Choice Hotels International (CHH) 4 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Choice Hotels International's Third Quarter 2024 Earnings Call. [Operator Instructions]. I will now turn the conference over to Allie Summers, Investor Relations Senior Director for Choice Hotels.

Good morning, and thank you for joining us today.

the like predictive you be or assist in we'd conference during used begin, results. you certain its call, forward-looking understanding we to that remind this to Before and company statements will Actual results indicated statements, SEC XXQ, you that and affecting filings Form should from for consult company's important and you in the risk the factors forward-looking should XXK differ may materially those other information consider. about company

obligation date, forward-looking update to speak no of we These events publicly today's to circumstances. and subsequent statements reflect them undertake as or

Relations measures can to of reconciliation You earnings posted under a of section. find quarter Investor website first our our press part non-GAAP as our financial which is choicehotels.com on referred remarks release XXXX in at our the

and Officer; our Executive Pat This will will Scott Chief President outlook. morning, quarter third our Financial Pacious, XXXX to discuss and Oaksmith, Officer, results; operating performance speak financial Chief

glad turn Pat. And we'll questions. to remarks, your prepared call our the be Following answer I'll over that, with to

performance you, income of growth. higher quarter XX% and of raising an Thank our us. year-over-year XX% range to yet our EBITDA EPS, morning, adjusted delivered higher you appreciate expected adjusted results. Hotels Choice to We another the full XX% everyone. This by time strong strong year-over-year EBITDA and midpoint drove taking year our resulted our EPS raised net in join guidance. earnings adjusted the We adjusted $X and of Allie, million good

our better-than-expected our growth our projected drive RevPAR unit business which, our model, the to strategy, continued confidence provides expanded us outlook. our of and acceleration combined successful we in performance Through execution the new of versatility growth with ability

record third XXX,XXX increase global rooms an over set of XX% Our for pipeline the a year-over-year. quarter, hotel

compared more brands, meaningful premium revenue Importantly, pipeline XX% means in pipeline the a rooms global which RevPAR our intense represents existing to that in our are our of portfolio.

and global growth, both our accelerated also domestic unit international. We

to of the open our velocity compared year. hotels moving hotels, opening hotels quarter the more pipeline globally in from XX% prior third increase we As the to

increase more traffic X.X% rooms international a this increase The Americas of and brands realized integration key booking our including for increase are new to global the in a third including the year-over-year a led which year-over-year conversion development significant rooms. across A in is across in attracting rates construction Americas in rooms commitments, improvement we Radisson story portfolio. of since the the performance portfolio, intense new quarter to Notably, addition hotel XX% room Radisson net the global brands. in number digital pipeline the growth a X% our XX% net revenue in the increase

are our also in to extended-stay segment. the pleased lead expanding be resilient cyclo We

extended For the extended-stay over our to XX%. we on five in quarters size track and growth of unit are consecutive hotels grown stay rate year-over-year XXX average we with a XX% achieve long-term over by unit have pipeline, annual

longer-term ago, needed under lodging The area. with continues projects construction. Weeks see pipeline, milestone of traction Suites, infrastructure to will open Greater The options. strong the Everhome and key our much XX the new domestic over projects property serve with the Suites booming in providing including Everhome local in construction, hotels of XXX opening domestic extended-stay we Phoenix sixth the celebrated a industries, brand XX

room they the hotel domestic Our driven over contribution Two, higher our of existing to current count proposition be compared system. means our XX% hotels a current average, focus have, franchisees. than average to per rates, XX% value revenue few pipeline domestic higher effective RevPAR One, the is portfolio. portfolio. continues over higher hotels significantly of strategic they our by royalty three, driven premium have strengthened And our a more on to higher on in pipeline represent the by This that revenue-intense factors. hotel than value

our capability moves for and new hotel a Importantly, is the projects conversion franchise pipeline agreements. differentiator rapidly winning through key best-in-class

hotels increase XX prior for fact, period agreements, executed we the the over of period, franchise trailing XX% over a domestic months, year. of same during we the the In conversion the opened same XXX

grew end this the XX% we hotels continue domestic rooms core conversion of our by of our throughout As September, pipeline conversion the driver competency key we a expect And remainder for to be to hotel year-over-year. of growth year.

RevPAR. Turning to

third domestic expectations. the of RevPAR in was prior ahead Our our quarter

in business of the and government trend particularly prior our we discussed continued year-over-year, group the in both in in which of positive normalization travel, the an seeing And our In acceleration travel, strength in verticals. we are addition transient are leisure we growth now the to travel of travel call. on driving renewed transportation signs corporate are further patterns

fourth As and demand our are quarter. we to for to in positive exceeding a incremental our raising the hotels the RevPAR result now returning full year we we delivering and October quarter our third expectations, growth of the and anticipate are outlook

increase we a I'd see and by attracting international our rooms compared in are year-over-year, to strong where opportunity market RevPAR openings. to significant highlighted gain further the international coming franchisee region increase performance to XX% a key EMEA, pipeline years. a over year-over-year, prior delivered a our our share X.X% has we interest. expanded to continue of in strategic like that we X% by In now the increased we turn business. with by in to threefold portfolio And year,

