The U.S. hotel industry continued to perform well during the third quarter despite slowing employment growth and tepid GDP. Choice Hotels International (CHH), operator of brands such as Comfort Inn and Econo Lodge, saw its domestic revenue per available room (RevPAR) rise 5.8% year over year in the quarter. RevPAR is a key industry metric that is calculated by multiplying a hotel’s average daily room rate (ADR) by its occupancy rate. Choice Hotels’ occupancy levels improved by about 120 basis points from the prior year amid more demand for rooms from business and leisure travelers. The theme that the hotel industry weathered the third quarter economic slowdown in the U.S. well was seen at Choice Hotels’ competitors Marriott (MAR) and Hilton (HLT), where RevPAR rose by 4.2% and 5.8%, respectively year over year. Still, in spite of the gains in RevPAR and occupancy, Choice Hotels’ third quarter earnings only matched Wall Street profit forecasts calling for $0.72 a share. Further, the rate of occupancy and RevPAR growth was slower than experienced in the second quarter. The company also tweaked its full year earnings guidance to $2.18-$2.20 a share from $2.18-$2.22 a share previously. When asked if Choice Hotels was feeling the effects of a slowing U.S. economy, president and CEO Steve Joyce downplayed any impact. TheStreet’s Brian Sozzi reports from New York.
More from Video
Amid the Selling, Here's the Big Question Now
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
One Tweet Pulls the Rug Out From Under the Indexes
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.