Marriott and Choice Report Q3 Earnings
Skift Take
Choice Hotels’ Q3 results led to a stock uptick, while Marriott’s mixed report and lower Q4 guidance saw its shares decline despite share buybacks and a new cost-cutting plan.
The DJIA fell 258 points while Nasdaq was down 60, the S&P 500 was down 16 points, and the 10-year treasury yield was down .05 to 4.31%. Lodging stocks were lower. SVC traded down to another new low, while SOHO and AHT both gave back some of their gains from last week, down -14% and 7%, respectively.
Marriott and Choice Hotels both reported 3Q results, with investors bidding up CHH while taking profits on MAR. CHH was up $1.49, and MAR was down $4.14 on the day. The report from MAR was a bit noisy, with a $19 million operating guarantee reserve taken on the 2016 Starwood Hotels acquisition and an $11 million litigation reserve. If you back that out, the operating results were in line, but their 4Q guidance was below the Street's. MAR bought back 4.5 million shares for $1 billion in 3Q and $200 million in the month of October. They expect 2024 capital returns to total $4
