Choice Hotels Q3 Fees Rise to $390M

Ticker: CHH · Form: 10-Q · Filed: 2024-11-04T00:00:00.000Z

Sentiment: bullish

Topics: earnings, franchising, fees, growth

TL;DR

CHOICE HOTELS Q3 FEES UP TO $390M, YTD $1.14B. FRANCHISE FEES ALSO CLIMBING.

AI Summary

Choice Hotels International Inc. reported its Q3 2024 results, with Royalty, Licensing and Management Fees for the third quarter of 2024 reaching $390 million, an increase from $367 million in Q3 2023. For the nine months ended September 30, 2024, these fees totaled $1.14 billion, up from $1.07 billion in the same period of 2023. Initial Franchise Fees for Q3 2024 were $23 million, compared to $21 million in Q3 2023, and year-to-date fees were $67 million, up from $63 million in 2023.

Why It Matters

The increase in royalty and franchise fees indicates continued growth and demand for Choice Hotels' brands, suggesting a positive trend in their franchising business.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative developments.

Key Numbers

$390M — Q3 2024 Royalty, Licensing and Management Fees (Represents an increase from the prior year's Q3.)
$1.14B — Year-to-date 2024 Royalty, Licensing and Management Fees (Shows continued revenue growth over the first nine months.)
$23M — Q3 2024 Initial Franchise Fees (Indicates ongoing new hotel development and franchise activity.)
$67M — Year-to-date 2024 Initial Franchise Fees (Reflects a positive trend in attracting new franchisees.)

Key Players & Entities

CHOICE HOTELS INTERNATIONAL INC (company) — Filer
20240930 (date) — Reporting Period End Date
$390 million (dollar_amount) — Q3 2024 Royalty, Licensing and Management Fees
$367 million (dollar_amount) — Q3 2023 Royalty, Licensing and Management Fees
$1.14 billion (dollar_amount) — Year-to-date 2024 Royalty, Licensing and Management Fees
$1.07 billion (dollar_amount) — Year-to-date 2023 Royalty, Licensing and Management Fees
$23 million (dollar_amount) — Q3 2024 Initial Franchise Fees
$21 million (dollar_amount) — Q3 2023 Initial Franchise Fees
$67 million (dollar_amount) — Year-to-date 2024 Initial Franchise Fees
$63 million (dollar_amount) — Year-to-date 2023 Initial Franchise Fees

FAQ

What were the total Royalty, Licensing and Management Fees for the third quarter of 2024?

The total Royalty, Licensing and Management Fees for the third quarter of 2024 were $390 million.

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

For the nine months ended September 30, 2024, these fees were $1.14 billion, compared to $1.07 billion for the same period in 2023.

What were the Initial Franchise Fees for Q3 2024?

Initial Franchise Fees for Q3 2024 were $23 million.

What is the year-to-date figure for Initial Franchise Fees in 2024?

The year-to-date Initial Franchise Fees for 2024 were $67 million.

What is the company's fiscal year end?

The company's fiscal year ends on December 31.

From the Filing

0001046311-24-000036.txt : 20241104 0001046311-24-000036.hdr.sgml : 20241104 20241104155902 ACCESSION NUMBER: 0001046311-24-000036 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 76 CONFORMED PERIOD OF REPORT: 20240930 FILED AS OF DATE: 20241104 DATE AS OF CHANGE: 20241104 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: 241423333 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-20240930.htm 10-Q chh-20240930 CHOICE HOTELS INTERNATIONAL INC /DE 0001046311 12/31 2024 Q3 FALSE xbrli:shares iso4217:USD iso4217:USD xbrli:shares chh:loan xbrli:pure chh:brand chh:hotel 0001046311 2024-01-01 2024-09-30 0001046311 2024-10-30 0001046311 chh:RoyaltyLicensingAndManagementFeesMember 2024-07-01 2024-09-30 0001046311 chh:RoyaltyLicensingAndManagementFeesMember 2023-07-01 2023-09-30 0001046311 chh:RoyaltyLicensingAndManagementFeesMember 2024-01-01 2024-09-30 0001046311 chh:RoyaltyLicensingAndManagementFeesMember 2023-01-01 2023-09-30 0001046311 chh:InitialFranchiseFeesMember 2024-07-01 2024-09-30 0001046311 chh:InitialFranchiseFeesMember 2023-07-01 2023-09-30 0001046311 chh:InitialFranchiseFeesMember 2024-01-01 2024-09-30 0001046311 chh:InitialFranchiseFeesMember 2023-01-01 2023-09-30 0001046311 chh:PlatformAndProcurementServicesMember 2024-07-01 2024-09-30 0001046311 chh:PlatformAndProcurementServicesMember 2023-07-01 2023-09-30 0001046311 chh:PlatformAndProcurementServicesMember 2024-01-01 2024-09-30 0001046311 chh:PlatformAndProcurementServicesMember 2023-01-01 2023-09-30 0001046311 chh:OwnedHotelsMember 2024-07-01 2024-09-30 0001046311 chh:OwnedHotelsMember 2023-07-01 2023-09-30 0001046311 chh:OwnedHotelsMember 2024-01-01 2024-09-30 0001046311 chh:OwnedHotelsMember 2023-01-01 2023-09-30 0001046311 chh:OtherRevenueTopic606AndNotTopic606Member 2024-07-01 2024-09-30 0001046311 chh:OtherRevenueTopic606AndNotTopic606Member 2023-07-01 2023-09-30 0001046311 chh:OtherRevenueTopic606AndNotTopic606Member 2024-01-01 2024-09-30 0001046311 chh:OtherRevenueTopic606AndNotTopic606Member 2023-01-01 2023-09-30 0001046311 chh:OtherRevenuesFromFranchisedAndManagedPropertiesMember 2024-07-01 2024-09-30 0001046311 chh:OtherRevenuesFromFranchisedAndManagedPropertiesMember 2023-07-01 2023-09-30 0001046311 chh:OtherRevenuesFromFranchisedAndManagedPropertiesMember 2024-01-01 2024-09-30 0001046311 chh:OtherRevenuesFromFranchisedAndManagedPropertiesMember 2023-01-01 2023-09-30 0001046311 2024-07-01 2024-09-30 0001046311 2023-07-01 2023-09-30 0001046311 2023-01-01 2023-09-30 0001046311 2024-09-30 0001046311 2023-12-31 0001046311 2022-12-31 0001046311 2023-09-30 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-gaap:Common