Choice Hotels International Reports 2021 Second Quarter Results

ROCKVILLE, Md. - Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, today reported its results for the three months ended June 30, 2021.

"The strategic investments we have made in launching and enhancing our brands, strengthening our marketing and reservation systems, and bolstering our platform capabilities drove impressive second quarter results that further positioned the company to increase our share of travel demand in the years to come," said Patrick Pacious, president and chief executive officer, Choice Hotels. "Our goal is not to return to our 2019 performance levels, but rather capitalize on current and future investments to fuel our long-term growth in key strategic segments and drive our performance to new levels."

Highlights of second quarter and year-to-date 2021 results include (note that RevPAR and financial metrics are compared to 2019¹):

• Domestic systemwide revenue per available room (RevPAR) change outperformed the total industry by 20 percentage points, declining 1.1% for second quarter 2021 compared to the same period of 2019, while occupancy levels increased by 20 basis points from second quarter 2019.
• The company's June 2021 domestic systemwide RevPAR increased 4.5% from June 2019.
• The trend of monthly improvement continued in July, with July 2021 RevPAR increasing approximately 15% from July 2019, driven by occupancy levels of 70% and average daily rate (ADR) growth of 10%.
• From May through July 2021, the company surpassed its all-time single day revenue record on four separate days and recorded 14 of the highest revenue performing days in the company's history. In addition, the company achieved the strongest revenue performing Memorial Day and Independence Day weekend in its history, and set the record for the single highest revenue, ADR and RevPAR performing day ever for the company on July 24, 2021.
• The company awarded 200 domestic franchise agreements year-to-date through June 30, 2021, a 32% increase compared to the same period of 2020. The company's domestic franchise agreements for conversion hotels increased by 43% year-to-date through June 30, 2021, compared to the same period of 2020. The company awarded 111 domestic franchise agreements in second quarter 2021, a nearly 20% increase compared to the same period of the prior year.
• Second quarter net income increased 15% to $85.9 million from second quarter 2019, representing diluted earnings per share (EPS) of $1.53.
• Second quarter adjusted net income, excluding certain items described in Exhibit 7, increased 2% to $68.3 million from second quarter 2019, and adjusted diluted EPS were $1.22, an increase of 3% from second quarter 2019.
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter were $111.8 million, a 9% increase from second quarter 2019.
• The company's Board of Directors reinstated the dividend and share repurchase program in May 2021. In June and July 2021, the company returned over $14 million back to shareholders through a combination of cash dividends and share repurchases.

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