- Choice's 4Q 2020 revenue and earnings fell short of market expectations, but the company's performance was still better than the industry average which translates into market share gains.
- The outlook for FY 2021 is uncertain; while sell-side analysts are bullish and RevPAR decline has narrowed in early 2021, management has declined to provide full-year guidance.
- Although Choice's preference for capital reinvestment over capital return could be accretive for shareholders in the medium to long term, this is negative for income-focused investors.
- Choice trades at consensus forward FY 2022 P/E and EV/EBITDA multiples of 27.7 times and 17.9 times, respectively.
For further details see:
Choice Hotels: Valuations Still Unattractive With Q4 Results Below Expectations