Choice Hotels raises FY guidance as revenues rise

Choice Hotels Group, has raised its financial guidance for FY23, following a 3% increase in revenues to $425.6m (£354.4m) during Q3. 

The group revealed that total revenues, excluding reimbursable revenue from franchised and managed properties, increased 9% to $219.6m (£178.7m) for Q3.

This comes as Q3 adjusted net incomes increased 6% to $92.4m (£75.2m), as the group’s global rooms pipeline as of 30 September increased 6% to over 99,000 rooms from 30 June. 

The expansion of its international pipeline as of 30 September nearly doubled its room count from the same period last year, including over 30 properties that represent roughly 6,000 rooms. 

Patrick Pacious, president and CEO of Choice Hotels, said: “We generated another record quarter of impressive financial growth, driven by our best-in-class business delivery engine and organic growth of our brand portfolio focused on hotels that generate higher royalties per unit. 

“We believe we are well-positioned to effectively grow our business in the current hotel development environment with a superior hotel conversion capability. We will continue to execute our robust organic earnings growth strategy and pursue inorganic growth to drive long-term shareholder value.”

He added: “At its core, our proposed combination with Wyndham is about the natural fit of the two companies coming together to accelerate value creation for all stakeholders. We made our proposal public so that all groups could evaluate its benefits.”