- Choice's 3Q 2020 domestic RevPAR decline was above expectations and better than that of peers, thanks to its focus on domestic travelers, and relatively lower exposure to business travel.
- Looking beyond the current pandemic, the expansion in the extended stay segment and new brands remain key growth drivers for Choice in the medium term.
- Choice has not committed to a timeline for reinstating dividends and resuming share purchases, and it is uncertain if Choice will prioritize capital investment over capital return in the near-term.
- Choice trades at consensus forward FY 2022 P/E and EV/EBITDA multiples of 26.0 times and 16.8 times, respectively.
For further details see:
Choice Hotels International: Current Valuations Are Fair