owners hotels. the state-of-the-art to investing awarded Our onboarded our adding to with EMEA direct recently to The agreement France, team franchising portfolio our our maximize profitability. franchisee rooms system we've rooms by Spain, value first ] our direct provide best-in-class we success success. already our just efficiently year-end. run over And be franchise help their Venitude continues approximately for where to businesses we franchising are proposition to XXX fuel agreement in executed our onboarded most Strengthening in tools them by through with we their provide in recently [ our franchisees X,XXX residential

deploying they are help we wherever from turn, their one-stop in franchisees all began month, last a our of successfully for further costs. reduce example, properties platform manage and their operating mobile-friendly For to

existing Relentlessly Hotels, enhancing is hotel industry-leading the choose we why to and expand rate. our franchisee contributes reasons Choice owners our to the to with their value voluntary our bring owners portfolio retention among

again deeply these franchisees efforts the support proud with in are forefront of are their concern relief together impacted and by Hotels our by I'm the express we communities once the for Choice when the owners always communities, disasters. local And want at have and recovery our to that everyone guests family connected been efforts. affected Our to recent came hurricanes. natural I

points repair accommodate our FEMA matching first with were the closely to We and working our and in to emergency impacted families. We to the crews company displaced to for Red campaign have American workers, with partner, launch donate franchisees areas lodging also are members signature Cross. help partnered them rewards their a

increase Choice now rewards million X% to customer At of end, experiences, hotels. prior to aspirational growth program, members, creating compelling to new adding Turning redemption a and our result year. event base. an music such exciting including adding new more program, us Privileges options. expanded And direct is This further XX the quarter our compared sporting we the as

access and luxury rewards to million upscale over around upscale, upper XX world. hotels the have members X,XXX Our now

business revenue the more our into continued delivery and also strengthening to business in Our group segments segments. intense resulted both us expansion transient has

quarter. time, third revenues revenue the with in upper by increased same driven the from X% our Smart in the were up year-over-year group third X% strength At accounts, more we where our by by mid-scale our In quarter, increase the business drove business. strengthened portfolio, supported over we year-over-year an than transient revenues

is we recently that value drive innovation proud all This strong of achievement Magazine's stakeholders. also I'm company list were Companies to our deliver named for our World's testament and to we culture, our where a Best to of seek prioritize XXXX. Time long-term people,

we've sustained positive growth In have and long-term growth positioned RevPAR enhanced proactive our closing, with versatile even momentum environment. domestic we've the the investments We more and profile. Choice to deliver in created current strategic company's along earnings meaningfully value our created, model believe

free growth, Scott? to intense of Officer. will reinvest is turn We revenue returning over tied driving And use of this priority Financial to in our excess initiatives directly shareholders. annually. our the cash our call portfolio. generate attractive growth while brand to I continue particularly the organic cash capital Chief flow our to in now to

good for the outlook discuss our quarter and third our update XXXX. sheet you Pat, on results, of comment everyone. and balance on will our morning, and remainder Today, I allocation Thanks, of capital

of $XXX dependent For the growth in reimbursable revenue strong EBITDA royalty million to our driven third our record excluding XX% This year-over-year. revenue rate and global intense combination properties and more quarter XXXX, revenues, from segments and robust of increased effective and programs. markets, was and growth, a franchised rooms by over non-RevPAR a performance grew to XX% million, managed adjusted $XXX

reached a also increase third earnings per quarter a reporting adjusted share XX% year-over-year. share, per Our record, $X.XX

rate. fee our me key which unit RevPAR growth, include and franchise Let our discuss royalty growth, first for levers performance

domestic quarter, year-over-year. XX% sequentially For our has improved our which domestic the across unit portfolio, X.X% our pipeline by intense, supported mid-scale extended-stay more increased upscale, third by and revenue year-over-year and growth expanded increased

opened through of year openings our and XXX target year-to-date anticipate performance to We year-over-year, hotels September, the the expect achieving of acceleration continue see domestic XXXX. new best since X%. an of We for in XX% growth our to increase a approximately full remainder growth our year

prior in and We third new in starts track, on hotel are an construction over seen the to new the year. hotel increase our openings see construction are pleased quarter have we

and our segments, portfolio all Our brand deliberate performance. franchisee brand are in our strategic is investments delivering evident and which third quarter platform decisions results tools our across capabilities in

upscale pipeline presence segment, rooms First, we upscale our year-over-year. doubling the continue to our in domestic strengthen nearly

