Overview

* Choice Hotels ( CHH ) Q3 revenue rises 5%, beating analyst expectations

* Adjusted EPS for Q3 misses analyst estimates due to higher amortization and tax expenses

* Net income for Q3 rises to $180 mln, up from $105.7 mln last year

Outlook

* Choice revises full-year 2025 net income outlook to $353 mln-$371 mln

* Adjusted diluted EPS for 2025 expected at $6.82-$7.05

* Company projects U.S. RevPAR growth between -3% and -2% for 2025

Result Drivers

* INTERNATIONAL EXPANSION - Co reports 8.3% growth in international net rooms, driven by new market entries and increased openings

* HIGHER REVENUE SEGMENTS - 3.3% growth in upscale, extended stay, and midscale segments contributed to global net room growth

* FRANCHISE AGREEMENTS - 54% increase in global franchise agreements awarded, indicating strong growth potential

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $447.30 $426.32

Revenue mln mln (7

Analysts

)

Q3 Miss $2.10 $2.18

Adjusted (10

EPS Analysts

)

Q3 Net $180 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and 4 "sell" or "strong sell"

* The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."

* Wall Street's median 12-month price target for Choice Hotels International Inc ( CHH ) is $121.00, about 24.4% above its November 4 closing price of $91.50

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)