Skift Take
Choice Hotels recently saw its U.S hotels continue to perform roughly 10% above 2019 levels in revenue per available room. Its executives believe that trend may roll on next year.
Choice Hotels reported a softening in domestic revenue per available room in the second quarter - a trend other hotel companies have also noted in recent weeks. But Choice said some of the weakness was offset by demand for its extended-stay brands in the U.S. and upscale brands overseas.
Choice Hotels lowered its full-year 2024 revenue per available room [RevPAR] growth outlook to a range of -3.5% to -1.5% — down from its previous forecast of flat to 2% growth.
Patrick Pacious, Choice's president and CEO, pointed to a "normalization" after the post-pandemic boom. However, the company maintained its adjusted EBITDA guidance range of $580 million to $600 million for the full year.
Choice Hotels executives spoke optimistically about next year's potential during an earnings call Thursday.
"We did see in the U.S GDP growth last quarter and that generally translates into a positive RevPAR [revenue per avai