X/X openings extended-stay under XXX,XXX rooms XX% over industry the our extended our mid-scale increase has pleased And I by Choice highlighted domestic domestic all system to rooms grew extended-stay rooms with we year-over-year. hotel portfolio we expanded am the domestic in portfolio year-over-year. approximately domestic of economy stay being hotel brands. in by Second, that construction And third, unit a size fastest-growing XX%

our now to Turning performance. RevPAR

exceeded prior portfolio RevPAR Our domestic third quarter segment. expectations performance drove extended-stay from as better-than-expected Radisson Americas our and our we

acceleration quarter basis RevPAR quarter Importantly, into year-over-year. the seen performance for quarter-over-quarter improved fourth the Furthermore, headed domestic our by XX approximately October domestic levels X% points. have RevPAR with we occupancy third growing an of

increasing the to capture capabilities are incremental our generated us the and sales are hurricanes. recent in demand of driving We allowing multiple local country. global regions by demand and

by part down early a year, third and negative in trends. quarter was of the domestic normalizing Much compared it the Debbie calendar August X.X% travel RevPAR was driven prior Hurricane to the While impact ongoing in shifts of in year-over-year.

our led and versus Radisson achieved competitors. X.X% percentage Notably, Radisson RevPAR by segment third increased our growth overall X upscale points upscale nearly upscale the RevPAR which quarter, portfolio STR's gains upscale For share brand outperformed brand, year-over-year. delivered domestic index by our

to range be better-than-expected U.S. third negative to negative RevPAR we the compared and and results, negative expectation X% expect negative quarter and Given between year and prior October and full our our of guidance X.X%. the X% between raising X.X% now are

Turning third to our revenue lever.

source royalty to effective be Our continues also significant of growth. revenue a rate

for domestic $X system an basis quarter over basis. annual effective accelerated incremental points increased rate Our third sequentially X% royalty XXXX million royalties on X of year-over-year. representing approximately to and

full We strategy continue performance increase significant revenue and demonstrates to our franchise growth digits value our This EBITDA. our mid-single growth brand our intense the of our in owners. the royalty enhanced adjusted to the driving portfolio proposition expect rate year to effective drive overall of to in impact positive

higher than the for our portfolio domestic point royalty that average on about open contracts pipeline of have rate to our in are XX rate come. our continued the effective current a hotels. of optimistic in effective upward basis those We In royalty trajectory years

the continue business. platform build to momentum strong of on our We

These Our transaction the program than to and reach doubled our more vendors our quarter, year-over-year fees our the offerings of broader franchisees with volume yielding guests. Increased ancillary credit impressive third card qualified benefit from initiatives. fees expanded particularly has co-branded results. been our in and

X% the year-over-year. card In quarter, credit fact, in grew revenues third

increase Continuing the and the number revenue offer and years our products to believe expand can growth drive that services we we of our is of ahead. in platform And one we key initiatives. business strong this

franchise operating cash XX, including million September the approximately generated net third $XXX of acquisition quarter the ended costs. agreement flow XXXX, months and in million During nine we $XXX

growth, cash our Our returning sheet, with flow, shareholders. while on coupled continues also to us strong to balance our which, capital our allows priorities, capital produce execute allocation including significant in to business well-positioned investing

unchanged. we dividends in in Year-to-date repurchased remaining third business. value at October. of track share million and intend million X.X accretively the to October, We X.X delivering investing shareholders, returned $XX million our our and quarter, position as priorities our of a of further including long record to had million $XXX and over million available of X% by With our capital allocation expand strong repurchases. outsized total representing authorization our share shares cash of liquidity remain $XXX on we through We approximately outstanding cash to count, the end the end of million in $XXX shares build

to now expectations remainder year. turn for I'd of like the the our to

between We are of raising improvement full we end midpoint. year adjusted the our by increased our have XXX EBITDA of RevPAR at the guidance, basis bottom points primarily outlook, to to at reflecting year-over-year the reflecting million. We which increase the now $XXX of million $XXX midpoint expect a our EBITDA XX% compared million, be prior and between $XXX million $XXX adjusted the expectation and

to increasing is earnings $X.XX now an adjusted year-over-year XX% to guidance higher adjusted and lower-than-expected midpoint In at share our share, addition, the which range per and are per between EBITDA the growth expense. due we interest $X.XX

does increased light our outlook stock account XX markets for or of the versatility the capital in other growth earnings any RevPAR attractive demonstrates M&A the deliver company's to continue October to after environment This of of normalizing not model. ability repurchase activity. Our

time, co-brand ability and happy effective growth, we royalty expanded our conclusion, our international rate over all this answer more our questions. from in confident revenue-intense drive maximize hotels time, to continue opportunities Operator? growth we Pat create across realized of expand scale business remain any model. stakeholders of In for and be revenue-generating revenues robust our value organic your will credit deliver versatile markets, and to as and business I card At to

Instructions]. now Ladies question-and-answer will you. the and Thank session. we gentlemen, begin [Operator

Kelley Shaun first The from Bank question America. of comes at

just then timing questions the think going of about what's either lap net remind sort may the on just net about Scott, the of of this, Scott, getting and -- And think I reimbursable importantly, pretty we we us rate Can into with what's this meaningfully timing that? a reclassification can as Radisson I we're reimbursable think run XXXX. you number good side, much and that deal start kicks How but think in help be with accelerated as how to the on or about? some revenues, you on think, a of or more us to Can Pat quarter. we here. piece this of move that

