With domestic U.S. demand softening – and a new, slightly lower earnings forecast – Choice Hotels executives were eager on Wednesday to talk up their push to diversify internationally and how the company is becoming less dependent on U.S. market cycles.
Highlights of the Second-Quarter Earnings Call:
New forecast and weak second quarter: The company expects revenue per room available (RevPAR), in the United States, to be between a decline and flat by 2025. Prior forecasts were for a decline between 1% and a 1% gain.
The company said that the change was due to “a changing macroeconomic background.”
The domestic RevPAR dropped 2.9% from the previous year, in part because of the timing and comparison to a spike in eclipse-related tourism a year earlier.
The two biggest headwinds for the industry are government and international inbound travel. The two headwinds facing the industry are international inbound and government travel.
