Choice Hotels International Inc

CHH: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$879.00	Jldlzc	Nvsnsgzxs

Choice Earnings: Mixed Results With Light Revenue, but Solid Unit and EBITDA Growth

Dan Wasiolek

Feb 20, 2024

Although Choice’s 2023 results and 2024 outlook were near our expectations, we plan to lower our $125 fair value estimate by a low-single-digit percentage, largely due to reducing our average annual revenue per available room, or revPAR, growth forecast to 4% from 5% for 2025-29. This revision is in line with our narrow-moat Wyndham forecast over this time. We continue to see both Choice and Wyndham’s off-interstate portfolios benefiting from U.S. infrastructure spending over the next several years.

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