NORTH BETHESDA, MD – Choice Hotels (NYSE:CHH) International, Inc. (NYSE:CHH), a hospitality giant with a market capitalization of $6.89 billion, announced a major executive change in a recent SEC filing. Robert McDowell, the company's Chief Commercial Officer, will be leaving the hospitality giant effective January 15, 2025, to pursue other opportunities.
The departure marks a significant transition within the company's leadership team, as McDowell has been a key figure in Choice Hotels' commercial strategy. The announcement, disclosed in a Form 8-K filing with the Securities and Exchange Commission, did not specify the reasons for McDowell's departure or mention a successor.
Choice Hotels, known for its portfolio of hotel brands and franchises in the lodging industry, has its headquarters in North Bethesda, Maryland. The company operates under various brand names including Comfort Inn, Quality, and Econo Lodge. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 90% and has maintained dividend payments for 21 consecutive years, demonstrating strong operational efficiency and financial stability.
In other recent news, Choice Hotels International, Inc. reported strong third-quarter performance, with significant growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share (EPS).
The company raised its full-year guidance for adjusted net income and EPS, projecting a 10% growth in adjusted EBITDA.
Furthermore, the company's global hotel pipeline expanded to over 110,000 rooms, marking an 11% year-over-year increase.
Baird has raised its price target for Choice Hotels to $145.00 from the previous $138.00, maintaining an Outperform rating. This adjustment reflects Baird's positive outlook on the company's performance, with fundamental trends showing continued improvement.
On the other hand, Jefferies moved its rating from Buy to Hold, while Goldman Sachs maintained a Sell rating, despite increasing the price target.
Choice Hotels opened 75% more hotels globally compared to the same quarter the previous year and noted a 1.8% net increase in global rooms in more revenue-intensive brands. However, Goldman Sachs expressed concern about the deceleration of the company's global pipeline for the second quarter in a row this year.
In terms of its industry peers, Choice Hotels currently trades at approximately 14 times its projected 2025 EBITDA, while its closest peers trade at 12.3 times and larger peers range from 15.7 to 18.1 times, with higher growth rates. These recent developments underline the ongoing market interest in the trajectory of Choice Hotels.
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