Yes. Shaun. Thanks,

fully the calls, the Radisson prior we're at and beginning we've the in XXXX. As about last talked Choice integrate of platforms really, year able to QX at

some So more ancillary since revenue then, to we opportunity incremental had unlock that streams.

incremental the have million those around quarter around million. bit some we of Really, year, from that little is of that a in $XX quarters traffic programs, reflection more hotels. quarter the to we was our of couple first programs the that third guest for of our our of So of is higher this through in a were seasonality about quarters that third $XX in terms million given of EBITDA of one the largest $XX

of around quarters incremental So about through year, X we're of the first $XX revenue. the million

quarter. year, in the that fourth lap As $XX we in discussed QX. Last and between $X million will million we beginning before, for was those revenues in comparisons around

well should million higher of million of of about system go concert bit further kind between in opportunities kind we incremental $XX as to of to these you forward have other which penetration think EBITDA, outside should and with we're grow size as of QX, grow to a the the being $XX little those the So streams. going quarterly continue revenue we'll have forward as

Great,Scott.

in beginning lap calendar QX until Or it moves add-back that XXXX? it? not does start out as clarify, of piece to the Just you year

same sitting we comparability. item. . reclass full be we'll for in Yes, they'll But line in QX year beginning XXXX of revenues those QX, when reimbursable the still have

comes Baird. next question The of Bellisario from Michael

your flow and statement. CapEx, lines those Just me, in for on for cash thanks hotels and the splitting first own question just

helpful. beyond? are on hotels just expect that's for and capital on XXX% those think remind same today? How to spending are to think too, balance you owned numbers year for that how do be JVs, construction? Can us front many . your the I sheet what you next you many if under will Maybe And context start then helpful hotels. the I some provide owned have

Michael. Sure,

of with hotels a in ones at we So and point under this handful operating XX that time. other have open are construction.

to we've prove Cambria as are our the accelerate of thought the then the capital that past, processes talked sheet brands is our Everhome introduced recycle So to support growing related of and those out use our newer performance to brands growth primarily programs really, balance in and those brands to capital. to

million Cambria. of So at the if longer put bit you for $XXX about a out recycled And little about about $XXX this think million been program, brand, we've Cambria but that. we've it around we've

then process them. in we're launching and these selling new constantly, the So of hotels

those we So as continue will opportunity us, for awaits that opportunities. look to recycling

we of Cambria under hotels to Everhome X brands construction handful construction. that have X JVs are a on today, just under and maybe So the currently and

just that it. you October? on That's business room step-up mentioned And then RevPAR commentary. switching business in you percentage gears nights and a transient? the helpful. in What transient. quantify of maybe are total Got Can group and big your benefit pretty And hurricane your then you group saw

Yes. Thanks, Michael.

I back, outside RevPAR, impacted primarily was X% regions. of of to strength it areas hurricane-driven that was basically understand of step in event. a but related, the think just we variety a sure hurricane We're make October seeing when up not investors was you some want

of a pretty at So Texas, expectations our think regarding England, us also for look Louisiana New if the outperformance those sort you outside performance was I impact those at area, broader segment, as Cambria at The up really, is brand up that itself brand mentioned story a was family was Radisson X.X%. you the X.X%. upscale whole, significant and RevPAR up which Scott states, the of are saw look Radisson the X%

then us. extended continued to has element stay So be which expectations. the strong performer a third the is And really the for segment, upscale segment outperformed our

like basically to back business in of question to the the to a these which return this normalization theme of sort your When But is looked expectation. of to XXXX piece, second transient back sort how it of -- -- the speaks quarter, the of normal the it's almost the at designate seeing, we're much XXXX you kind kind is it's prior impact. are in the a which around primarily hard levels, to look pandemic what

side, leisure which pretty So high total high for now in the and and have given versus group business the business we on reflection, It's leisure Radisson of which XX% drive the for us pretty overall count. travel pretty the our transient rooms a business. was as the able inventory, business because business that is transient growth quarter to percentage in mix the more of a is as a component interesting XX% brands we're in both impressive. is hotel really us

So it key to move forward. us is expected we for a driver us as be for

Thank you. question of The comes . from next Stanley. Grambling Stephen Morgan

you to SG&A generally I on and just bit. be or a think would about touch wanted SG&A just How expense growth as beyond? thinking little overall expenses we XXXX inflation, about

Yes.

the on to our SG&A the this pretty manage ability SG&A the So year with quarter. in front, pleased we're

Our around We're X%. mid-single year, full digits about about the for adjusted up SG&A just was X%.

