Choice Hotels Q2 Fees Rise to $383M

Ticker: CHH · Form: 10-Q · Filed: 2024-08-08T00:00:00.000Z

Sentiment: bullish

Topics: earnings, franchise-fees, revenue-growth

TL;DR

**CHOICE HOTELS FEES UP IN Q2** Royalty, Licensing & Mgmt Fees hit $383M (vs $354M LY). Initial Franchise Fees $17M (vs $15M LY).

AI Summary

Choice Hotels International Inc. reported its Q2 2024 results, with Royalty, Licensing and Management Fees for the quarter ending June 30, 2024, totaling $383 million, an increase from $354 million in Q2 2023. For the six months ending June 30, 2024, these fees reached $761 million, up from $707 million in the same period last year. Initial Franchise Fees also saw a rise, with $17 million reported for Q2 2024 compared to $15 million in Q2 2023.

Why It Matters

This filing indicates continued revenue growth for Choice Hotels through its core franchise and management fee structure, suggesting a healthy demand for its brands.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report showing positive financial trends, with no immediate red flags.

Key Numbers

$383M — Q2 Royalty, Licensing & Management Fees (Represents an increase from $354M in Q2 2023.)
$761M — Year-to-Date Royalty, Licensing & Management Fees (Represents an increase from $707M in the same period of 2023.)
$17M — Q2 Initial Franchise Fees (Shows growth from $15M in Q2 2023.)

Key Players & Entities

CHOICE HOTELS INTERNATIONAL INC (company) — Filer of the 10-Q report
20240630 (date) — End of the reporting period for the 10-Q
$383 million (dollar_amount) — Royalty, Licensing and Management Fees for Q2 2024
$354 million (dollar_amount) — Royalty, Licensing and Management Fees for Q2 2023
$761 million (dollar_amount) — Royalty, Licensing and Management Fees for the six months ending June 30, 2024
$707 million (dollar_amount) — Royalty, Licensing and Management Fees for the six months ending June 30, 2023
$17 million (dollar_amount) — Initial Franchise Fees for Q2 2024
$15 million (dollar_amount) — Initial Franchise Fees for Q2 2023

FAQ

What were Choice Hotels' total Royalty, Licensing and Management Fees for the second quarter of 2024?

For the quarter ending June 30, 2024, Choice Hotels reported $383 million in Royalty, Licensing and Management Fees.

How do the year-to-date Royalty, Licensing and Management Fees for 2024 compare to 2023?

For the six months ending June 30, 2024, these fees were $761 million, compared to $707 million for the same period in 2023.

What was the amount of Initial Franchise Fees for Q2 2024?

Choice Hotels reported $17 million in Initial Franchise Fees for the second quarter of 2024.

How did Initial Franchise Fees in Q2 2024 compare to Q2 2023?

Initial Franchise Fees for Q2 2024 were $17 million, an increase from $15 million reported in Q2 2023.

What is the company's fiscal year end?

Choice Hotels International Inc. has a fiscal year end of December 31.

