IHG and Choice Hotels Report Earnings
Skift Take
IHG and Choice were optimistic about the rest of the year, though Choice moderated its outlook. The lodging sector expanded with Kessler Collection and others breaking ground.
The DJIA rose 254 points while the Nasdaq was up 190, the S&P 500 rose 33 points and the 10-year treasury yield was up .10 to 4.37%. Lodging stocks were modestly higher. VAC was the big winner, up 11%, while PEB rose 6% on some insiders, including the Chairman, who filed with the SEC that they bought a bunch of stock this week.
As we continue with this 1Q25 earnings season that does not want to seem to end, IHG Hotels & Resorts is getting applause for a strong report. They reported 3.5% growth in U.S. room revenue, a rebound from a drop of -1.9% last year. RevPAR was up 3.3%, and they said they are seeing continued room revenue growth going into the second quarter. Choice Hotels, on the other hand, reported a weaker-than-expected quarter even with higher-than-expected RevPAR. Some would say adjusted EBITDA was in line, but their stock price suggests investors were seeing a miss. They did lower expectations for the rest of the year but kept the