So we given something growth maintain are continue in mid-single it business, SG&A think we to that can we that digits. scale is a our that

that And over been time. successful so pretty we've at

free thinking on into of there and flow about should have we you growth some -- that into to be of ease Is And a year? touched flow. then Or capital I things A this next the this conversion are follow-up going couple continue you front-loaded that free bit, heading off? of have spend into cash questions anticipating how year? next are but a should guess any little I on guess cash

Yes.

we're flow as as In know, seasonal cash the terms end -- a business. free year of you

to flow flow around cash cash into the we would is year. our expect our XXXX about full conversion year-to-date, So cash that free percentage. for number similar And I a expect -- be X%, free

the quarter. that those ability of some being Just the and we've recycle our as we're million, in we the the are through day, we've and hotels end that already spent invested in a reminder, investing had recycling are capital $XXX brands. that to open where this opportunities we've excludes recyclable growing about have year-to-date, about At the through that fourth the year talked

expect So of start we then working more our of the a similar XXXX. beyond, about full expect be we meaningful we through process, capital. and on million still to should recyclable year for some would but level our probably a capital. planning that XXXX XXXX that We're recycling that seeing And similar pace, $XXX into

net outflow? So just be million, I guess, $XXX clear, investment to year, another into next

it Roughly, . as same this the about should year. be

The next comes David Thank Katz Jefferies. you. at from question

should I move in that know I the of to underspend Or overspend about apologize can through of talk think usually about to an we this, the change? sort flat. end marketing be helpful. we wanted differences color but there but kind getting there if that I . the missed Is be approximately the of funds. would year, timing any the that as year expectation we I

Yes. David. question, for the Thanks

term. For franchisees marketing contractual the our you ensure our these reservation, break our over go breakeven. to more over the around a an had very these every investment we obligation take repayment operating year we of look long obviously and our in and versus if period that is back we've at history, a long-term cycles even But operate to

pretty travel when with needed. couple go hefty surpluses, years, more the pandemic we wasn't ran especially the leisure So if back some to some elevated you last the through marketing of were of

come this And into hefty year so with cumulative surplus. a we've pretty

net expected and that for but year, million surplus. a in deficit surplus this still we $XX that be $XX $XX to So should we're a between year end million, somewhere in million under we're fund the of just

and something long-term we So to may over makes investment, forward. to to us abilities But look usually we're grow sense X-year time, that continuing ensure value investments to that areas provide balancing outlooks which franchisees. to your manage take drive we that capabilities, of in proposition our continue as really our how for overspend going with value that's to on viewpoints to we for

moving group. commensurate noting right though or sort -- some seems X the that as up incrementally if on intuitively, years. strategy And Understood. we're focus about that upscale there And report. my consider with way Is to think we just Or should it's follow-up, focused increasing that? also? to can the that is some I of

Yes, actually than broad-based David, that. it's more

you business group weeks project, together bringing on stay segment, the commercial about it a be team think that's a work If drive X the to ability that's for particular focused on a certainly project, larger and urban in accommodations. as specific The long-stay the hotels well. more located they as need true, segment, spaces are meeting upscale the extended It's might to in markets customer hotels. in mentioned, you

key and So and did real the in But driver. social largest mid-scale there. I footprint religious and of that's fraternal. mid-scale a upper the sort pickup military, group highlight, that see where significant the is mentioned we SMERF pretty our business, education, and in segments, travel a

those those of driver in tend hotels. are groups, sort and still of business. upper stay good mid-scale small but and a mid-scale to our So

more it our much. it's of broad-based total So than Thanks just impacts portfolio. upscale, significant and very amount a

Farley Robin comes UBS. at question next from Your

QX commentary back being Just positive. to about going your RevPAR

a are others November of the weak election because month of being Some calling kind out period.

just came November. maybe compared that about how of visibility. and being extended and of October have to So you you gives cautious do kind second more half But November through others stay in maybe strongly, much into business your December visibility just understanding

Yes.

that you broader we're think are just, look the I So seeing macro, at macro correlated start trends. the trends Rob, with when and

to been the coming back muted kind not is almost it's if X% XXXX months. RevPAR have expected highly macro, which been last And to seeing which travel. less very job, to X new of a When the in. And It's at X%. be GDP rate, look highest levels. consumer in is people number has of I than of a the actually you're quarters. correlates that then high. supply participation sort growth growth, Labor so confidence force It's they

broader segments the for of macro our type our trends and traveler. are So positive pretty

trend-wise it continue we're we we that what year, the is well. as is confidence this will than it on at giving more October look last saw into point books November, for November the Regarding was which month at when November, what us in higher of seeing

talking Okay. then when know growth And of additions if also, growth. said key about involve Great. were in you I don't percent What investing new your money? you

terms to selectively look deal it's we to use our construction of And do that predominantly new at, make system. higher bring those units money, the as intense key money. done. that's help each get key In revenue users the are heavier part into But is sure where strategy construction then of primary really, cost to deals we're of we rated in our

haven't we our hotels use it of use helps per money it's more typically pace. at So above exact tactic customer the bring acquisition key a . revenue faster hotels disclosed where as amount that and we project, we midscale a in but on higher intense

percent just amount percent key kind a has money key invest money units, is that in words, growth Would levels, talking per dollar total you deal, you're say that of of trended on a deals of which kind of up about to growing of as the but you compared bit? previous total much in generally little other not so

construction given environment been money. the been competitive and Yes, new just has the of an in increase environment, there -- there tougher key has use the

our projects that hotels. in is of see based on dollars. the revenue intensity usually around Obviously, money You will of revenue our the sized that choice. is can bring Most that key to those

where the supply historically. we we previously long we back we So muted use been just scales, has because just expect on chain elevation our has to cycle need increased really a that's But had but we given that experience. that term deals growth, been key up there more have moved would more an simply money of money are, to an key more of seen maybe the we've to be think where it

