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Choice Hotels International Announces Quarterly Dividend, Reflecting Strong Market Position

NORTH BETHESDA, Md., May 15, 2024 /PRNewswire/ -- In a recent announcement that reinforces its commitment to shareholder returns, Choice Hotels International, Inc. (NYSE: CHH), a global frontrunner in the hotel franchising sector, has declared a cash dividend for investors of its common stock. The board of directors confirmed a dividend payout of $0.2875 per share, indicating the company's continued financial strength and optimism about its future prospects. This dividend will be made available to shareholders who are on record by July 1, 2024, with the payment date following on July 16, 2024.

About Choice Hotels International

One of the mammoth players in the global lodging arena, Choice Hotels International (NYSE: CHH) boasts an expansive footprint with nearly 7,500 hotels which constitutes over 630,000 rooms spread across 45 countries and territories. With a diverse assembly of 22 brands under its banner, spanning full-service upper upscale to midscale, extended stay, and economy segments, the company prides itself on fulfilling the myriad of accommodation needs of travelers. Whether it's for business or leisure, Choice Hotels offers options that cater to a variety of budgets and preferences, thereby creating immense value for both its franchise owners and its shareholders.

The company is not only at the forefront of the hospitality industry but is also a pioneer in customer loyalty, as evidenced by its award-winning Choice Privileges rewards program and a suite of co-branded credit card options. Both of these offerings are designed to enable members to accumulate reward nights and access personalized perks rapidly and effortlessly. To learn more about Choice Hotels and its array of branding options, please visit www.choicehotels.com.

Understanding Forward-Looking Statements

The discourse surrounding the future of any company often includes "forward-looking statements," particularly within contexts like press releases, where projections about the company's future performance are put forth. Such statements tend to involve terminology like "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," or similarly future-oriented language. While it's natural for company management to base these statements on both their current beliefs and the information available to them at the time, it's crucial for investors and stakeholders to understand that these assertions by no means serve as guarantees of future performance.

These forward-looking declarations may encompass anything from projected revenues, operational costs, EBITDA, adjusted EBITDA, earnings, debt, and even financial strategies such as dividend payments, stock repurchase plans, the company's occupancy rates, RevPAR (Revenue Per Available Room), and overall liquidity. However, these statements are not immune to uncertainties and risks, both known and unknown. Overreliance on such predictions can lead to misleading expectations about the company's actual future performance.

There are numerous factors that could lead to tangible outcomes differing significantly from what has been envisioned in the forward-looking statements. These include, but are not limited to, shifts in the broader economic conditions both domestically and abroad, changing dynamics of consumer confidence and spending, the evolving travel, transient, and group business landscapes, and decisions regarding the disbursement of future dividends and stock repurchases. Additionally, global health crises such as pandemics or other disease outbreaks could severely impact the hospitality industry, especially the travel market in the United States.

Legal and regulatory changes relevant to travel, lodging, or franchising sectors could also cast an effect, alongside fluctuations in foreign currency values and the inherent operational risks in the travel and hospitality industries. Brand desirability fluctuations, changes in franchise agreements, the challenge of keeping abreast with technology in marketing and reservations systems, and the potential expansion or contraction of the franchise system are all critical determinants.

Furthermore, the hotel industry is subject to demand and supply dynamics. The company’s execution of its growth strategy, inflation impacts, cybersecurity threats, environmental concerns, and franchisee-related issues like hotel closures or financial strains are equally significant factors. With extended international operations comes an additional layer of exposure to risks, alongside imminent labor shortfalls. Legal disputes and adept management of financial obligations, including debt incurred from significant acquisitions like Radisson Hotels Americas, remain as some of the profound risks faced by Choice Hotels International.

These risk elements among others are comprehensively dissected in the company's regulatory filings with the U.S. Securities and Exchange Commission, specifically in the Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q where applicable. Therein lies a commitment from the company to transparency, ensuring that all potential and existing shareholders have the essential information required to make informed decisions.

Finally, it's worth noting that forward-looking statements are subject to change, and the company is under no obligation to revise or publicly update any such statements except as required by law. This serves as a cautionary reminder of the ever-shifting landscape of the business world and the myriad of factors that can influence a company's trajectory.

About Forward-Looking Statements:

This press release contains forward-looking statements, defined under the Private Securities Litigation Reform Act of 1995. Using language that refers to future events or conditions, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," or similar terms, authorizes the identification of these statements. These forward-looking disclosures are not grounds for historical facts but rather are based upon the current beliefs, assumptions, and expectations of the company's management, taking into account information currently to hand.

They address projections of a range of financial metrics including company revenue, expenses, both EBITDA and adjusted EBITDA, profit levels, debt, the capacity to settle existing financial debts, paying out dividends, buying back company shares, and additional operational elements such as hotels' occupancy and open statuses, Revenue Per Available Room (RevPAR), and liquidity position. Such statements are made in good faith, based on present circumstances, but it is crucial for stakeholders to understand these are not guarantees of future performance.

Forward-looking statements are fraught with known and unknown risks, as well as uncertainties and other factors that may bring actual results, performances, or achievements to deviate materially from those implied in the statements. Hence, excessive reliance on these projections should be tempered with an understanding of their speculative nature.

Risks and Uncertainties:

A variety of factors contribute to the disparities between actual outcomes and those posited by forward-looking statements. These include fluctuations in economic conditions both within the U.S. and internationally. The company's success in realizing the anticipated long-term rewards of significant acquisitions like Radisson Hotels Americas is uncertain; these outcomes could take longer to materialize or may not be as substantial as predicted.

Consumer behavior is also unpredictable, with variations in spending habits and travel desire greatly impacting business in the transient and group sectors. The future of dividends and stock repurchase volumes is hard to determine, whereas global health crises such as pandemics can significantly disrupt the hospitality industry, particularly in the travel segment in the U.S.

The company is also subject to legislative and regulatory changes in the industries it operates within. The perceived value of the company's brands could sway, impacting their attractiveness to both hotel operators and consumers. Keeping up with technological advancements is a necessity, especially in critical areas such as marketing and reservation systems.

Other risks lie in the company's franchise expansion ability, where new hotel development, financing, and ownership come with inherent risks. Emerging businesses within the company’s portfolio could also pose unique challenges, while the hotel room market's demand-supply balance continues to oscillate. The execution of the company's long-term strategy and the adoption of alternative growth pathways might also face obstacles. Considerations such as inflation rates, cybersecurity issues, environmental sustainability concerns, property financing and ownership risks, and international operational risks add layers of complexity. Labor market dynamics, litigation outcomes, and effective debt management, particularly subsequent to notable acquisitions, are all crucial aspects that could shape the company's future.

In conclusion, while Choice Hotels International has outlined an optimistic future reflected in its dividend announcement and growth strategy, both the company and shareholders must navigate the intricate web of risks and uncertainties intrinsic to the hospitality sector. Detailed information on the risks highlighted and others that could potentially affect the company's course can be accessed through filings with the U.S. Securities and Exchange Commission. It is an exercise in prudence for stakeholders to keep abreast of these discussions, outlined in documents such as the Annual Report on Form 10-K and the company's Quarterly Reports on Form 10-Q.

Corporate Contact:

For further questions or inquiries regarding these forward-looking statements or the financial policies of Choice Hotels International, please refer to the official press release sourced from Choice Hotels International, Inc.