Choice Hotels Repurchases More and More Shares
Skift Take
Choice Hotels' earnings exceeded low expectations, highlighted by aggressive share repurchases that historically benefit the stock.
The DJIA was up 172, Nasdaq was down 30, the S&P 500 was flat and the 10 year treasury yield was up .03 to 4.49%. Lodging stocks were lower with earnings getting a thumbs down today. CHH was down -5% despite a mixed opinion by analysts, while SVC was down -6% to a new low after their report.
Expectations were low going into Choice Hotels’ earnings report so the results were better than estimates and definitely better than feared. Our most positive takeaway is that CHH became very aggressive on share repurchases again, historically a good sign for the stock. In 1Q24 they only bought 400,000 shares for $60.6 million. So far in 2Q, they have bought back 1.1 million shares for $136 million. They still have 5.3 million shares left in their authorization.
Ashford Hospitality Trust’s earnings report was deemed to be below estimates with the reason, given their pre-announcement, being the
