Choice Hotels International, Inc. (NYSE:CHH) Q3 2022 Earnings Conference Call November 7, 2022 8:30 AM ET

Company Participants

Allie Summers – Investor Relations Director

Pat Pacious – President and Chief Executive Officer

Dom Dragisich – Chief Financial Officer

Conference Call Participants

Shaun Kelly – Bank of America

Dori Kesten – Wells Fargo

Michael Bellisario – Baird

David Katz – Jefferies

Robin Farley – UBS

Patrick Scholes – Truist Securities

Joe Greff – JPMorgan

Dan Wasiolek – Morningstar

Brandt Montour – JPMorgan

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Choice Hotels International's Third Quarter 2022 Earnings Call. At this time, all lines are in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions and please also note today's event is being recorded.

At this time I would like to turn the conference call over to Allie Summers, Investor Relations Director for Choice Hotels. Ma'am, you may begin.

Allie Summers

Good morning and thank you for joining us today. Before we begin, we would 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 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 third quarter 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 third quarter operating results and financial performance. Following Pat and Dom's remarks, we will be glad to take your questions.

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

Pat Pacious

Thanks, Allie, and good morning everyone. Our third quarter results and the acquisition of the Radisson Americas business are a significant leap forward in the evolution of both Choice Hotel's competitive position and future growth potential. For 11 consecutive quarters, our RevPAR growth has outperformed the hotel industry confirming that our strategy of focusing our investments and growth on RevPAR accretive hotel segments and locations is working. Our future growth is now enhanced by the addition of the Radisson Americas brands to our best-in-class business delivery engine, and we now expect to drive an incremental $80 million in recurring adjusted EBITDA from this business unit upon its full integration in early 2024. We are excited about the new growth vectors these brands will provide. Our strategy allowed us to achieve these remarkable operating results, invest in a strategic acquisition and return over $230 million to shareholders through our share repurchase program in the third quarter, representing nearly 4% of shares outstanding.