. from comes question The next Lizzie at Dove Sachs. Goldman

I picture guess, XXXX. question, bigger looking into

been going term of in know the think of I the year forward? level, growth. outlook, early this about there's I'm How kind benefit benefits some past high synergies EBITDA of you've do that's those kind and the High XXXX underspend single-digit longer curious I think especially several year. terms and talked Radisson factors this you talked I been in about that fees. termination with that some for about of think a kind different I

realization XXXX Lizzie. company, outlook practice. spoke We'll realization in premium that. normal that for of our as about, RevPAR hotels pipeline pipeline the of Yes. next in think key look when really our the what's Thanks, February It's kind and you of at I it's give are we And XX% the sitting the that of three areas. kind of

card, growth is grow growth mentioned then our which continuing in the are Second key that finally, some RevPAR credit of a will be that the Scott things of ancillary really international drivers international revenue third of And in our business. and do that us the think And like. to partnerships outside These are coming EBITDA we've from growth that years. of doubled business, strong environment. had we of I for domestic covering our things the business, growing sort that -- the RevPAR quarter. are those and

That it. [indiscernible] follow Was sense. more of pressures I Studio Got that makes of up, been Is to especially kind stay seen anything that of just seeing area. on competitive wanted you've given in then terms going there? things, And we've side the there extended Hilton, in

conversion new our The at and both brands have we significant. No, Suburban construction I MainStay four you conversion. opportunities look both for in when segments, are those think and

the our crested on we recently. think construct seeing we I suburbans And XXX open brands. are new

going projects we've a right is brand. the that significant proven a extended and ways for look proven been The and robust WoodSpring and the the new to economy And at country you investors exit. WoodSpring model prototype stay actually able now. operating very all looking that in brand, X/X of proven on are If a brand a construction in for WoodSpring demonstrate

and in interest seeing is that we're stay on company ability in more all teams. front something key that's brands to for of and stay the So our top our of of actually a our focus

next The question Joseph comes from JPMorgan. at Greff

RevPAR before, stream we longer-term and I question or answered of in that about algorithm, But growth have it net a excesses and kind your growth. consequence similarly of deficits, about we been the of rooms net ways. closely drivers you different think asked or reimbursable growth has your match do and growth fee it longer-term EBITDA how any and think compounding if

algorithm, kind So to I speaking think in of Joe? the terms -- of

if how want we Longer beyond the specific, were kind in this to of at put to and growth net for G&A if the not match those were growth of EBITDA Y, look RevPAR growth of at blender three drivers? does X, adjustments you we Before if term closely be more stuff. to right, look necessarily reimbursable growth year, Z, fee but of the them making we [indiscernible]

Yes.

lion's revenue. So obviously, our royalties still share is the the of

still we line particularly to more royalty top to and EBITDA. still grow royalty all drive So RevPAR still metric terms last that system RevPAR of in are even since those of revenues size different as algorithm rate allowing you have the fees of will a be rooms types remains versatile to growth, acquisition, of RevPAR more over room the our the have, so significant years several will important more rate But for become that and certainly, lift of revenues. our business that us and the our Radisson rooms ancillary you in environments, intact. But leverage the the ancillary opportunities

you ones is is we're more the we system XX% than there more exiting. upstream, valuable as just as bringing hotels I'll remind thing the move a are that multiplier the are into other The effect

I an kind you at side. year, should But as you higher-rated scale blocks get build chain in the you of the the look through if think that those on for still So this building levers. segments, growth there accelerator choice can royalty still be

royalty and Scott as unit at up growth about we and international co-brand quarter Yes, is I units platform the mentioned, is that particular, real then are being in was synergy here that up. RevPAR you Radisson X%. through some effectively to revenue Joe, and partnership going to procurement opportunity we the and co-brand to that, think up this do focus have. flow add realized, I expect said, Then of that those procurement the continuing was X% that, as decline think the you Scott rate saw. offset And look that be now opportunities effective we

from factor ancillary into flow the is international ultimately help streams. I RevPAR a unit add think it's you those growth to component. going So of sort through revenue And that to that then

comes question HSBC. Meredith next at from The Jensen

the sort point international, sense may and also as look business you world, end could whatever towards us out or an of if makes -- it and in years in chain and year scale just you was last of hoping And your look so. in breakout might the give what sort and chain look ideal I how of out leisure or play your say, idea things of versus, the revenue-intense might more scale like strategy?