From the Filing

0001046311-24-000028.txt : 20240808 0001046311-24-000028.hdr.sgml : 20240808 20240808120752 ACCESSION NUMBER: 0001046311-24-000028 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 77 CONFORMED PERIOD OF REPORT: 20240630 FILED AS OF DATE: 20240808 DATE AS OF CHANGE: 20240808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHOICE HOTELS INTERNATIONAL INC /DE CENTRAL INDEX KEY: 0001046311 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] ORGANIZATION NAME: 05 Real Estate & Construction IRS NUMBER: 521209792 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-13393 FILM NUMBER: 241187036 BUSINESS ADDRESS: STREET 1: 915 MEETING STREET STREET 2: SUITE 600 CITY: NORTH BETHESDA STATE: MD ZIP: 20852 BUSINESS PHONE: 3015925000 MAIL ADDRESS: STREET 1: 915 MEETING STREET STREET 2: SUITE 600 CITY: NORTH BETHESDA STATE: MD ZIP: 20852 FORMER COMPANY: FORMER CONFORMED NAME: CHOICE HOTELS FRANCHISING INC DATE OF NAME CHANGE: 19971118 FORMER COMPANY: FORMER CONFORMED NAME: CHOICE HOTELS INTERNATIONAL INC/ DATE OF NAME CHANGE: 19971022 10-Q 1 chh-20240630.htm 10-Q chh-20240630 CHOICE HOTELS INTERNATIONAL INC /DE 0001046311 12/31 2024 Q2 FALSE 297 635 xbrli:shares iso4217:USD iso4217:USD xbrli:shares chh:loan xbrli:pure chh:brand chh:hotel 0001046311 2024-01-01 2024-06-30 0001046311 2024-07-31 0001046311 chh:RoyaltyLicensingAndManagementFeesMember 2024-04-01 2024-06-30 0001046311 chh:RoyaltyLicensingAndManagementFeesMember 2023-04-01 2023-06-30 0001046311 chh:RoyaltyLicensingAndManagementFeesMember 2024-01-01 2024-06-30 0001046311 chh:RoyaltyLicensingAndManagementFeesMember 2023-01-01 2023-06-30 0001046311 chh:InitialFranchiseFeesMember 2024-04-01 2024-06-30 0001046311 chh:InitialFranchiseFeesMember 2023-04-01 2023-06-30 0001046311 chh:InitialFranchiseFeesMember 2024-01-01 2024-06-30 0001046311 chh:InitialFranchiseFeesMember 2023-01-01 2023-06-30 0001046311 chh:PlatformAndProcurementServicesMember 2024-04-01 2024-06-30 0001046311 chh:PlatformAndProcurementServicesMember 2023-04-01 2023-06-30 0001046311 chh:PlatformAndProcurementServicesMember 2024-01-01 2024-06-30 0001046311 chh:PlatformAndProcurementServicesMember 2023-01-01 2023-06-30 0001046311 chh:OwnedHotelsMember 2024-04-01 2024-06-30 0001046311 chh:OwnedHotelsMember 2023-04-01 2023-06-30 0001046311 chh:OwnedHotelsMember 2024-01-01 2024-06-30 0001046311 chh:OwnedHotelsMember 2023-01-01 2023-06-30 0001046311 chh:OtherRevenueTopic606AndNotTopic606Member 2024-04-01 2024-06-30 0001046311 chh:OtherRevenueTopic606AndNotTopic606Member 2023-04-01 2023-06-30 0001046311 chh:OtherRevenueTopic606AndNotTopic606Member 2024-01-01 2024-06-30 0001046311 chh:OtherRevenueTopic606AndNotTopic606Member 2023-01-01 2023-06-30 0001046311 chh:OtherRevenuesFromFranchisedAndManagedPropertiesMember 2024-04-01 2024-06-30 0001046311 chh:OtherRevenuesFromFranchisedAndManagedPropertiesMember 2023-04-01 2023-06-30 0001046311 chh:OtherRevenuesFromFranchisedAndManagedPropertiesMember 2024-01-01 2024-06-30 0001046311 chh:OtherRevenuesFromFranchisedAndManagedPropertiesMember 2023-01-01 2023-06-30 0001046311 2024-04-01 2024-06-30 0001046311 2023-04-01 2023-06-30 0001046311 2023-01-01 2023-06-30 0001046311 2024-06-30 0001046311 2023-12-31 0001046311 2022-12-31 0001046311 2023-06-30 0001046311 us-gaap:CommonStockMember 2022-12-31 0001046311 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001046311 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0001046311 us-gaap:TreasuryStockCommonMember 2022-12-31 0001046311 us-gaap:RetainedEarningsMember 2022-12-31 0001046311 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0001046311 2023-01-01 2023-03-31 0001046311 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-03-31 0001046311 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0001046311 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0001046311 us-gaap:TreasuryStockCommonMember 2023-01-01 2023-03-31 0001046311 us-gaa