Choice Hotels International, Inc. (CHH) Q4 2023 Earnings Call Transcript

Choice Hotels International, Inc. (NYSE:CHH) Q4 2023 Earnings Conference Call February 20, 2024 10:00 AM ET

Company Participants

Allie Summers - Senior Director and Investor Relations
Patrick Pacious - President and Chief Executive Officer
Scott Oaksmith - Chief Financial Officer
Dominic Dragisich - Executive Vice President, Operations and Chief Global Brand Officer

Conference Call Participants

Shaun Kelley - Bank of America
Michael Bellisario - Robert W. Baird
Stephen Grambling - Morgan Stanley
Robin Farley - UBS Securities
Joe Greff - J.P. Morgan
Meredith Jensen - HSBC
Brandt Montour - Barclays

Allie Summers

[Abrupt Start] -- our remarks as part of our fourth quarter and full-year 2023 earnings press release, which is posted on our Web site at choicehotels.com under the Investor Relations section.

This morning, Pat Pacious, our President and Chief Executive Officer will speak to our fourth quarter operating results and full-year highlights; while Scott Oaksmith, Chief Financial Officer, will discuss our financial performance and 2024 outlook. Joining us also today for the Q&A portion of the call is Dom Dragisich, Executive Vice President, Operations and Chief Global Brand Officer. Following our prepared remarks, we'll be glad to answer your questions.

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

Patrick Pacious

Thank you, Allie, and good morning, everyone. We appreciate you taking the time to join us. 2023 was a year of accelerating growth. We delivered record financial performance as we exceeded the top end of our guidance with a 13% year-over-year increase in adjusted EBITDA to $540.5 million, a 16% year-over-year increase in adjusted EPS to $6.11, and unit growth ahead of our expectations led by our successful strategy of adding hotels that generate higher royalties per unit. In 2023, we significantly expanded our rewards program, increased our geographic reach, unlocked new value to our platform capabilities, and created step function growth through the rapid completion of the Radisson Americas' integration.