Choice Hotels International, Inc. (NYSE:CHH) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET

Company Participants

Allie Summers - Senior Director and Investor Relations
Pat Pacious - President, Chief Executive Officer & Director
Scott Oaksmith - Chief Financial Officer

Conference Call Participants

Dany Asad - Bank of America
Stephen Grambling - Morgan Stanley
David Katz - Jefferies
Daniel Hogan - Baird
Robin Farley - UBS Securities
Joe Greff - JPMorgan
Patrick Scholes - Truist Securities
Brandt Montour - Barclays
Dan Wasiolek - Morningstar
Alex Brignall - Redburn

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Choice Hotels International's Second Quarter 2024 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 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 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 second quarter 2024 earnings press release, which is posted on our website at choicehotels.com under the Investor Relations section.

This morning, Pat Pacious, President and Chief Executive Officer, will speak to our second quarter operating results. While Scott Oaksmith, Chief Financial Officer, who will discuss our financial performance and 2024 outlook. Following our prepared remarks, we'll be glad to answer your questions.

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

Pat Pacious

Thank you, Allie, and good morning, everyone. We appreciate you taking the time to join us. I'm pleased to report that in the second quarter, Choice Hotels drove our adjusted EBITDA to $162 million, our adjusted EPS, 5% higher year-over-year, and raised our full year adjusted EPS guidance.

Over the past several years, we have created a stronger, more versatile company with multiple earnings drivers and a proven growth strategy. The increased versatility of our business model, combined with projected unit growth acceleration, provides us the confidence to achieve our expected adjusted EBITDA growth of 9% at the midpoint of our outlook range for 2024 even as the domestic RevPAR environment has started to normalize.