going to segments Yes, we operate. trends at that long-range our and we the impact the look are where business Meredith,

is this of in a one retirements. older of Let's wealth retirement people of five retired. Americans the XX% by with XX number towards country start end held and trend by the be in will and the decade,

our things, a that road brands one time. lot a continuing driver events our to brands, for the they're within mile mid-scale people are that has the and traveler travel that of for for for prioritizing hotels a highway lot net discretionary the research and a X,XXX that worth, our we other second operate increase things. see And We're a So events of trips doing siting of variety is of other music over we're about be seeing travel exit. of in that sporting spending in. traveling and key in a we has particularly

have as So was it's being stop go do see want number type where trips to a road there robust it look way. a the are jobs status. that work, travelers that to X being the at while as moved of not ago, remote along be to years I driver. We continue X, long-term of and

travel. of people when so week have in can they flexibility day And the

a we extended So when growth plus us that our at then to as of long-term American see the infrastructure XXX today, And pipeline. segment. you in stay investments driver if extended at that over are -- be have going XXX that on segment that look we alone, XXX segment, look continue rebuilding key finally, And stay hotels the the manufacturing a are of for be country to expect do to in expecting the driver you well. of we to

point, look will portfolio these that years. drive feel well you as to some the very demand in significant to So positioned like X years, lodging of out advantage macro tailwinds in pretty X our take of we your next is

should what on agreement and on structure potentially in And international Yes. into really kind the in there franchise seeing those Asia growth market you're and of type business and have we of the place. we general? of national the depends follow-up in the Radisson the for and X fee about quick pipeline think other areas, outside It adds in

franchise of well agreements. some you're are as markets aware, master our So

at rate. So Nordic India, Japan, we countries, is franchising royalty the Brazil, we're franchise doing in particular, look you higher Where though where agreements. master effective are if those direct get usually

by Radisson our There's brands Radisson of kind what's And and larger those in might and that hotels And Canada. in American interest brand, sign we're the us. Latin we green hotels generally France and as about so for EMEA on Inn front seeing they're mentioned, the to is in than what market. new Americas, around in the Caribbean Spain. domestically. here And then We've above we grow exciting see in continues Park added is, there's in hotels excitement

domestically. units a see perspective, unit to generally from those intensity higher be So than revenue what we tends the of

question next Truist at comes Patrick from Securities. Scholes The

year, that organic for the certainly something demand between sort organic hurricane of improvement the break point How we that point that which When that think there's extra full in guidance will When mentioned. Good raised -- year, quarter. tailwinds. there about the then some rest of out would be the greater point your you've morning. impact positive sounds the there's of RevPAR hurricane fourth you certainly for down you for versus break and

Yes.

looked really positive, in X%. that's really and up a QX, I seeing think, that's thing broad-based Patrick, quarter-over-quarter, the we're occupancy in we've at a increase

So as everybody knows, occupancy still the leads rate.

opportunity do that's franchisees muted be that with we as key going going higher, expect have the is to rate So an fourth growth, we driver RevPAR supply for that, continue with an follow to into move to the occupancy a quarter.

the when impact stay for out probably that impact. renovations year think we It points the about as sort hurricane to into I not numbers, like. of be break the But bake will you I try certainly hurricane do. it think impacting maybe and easy XX XX, to full impact, when to of families the need of relocate our is it's length basis

And so by strength of that get a you of We're we're you take the segments impacted seeing hurricane. are to, that seeing at that the strength at if the and region. guiding that we overall pickup outside outside look normally look

story. a this So just is not hurricane impact

us which direction, direction. move We to positive are a seeing RevPAR gave the guidance the trending confidence moving in the right in

Brent question Monte from next Barclays. comes The at

that third I ancillary $XX can circle out legacy break the want quarter. just back and to million to unlock, in Radisson you The between the Choice?

both, Yes. It's of Brent. a mix

of it bringing as as of realignment part was well So about, talked that our we in. as contracts the Radisson the

is but did So it's across really only Where to Radisson services portfolio. we've obviously if the that, probably XX% choice, there. opportunity allocation unlocking seen you XX% an a not larger more sell

but also are those system. roll we've expanded of out We've streams properties acquired, the property that been instance, not only choice. that to into management one For segments our Radisson able to for revenue additional

which stay management our had proprietary previously. using our system, all now extended So of Advantage brands are Choice they for now, not

to both. broader-based ways of our streams little it's mix to additional we but through we're that a realign grow bit the system. only were of But able revenue to contracts a not So find excited those

Great. And on follow-up RevPAR. question then just a

and was Looking for it at down it STR year-over-year. that about mid-scale the those RevPAR guys you basis like upper segments was points mid-scale, report looks for XXX The flat.

if curious you you a I'm in so sequentially. And segments, those underperformance there's if for know got two saw reason then -- things that that I why and better

of or third the versus that STR sort seeing and did anything the would if into the be drag you're -- quarter fourth from slip relative case some still why might of be not what seeing quarter sort that So seeing?

regions are the Brian, and they're it's where located midscale No. located a of our really in. hotels factor

Where as by well where not we significant perform index. a did of regions If region. we you STR the as have our those regions numbers break out amount inventory, under

. So to a what as story that. it's primarily regional drove

The Wasiolek next Dan Morningstar. from question comes at

So just wanted more Act. the bit a dig to little Infrastructure into

a You Interstate. you mile that hotels referenced have X,XXX within of

the states the those And if wondering to next to those of have, in few incremental believe quantification you I funds locations some think hotels -- offer states begun here. can allocate of have from I'm maybe benefit if that coming and wondering years. whole kind over so, how room of seen any And you've Thanks, if just Just this stays? night about Dan. infrastructure the some you for kind

you the out. mean, certainly roll to bill starting is As mentioned, I infrastructure

