Choice Hotels: Strong FY2024 Earnings, But I Don't Buy The Guidance
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Choice Hotels (CHH) reported strong earnings for FY2024 with a 16% increase in net income and a 22% rise in EPS. However, the guidance for 2025 appears overly optimistic due to potential revenue declines from reduced Canadian travel to the U.S. caused by a weak CAD dollar and tariff threats.
March 12, 2025 | 9:30 am
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Choice Hotels reported strong FY2024 earnings with significant increases in net income and EPS. However, the 2025 guidance may be too optimistic due to potential revenue declines from reduced Canadian travel, influenced by a weak CAD dollar and tariff threats.
The strong earnings report for FY2024 is overshadowed by concerns over 2025 guidance. The weak CAD dollar and tariff threats could reduce Canadian travel to the U.S., impacting CHH's revenue. This could lead to a 0.5% revenue decline in 2025, making the guidance seem overly optimistic.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100