Choice Hotels Q2 Revenue Fails To Satisfy Estimates Despite 4.3% RevPAR Growth

Choice Hotels International, Inc. CHH released better-than-expected earnings number for the second quarter driven by 4.3 percent revenue per available room (RevPAR). However, the key metric failed to boost revenue to the expected levels.

The company reported net income of $38.8 million and EPS of $0.68 for the three-month period April to June. This was $0.01 a share higher than the Street analysts' expectations of $0.67 a share.

Choice Hotel's revenue grew 10 percent to $241.8 million thus missing the analysts' predictions of $245.03 million.

CEO Stephen Joyce reacted, "Demand for our brands remains strong and we will continue to invest in programs designed to drive more reservations through our central channels, improve guest loyalty and improve the value of our brands in an effort to drive incremental business to our franchisees."

Moving ahead, the company expects EPS of $0.78 for the third quarter. For the full year, it sees adjusted EPS in the range of $2.38-$2.43. Street analysts are looking for EPS of $0.82 for the third quarter and $2.32 for the full year.

On Tuesday, the stock advanced $0.81 or 1.68 percent at $48.93 at time of writing.