And construction quickly opinion Our different will is is What we've into phased about they of states can that X% today. XX year-over-year up more overall our throughout states. across as be how states really are top there's the hotels country. the in are those most of country have the received and kind allocate spending rollout XX located that actually XX% advanced dollars of seen top more really, a about But projects. infrastructure some

our So stay we a good the particular in are starting we've extended increased where product. there. seen into to oil see through in We've also business markets. got some decent come that share

will more demand of out to that capture So that so as come infrastructure. regional drive. much we see positioned to It it that are certainly, But increased we are that, we rolling regionally, -- because starting will see play be it's that well be through. won't spending a

Okay.

kind about of the it main of XXX both? that -- versus think being of of extended-stay interstate maybe broader the is we currently the you have should the kind beneficiaries hotels that's is so a portfolio as kind And or combination near

it combination really of both. a be Yes, will

times, segment. many type the stated is stay perfect while occasion, for of that definitely undersupplied it's product extended we've As an state

So the there's supply. Xx demand than the

there projects, hotels, are our extended-stay aren't all as next and to travel mid-scale So occasions. certainly which in those that net beneficiaries product of we these located see economy

hotels. site oriented design be other would occasions of of engineers, room on are the and every product, but couple might I incremental tend that to extended-stay the there's a in night those not variety more time, the And transient . be and architects that and the may come the in folks full work Dan, And occur staying managers while crews project weeks. say benefit

question next Christopher Stathoulopoulos from the And Susquehanna. comes at

or remarks? year Just this again want alluded to sure size to to XX on go from I I have right XX and calendar in up impact which hurricanes you the you the impact back election quantify the full so as think to make start here, and RevPAR, shift, to did prepared bps this far

Yes.

shift. had think had think we I less weekends. I QX, the calendar in two sorry, -- we mean, QX, I

a drag, So us that's Christopher. a about basis point factor that XX by impacted

the meaningful elections shifts have those drag in up a be markets over on the tomorrow. actually impact Wisconsin, like these seen does you pickup the it the Minnesota, will election, have at so tailwind we calendar quarter. And on, quarter obviously, So on make do -- full in look the well. you hopefully, When election But -- business when are drive that year. as a

well. seen have that we some as of So

other events. markets to is had The that travel are not thing fan seeing I broad-based base I think they traveling the of amount people before. to college for realignment mentioned normally we're sporting significant is is the traveling a of football driving

the same So at Texas occurred that and around Austin, the time FX Georgia and race.

business. so not to Michigan and fan Arbor and picks play local market fan When the travel, Oregon goes to like Ann bases. they're bases up And Austin those a really

well. be Taylor driver to a do that the Miami, So goes we as to are expecting that, pickup you that's When a in market sporting sort music at and events to see going level local Swift of continue business.

in we're and actual and So going sporting well. of seeing travel. we that music more that is is a the in event do the trend research, to the as it think seeing driven continue We're numbers it consumer

with group color you on leisure for Okay. in seasonally higher. a policies as domestic, high-level that? beyond RTO we're to -- reason some sounds transient at solid this could We you perhaps business, if on still your point, side, -- bias anything that It process domestic business a expect international, we a 'XX Anything I thoughts. about put . group But should thinking piece 'XX. And the downside you're will, think speaking, there leisure line segments, here planning point is based the in grinding realize follow-up, transient, as if generally the about have finer do just a like we for a as just

Yes.

you U.S. I back back the I step generally at and RevPAR just to we're the it's grows look Scott, and the think going think RevPAR And if way the all X%. X% up macro, at the in between in quarter. look XXXX our -- you right, if X%,

well at macro step year. But I rate correlates of sort the that when that effect. you're usually long-term looking to get correlation lag look a normal guidance growth a GDP as the for we that's our I back So at give generally a has that RevPAR normal and mentioned, and we'll February. trends, if to I

in GDP months. RevPAR see when the you pickup not grows, the coming but immediately, So

that American some this important both manufacturing, that growing. and helping long-term going the of drive That's X GDP going so well. grow. driver the the drivers, markets. economy really is reshoring construction of have is the think continuing And business bill, is quarters is the do then We ultimately to projects in as for to last business extended I because which long-term and That fact mentioned to grown stay the infrastructure certain means segment, demand key for other a it's travel be

our tend XXXX we'll So look February. to give And those that I said, as well are the macro we at guidance for with in RevPAR. things correlate

Pacious further no closing the for have Pat comments. back to I over We turn questions. call will

Thank for Great. operator. time this Thanks, morning. everyone, you, again, your

our We Have when year will of rest February full talk fourth a quarter our day. to great . results. announce XXXX you we your again in and

participating, conference your please ask and concludes that today. you We your this we gentlemen, and for lines. for Ladies thank you disconnect