liabilities 113,255 109,483 Other liabilities 5,114 15,853 Total liabilities 2,575,798 2,359,201 Total shareholders' (deficit) equity (45,271) 35,598 Total liabilities and shareholders' (deficit) equity $ 2,530,527 $ 2,394,799 Exhibit 3 Choice Hotels International, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Year Ended December 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 299,665 $ 258,507 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 43,282 39,659 Depreciation and amortization - other expenses from franchised and managed properties 27,578 36,076 Franchise agreement acquisition cost amortization 28,702 20,024 Loss (gain) on extinguishment of debt 331 (4,416) Impairment of long-lived assets — 3,736 Non-cash share-based compensation and other charges 43,250 46,809 Non-cash interest, investments, and affiliate income, net (7,282) (8,747) Deferred income taxes (19,028) (1,336) Equity in net gain of affiliates, less distributions received (2,327) (1,570) Franchise agreement acquisition costs, net of reimbursements (112,164) (98,316) Change in working capital and other 17,396 6,128 Net cash provided by operating activities 319,403 296,554 CASH FLOWS FROM INVESTING ACTIVITIES Investments in other property and equipment (39,102) (47,717) Investments in owned hotel properties (106,750) (68,560) Contributions to investments in affiliates (52,768) (38,930) Issuances of notes receivable (37,994) (4,323) Purchases of equity securities — (112,420) Distributions from sales of affiliates 15,850 868 Collections of notes receivable 32,100 10,852 Proceeds from sales of equity securities 108,149 — Other items, net (4,056) (5,396) Net cash used in investing activities (84,571) (265,626) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings (repayments) pursuant to revolving credit facilities 111,500 (131,500) Proceeds from the issuance of long-term debt 593,574 500,000 Repayment of long-term debt (500,000) — Debt issuance costs (8,069) (1,553) Purchases of treasury stock (380,743) (362,772) Dividends paid (55,497) (56,457) Proceeds from the exercise of stock options 17,525 6,345 Net cash used in financing activities (221,710) (45,937) Net change in cash and cash equivalents 13,122 (15,009) Effect of foreign exchange rate changes on cash and cash equivalents 301 197 Cash and cash equivalents, beginning of period 26,754 41,566 Cash and cash equivalents, end of period $ 40,177 $ 26,754 Exhibit 4 CHOICE HOTELS INTERNATIONAL, INC. SUPPLEMENTAL OPERATING INFORMATION DOMESTIC HOTEL SYSTEM (UNAUDITED) For the Three Months Ended December 31, 2024 For the Three Months Ended December 31, 2023 Change Average Daily Average Daily Average Daily Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR Upscale & Above (1) $ 146.34 53.4 % $ 78.21 $ 146.56 52.0 % $ 76.21 (0.2) % 140 bps 2.6 % Midscale & Upper Midscale (2) 98.09 52.8 % 51.78 95.21 52.3 % 49.78 3.0 % 50 bps 4.0 % Extended Stay (3) 65.02 68.6 % 44.62 61.20 68.9 % 42.15 6.2 % (30) bps 5.9 % Economy (4) 73.42 45.6 % 33.45 68.51 44.8 % 30.70 7.2 % 80 bps 9.0 % Total $ 94.32 53.6 % $ 50.51 $ 91.49 52.8 % $ 48.33 3.1 % 80 bps 4.5 % For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 Change Average Daily Average Daily Average Daily Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR Upscale & Above (1) $ 151.91 57.7 % $ 87.67 $ 151.19 56.6 % $ 85.65 0.5 % 110 bps 2.4 % Midscale & Upper Midscale (2) 100.95 55.9 % 56.45 101.12 56.8 % 57.43 (0.2) % (90) bps (1.7) % Extended Stay (3) 64.13 71.2 % 45.66 63.50 72.3 % 45.88 1.0 % (110) bps (0.5) % Economy (4) 72.18 47.1 % 34.00 71.66 47.9 % 34.36 0.7 % (80) bps (1.0) % Total $ 96.67 56.4 % $ 54.54 $ 96.92 56.9 % $ 55.19 (0.3) % (50) bps (1.2) % Effective Royalty Rate For the Three Months Ended For the Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 System-wide 5.09 % 5.03 % 5.06 % 4.99 % (1) Includes Ascend Hotel Collection, Cambria, Park Plaza, Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands. (2) Includes Clarion, Comfort Inn, Comfort Suites, Country Inn & Suites, Park Inn, Quality Inn, and Sleep Inn brands. (3) Includes Everhome Suites, Mainstay Suites, Suburban Studios, and WoodSpring Suites brands. (4) Includes Econo Lodge and Rodeway brands. Exhibit 5 CHOICE HOTELS INTERNATIONAL, INC. SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA (UNAUDITED) December 31, 2024 December 31, 2023 Variance Hotels Rooms Hotels Rooms Hotels % Rooms % Ascend Hotel Collection 233 38,589 209 23,484 24 11.5 % 15,105 64.3 % Cambria Hotels 76 10,344 74 10,239 2 2.7 % 105 1.0 % Radisson (1) 57 13,390 64 15,206 (7) (10.9) % (1,816) (11.9) % Comfort (2) 1,674 131,495 1,675 131,637 (1) (0.1) % (142) (0.1) % Quality 1,627 118,725 1,620 119,153 7 0.4 % (428) (0.4) % Country 422 33,771 428 34,122 (6) (1.4) % (351) (1.0) % Sleep 415 29,118 432 30,411 (17) (3.9) % (1,293) (4.3) % Clarion (3) 193 19,944 186 19,813 7 3.8 % 131 0.7 % Park Inn 27 2,926 4 363 23 575.0 % 2,563 706.1 % WoodSpring 256 30,846 235 28,350 21 8.9 % 2,496 8.8 % MainStay 141 10,157 127 8,863 14 11.0 % 1,294 14.6 % Suburban 111 9,159 105 9,112 6 5.7 % 47 0.5 % Everhome 7 799 1 98 6 600.0 % 701 715.3 % Econo Lodge 642 37,528 675 39,805 (33) (4.9) % (2,277) (5.7) % Rodeway 447 24,948 470 26,309 (23) (4.9) % (1,361) (5.2) % Domestic Franchises 6,328 511,739 6,305 496,965 23 0.4 % 14,774 3.0 % International Franchises 1,258 142,071 1,222 136,021 36 2.9 % 6,050 4.4 % Total Franchises 7,586 653,810 7,527 632,986 59 0.8 % 20,824 3.3 % (1) Includes Radisson, Radisson Blu, Radisson Individuals and Radisson RED brands. (2) Includes Comfort family of brand extensions, including Comfort Inn and Comfort Suites. (3) Includes Clarion family of brand extensions, including Clarion and Clarion Pointe. Exhibit 6 CHOICE HOTELS INTERNATIONAL, INC. SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (UNAUDITED) EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") AND ADJUSTED EBITDA (dollar amounts in thousands) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net income $ 75,804 $ 28,953 $ 299,665 $ 258,507 Income tax expense 25,904 6,732 95,980 78,449 Interest expense 21,067 17,258 87,131 63,780 Interest income (2,089) (1,928) (8,646) (7,764) (Gain) loss on extinguishment of debt — (4,416) 331 (4,416) Other loss (gain) 1,774 (7,897) 1,641 (10,649) Equity in net gain of affiliates (3,241) (956) (12,329) (2,879) Depreciation and amortization 10,659 10,191 43,282 39,659 Depreciation and amortization - reimbursables 2,749 1,074 8,671 8,541 Impairment of long-lived assets — 3,736 — 3,736 EBITDA $ 132,627 $ 52,747 $ 515,726 $ 426,964 Share-based compensation 5,634 4,572 21,118 21,075 Mark to market adjustments on non-qualified retirement plan investments 224 3,374 7,409 6,329 Franchise agreement acquisition cost amortization and charges 3,361 6,307 14,953 14,675 Net reimbursable (surplus) deficit from franchised and managed properties (6,629) 29,155 18,152 8,538 Global ERP system implementation and related costs 791 — 1,377 — Business combination, diligence and transition (recoveries) costs (490) 25,165 17,233 55,778 Operational restructuring charges 4,895 3,703 5,683 5,547 Limited payment guaranty charge — — — 1,551 Expenses associated with legal claims — — 2,430 — Adjusted EBITDA $ 140,413 $ 125,023 $ 604,081 $ 540,457 ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) (dollar amounts in thousands, except per share amounts) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net income $ 75,804 $ 28,953 $ 299,665 $ 258,507 (Gain) loss on extinguishment of debt — (3,356) 250 (3,356) Impairment of long-lived assets — 2,839 — 2,839 (Gain) Loss on investments in equity securities, net of dividend income — (3,005) 5,076 (3,005) Franchise agreement acquisition cost (recoveries) charges (940) 2,346 (940) 2,346 Net reimbursable (surplus) deficit from franchised and managed properties (5,101) 21,954 13,559 6,429 Global ERP system implementation and related costs 598 — 1,041 — Business combination, diligence and transition (recoveries) costs (370) 19,288 13,028 42,391 Operational restructuring charges 3,700 2,814 4,296 4,216 Limited payment guaranty charge — — — 1,174 Expenses associated with legal claims — — 1,830 — Gain on sale of an affiliate — — (5,446) — Adjusted Net Income $ 73,691 $ 71,833 $ 332,359 $ 311,541 Diluted Earnings Per Share $ 1.59 $ 0.58 $ 6.20 $ 5.07 (Gain) loss on extinguishment of debt — (0.07) 0.01 (0.07) Impairment of long-lived assets — 0.06 — 0.06 (Gain) Loss on investments in equity securities, net of dividend income — (0.06) 0.11 (0.06) Franchise agreement acquisition cost recoveries (charges) (0.02) 0.05 (0.02) 0.05 Net reimbursable (surplus) deficit from franchised and managed properties (0.10) 0.43 0.27 0.13 Global ERP system implementation and related costs 0.01 — 0.02 — Business combination, diligence and transition (recoveries) costs (0.01) 0.39 0.27 0.83 Operational restructuring charges 0.08 0.06 0.09 0.08 Limited payment guaranty charge — — — 0.02 Expenses associated with legal claims — — 0.04 — Gain on sale of an affiliate — — (0.11) — Adjusted Diluted Earnings Per Share (EPS) $ 1.55 $ 1.44 $ 6.88 $ 6.11 Exhibit 7 CHOICE HOTELS INTERNATIONAL, INC. SUPPLEMENTAL INFORMATION - 2025 OUTLOOK (UNAUDITED) Guidance represents the company's range of estimated outcomes for the full year ended December 31, 2025 EBITDA & ADJUSTED EBITDA (in thousands) Full Year Full Year Lower Range Upper Range Net income $ 288,000 $ 300,000 Income tax expense 96,000 100,000 Interest expense 88,200 87,200 Interest income (7,200) (7,200) Other loss 500 500 Equity in net gain of affiliates (2,900) (2,900) Depreciation and amortization 57,000 57,000 EBITDA $ 519,600 $ 534,600 Share-based compensation 22,400 22,400 Franchise agreement acquisition costs amortization and charges 23,200 23,200 Net reimbursable deficit from franchised and managed properties 50,000 50,000 Global ERP system implementation and related costs 6,100 6,100 Operational restructuring charges 3,700 3,700 Adjusted EBITDA $ 625,000 $ 640,000 ADJUSTED NET INCOME & DILUTED EARNINGS PER SHARE (EPS) (in thousands, except per share amounts) Full Year Full Year Lower Range Upper Range Net income $ 288,000 $ 300,000 Net reimbursable deficit from franchised and managed properties 37,800 37,800 Global ERP system implementation and related costs 4,500 4,500 Operational restructuring charges 2,700 2,700 Adjusted Net Income $ 333,000 $ 345,000 Diluted Earnings Per Share $ 6.04 $ 6.29 Net reimbursable deficit from franchised and managed properties 0.80 0.80 Global ERP system implementation and related costs 0.09 0.09 Operational restructuring charges 0.05 0.06 Adjusted Diluted Earnings Per Share (EPS) $ 6.98 $ 7.24 SOURCE Choice Hotels International, Inc. 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Choice Hotels International Reports Fourth Quarter And Full-Year 2024 Results

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