Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Since its launched the cobrand program has exceeded expectations on new account sign-ups and card spend |
| This positive trend was evident in 2023 as we exceeded our unit growth guidance |
| We delivered record financial performance as we exceeded the top end of our guidance with a 13% year-over-year increase in adjusted EBITDA to $540.5 million, a 16% year-over-year increase in adjusted EPS to $6.11, and unit growth ahead of our expectations led by our successful strategy of adding hotels that generate higher royalties per unit |
| In 2023, we significantly expanded our rewards program, increased our geographic reach, unlocked new value to our platform capabilities, and created step function growth through the rapid completion of the Radisson Americas' integration |
| This positive momentum combined with projected unit growth acceleration and supported by our superior hotel conversion capability gives us confidence in achieving our expected adjusted EBITDA growth of 10% in 2024, which is captured in our current guidance range |
| Our distinct growth strategy, supported by our best-in-class franchising business engine drove adjusted full-year 2023 EBITDA 13% higher than the prior year, and 45% higher than in 2019 |
| This continues our consistent track record of delivering double-digit profitability growth year after year |
| We have positioned the company to build on this performance in 2024, and beyond, as we continue to grow our franchise business with hotels that generate higher royalties per unit, while leveraging the investments we've made in our systems to further improve the franchisees' profitability |
| Choice's strong growth is fueled by the successful execution of our key strategies, which demonstrate the versatility of our business model |
| So, we are excited about what the growth could for the year |
| So, we feel like we're good on that |
| Second, increasing the velocity of hotel openings through our best-in-class hotel conversion capability, which is our distinct advantage in today's development environment |
| Third, expanding our geographic growth internationally, where we more than doubled our EBITDA contribution for the year |
| And finally, creating outsized value through the successful integration of new businesses, most recently Radisson Americas |
| Our distinct unit growth strategy continues to deliver results and enhances the attractiveness of our brands |
| For full-year 2023, a combination of higher than expected growth of the Choice legacy portfolio across our more revenue intense brands and markets, strong effective royalty rate growth, successful integration of the Radisson Americas portfolio, and the robust performance of our platform, procurement and international businesses drove full-year adjusted EBITDA of $540.5 million which exceeded our full-year guidance |
| So, happy to take offline with what you're looking at, but we saw strong opening growth, including the full-year growth of 13% in our openings |
| So, when you look at our September 30 results into December 31, we actually saw strong growth in all of our revenue intensive brands |
| These new revenue-intense franchises are more accretive to our earnings and are a key driver of our future growth |
| We utilized our strong cash flows and under levered balance sheet to continue to invest in the business, generating impressive growth in our profitability as well as acquiring over a $110 million of Wyndham common stock |
| But we feel really confident, as I said about how we view the regulatory environment |
| Importantly, the new hotels we added within a brand, on average, generated royalty revenue nearly 20% higher than hotels exiting the brand |
| At the same time, we executed new hotel openings at an impressive pace |
| In terms of RevPAR, we still think the long-term fundamentals for travel remains strong |
| In the current hotel development environment, our core competency of a best-in-class hotel conversion capability has an even greater impact |
| Through our superior speed-to-market conversion process and best-in-class franchisee support, we are able to move projects quickly through the pipeline |
| Our full-year 2023 adjusted EPS also exceeded our previously issued guidance reaching $6.11 per share, a 16% increase year-over-year |
| We believe that we can drive this strong revenue growth in the years ahead as we continue to expand our platform and increase the number of products and services we offer to over 7,500 hotels, millions of guests and other travel partners |
| Our full-year adjusted EBITDA represents a new record eclipsing the $0.01 last year, increasing 13% compared to 2022 and growing 45% compared to the same period of 2019, which was our pre-pandemic peak |
| We believe a combined company would deliver clear benefits to both Choice and Wyndham franchisees |
| Statement |
|---|
| Wyndham has mischaracterized franchisee sentiment |
| Your Q4 RevPAR domestically came in, was below we had sort of thought was implied by STR's chain scale results |
| And I think the feedback we've heard from them is around one word, they're frustrated |
| And then, full-year guide flat, up 2 also below STR's forecast which for midscale and upper midscale was closer to 3% |
| We're still below in terms of occupancy, our pre-pandemic levels |
| RevPAR was down 3.9% year-over-year in the quarter, reflecting tougher year-over-year comps as we were the first hotel company to return to and significantly exceed pre-pandemic RevPAR levels |
| They're frustrated that Wyndham's Board is not engaging in a conversation that would help answer those questions |
| Obviously, that kills two of three concerns, i.e |
| I just think our comps were tougher there |
| The Radisson Greens and the full-service Radisson is likely going to continue to see some decline in 2024 with a reversal of that and growth coming in 2025 |
| I think when you look at where we stand today; unfortunately Wyndham's Board really just continues to refuse to engage |
| Those two together those did decline a touch quarter over quarter |
| Over the last six-plus months, it has become clear that Wyndham's board is deeply entrenched and unwilling to take the actions that are in the best interest of their shareholders |
| So, if you look at a macro basis, supply growth is still expected to be relatively muted in the industry growing less than 1% |
| which is conservative? Or, how would you describe your particular outlook for RevPAR? Scott Oaksmith Yes, in terms of fourth quarter, I think really we had really tougher comps |
| In terms of the global pipeline, our global pipeline from the end of the year was basically flat, just about 106,000 rooms down to 105,000 rooms |
| You made a comment about Q4, but unfortunately the audio cut out a little bit |
| But GDP, consumer spending, both expected to grow over 2% in 2024 and unemployment still remains at historical lows |
| So, I guess I am curious if one, in the fourth quarter if there was any sort share loss or anything else you want to call out |
| The first is that this is a very competitive marketplace |
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