Choice Hotels International, Inc. (NYSE:CHH) Q4 2022 Earnings Conference Call February 15, 2023 10:00 AM ET

Company Participants

Allie Summers – Senior Director-Investor Relations

Pat Pacious – President and Chief Executive Officer

Dom Dragisich – Chief Financial Officer

Conference Call Participants

Dany Asad – Bank of America

Michael Bellisario – Baird

Robin Farley – UBS

Stephen Grambling – Morgan Stanley

David Katz – Jefferies

Dori Kesten – Wells Fargo

Brandt Montour – Barclays

Joe Greff – JPMorgan

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Choice Hotels International’s Fourth Quarter and Full Year 2022 Earnings Call. At this time all lines are in a listen-only mode.

I will now turn the conference over to Allie Summers, Investor Relations Senior Director for Choice Hotels.

Allie Summers

Good morning, and thank you for joining us today. Before we begin, we’d like to remind you that during this conference call, certain predictive or forward-looking statements will be used to assist you in understanding the company and its results. Actual results may differ materially from those indicated in forward-looking statements, and you should consult the company’s Forms 10-Q, 10-K and other SEC filings for information about important risk factors affecting the company that you should consider. These forward-looking statements speak as of today’s date, and we undertake no obligation to publicly update them to reflect subsequent events or circumstances.

You can find a reconciliation of our non-GAAP financial measures referred to in our remarks as part of our fourth quarter and full year 2022 earnings press release, which is posted on our website at choicehotels.com under the Investor Relations section.

This morning, Pat Pacious, our President and Chief Executive Officer; and Dom Dragisich, our Chief Financial Officer, will speak to our fourth quarter and full year operating results and financial performance. Following Pat and Dom’s remarks, we’ll be glad to take your questions.

And with that, I’ll turn the call over to Pat.

Pat Pacious

Thanks, Allie, and good morning, everyone. We appreciate you joining us. 2022 was a landmark year for Choice Hotels. We delivered step function growth while successfully closing the most significant transaction in our company’s history and further accelerated our long-term strategic plan. Our distinct growth strategy drove our full year 2022 adjusted EBITDA 19% higher than the prior year and 28% higher than full year 2019. We expect this momentum to carry into 2023 and beyond as we continue to grow our brand portfolio with hotels that generate higher royalties per unit, and we leveraged the new capabilities we have built to improve the profitability of each franchise.