- Choice Hotels ( NYSE: CHH ) shares plunged 9% on Monday after the hospitality company fell short of expectation with its third quarter earnings.
- The Maryland-based firm generated adjusted earnings of $1.56 per share on revenue of $414.27M that grew 28.1% Y/Y and beat Wall Street estimates. Earnings fell short by $0.13.
- Domestic revenue per available room growth accelerated quarter-over-quarter, increasing by 15.2% compared to the same period of 2019, outperforming the total industry by 410 basis points. The growth was driven primarily by an increase in average daily rate of 15.1%, compared to third quarter 2019.
- The company closed the acquisition of Radisson Hospitality during the quarter that contributed that contributed $40.2M to the revenue and $6.8M to adjusted EBITDA.
- Overall, adjusted EBITDA increased to $139.4M from the same period of 2021 and is expected to range between $465M and $470M vs. Bloomberg consensus of $$483.1M for FY2022, implying a 15% to 17% growth Y/Y and 25% to 26% increase compared to full-year 2019.
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Choice Hotels stock slides on Q3 earnings miss