Investor Presentaiton
BUSINESS UPDATE
FINANCIAL SUMMARY & HIGHLIGHTS
OUTLOOK
APPENDIX
Choice Hotels maintains a disciplined approach to capital allocation and is committed
to driving long-term shareholder value
1
Growth
Initiatives
Increase the entire platform's
value, and maintain Choice Hotels'
competitive strength with
discretionary investments for
organic growth
A
2
•
EXAMPLES:
Comfort transformation
• New brand launches (e.g., Clarion Pointe,
Everhome Suites), strategic redesign/refresh
(e.g., Suburban Studios, Country Inn) and
prototypes (e.g., Cambria, Comfort, Sleep Inn)
Marketing and distribution technology
(e.g., new revenue management capability)
•
K
3
M&A
Disciplined approach to potential
M&A opportunities based on
our ability to:
•
•
•
•
Improve profitability for existing
franchisees
Accelerate revenue growth
EXAMPLES:
Radisson Americas (2022)
Capital
Management
Opportunistically return excess cash to
shareholders through dividends and share
repurchases
First lodging company to return to
pre-pandemic dividend levels
WoodSpring Suites (2018)
Suburban (2005)
Econo Lodge and Rodeway (1990)
Clarion (1986)
EXAMPLES:
Returned over $655 million to
shareholders through the share
repurchase program, representing 10% of
shares outstanding'
Even with continued organic and inorganic investment as well as capital returns, the company is still below its target leverage ratio of 3x to 4x
1. Over the trailing twelve months ended June 30, 2023, the company repurchased 5.6 million shares of common stock totaling over $655 million, representing 10% of the shares outstanding as of June 30, 2022.
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