We don't expect to materially change our $120 fair value estimate after narrow-moat Choice posted in-line first-quarter results and reiterated its 2024 sales and EBITDA guidance. We see shares as appropriately valued.
The completion of renovation and heavy termination activity at the Comfort brand in 2019 offers the opportunity for unit growth during the next several years.
Independent hotels and home and vacation rentals present an increasing competitive threat, and the advancement of technology and its use by next-generation travelers increase the access and awareness of these properties.
|
Metric
|
CHH
|
MAR
|
AC
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.18 | 23.61 | 18.30 |
Price/Book Value | 879.60 | — | 2.66 |
Price/Sales | 3.90 | 2.94 | 2.33 |
Price/Cash Flow | 23.19 | 22.58 | 16.52 |
|
Metric
|
CHH
|
MAR
|
AC
|
|---|---|---|---|
Quick Ratio | 0.32 | 0.39 | 0.92 |
Current Ratio | 0.37 | 0.42 | 0.98 |
Interest Coverage | 5.32 | 6.36 | 10.05 |
|
Metric
|
CHH
|
MAR
|
AC
|
|---|---|---|---|
Return on Assets (Normalized) | 13.96% | 11.84% | 5.19% |
Return on Equity (Normalized) | 732.38% | — | 14.80% |
Return on Invested Capital (Normalized) | 22.46% | 29.28% | 7.52% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
MAR
| Marriott International Inc Class A | Ffgkgfd | Rgdc | $68.3 Bil | |
HLT
| Hilton Worldwide Holdings Inc | Trxxgjwdv | Xvpp | $51.1 Bil | |
IHG
| InterContinental Hotels Group PLC ADR | Sqsfmhy | Wkc | $16.1 Bil | |
ICHGF
| InterContinental Hotels Group PLC | — | Fxtx | $16.1 Bil | |
H
| Hyatt Hotels Corp Class A | Kjrxnvvb | Jttdnr | $15.1 Bil | |
HTHT
| H World Group Ltd ADR | — | Hqhglj | $13.4 Bil | |
ACCYY
| Accor SA ADR | — | Ddzhd | $10.9 Bil | |
ACRFF
| Accor SA | — | Fzdlz | $10.9 Bil | |
WH
| Wyndham Hotels & Resorts Inc Ordinary Shares | Btxlxxpnp | Fgcdpbm | $5.7 Bil |
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