Hello, this is Andy.
This page contains promotional content.
Have you started making plans or reservations for your summer vacation?
During Golden Week, domestic travel demand and inbound tourism seemed to be booming, but overseas travel demand still appears to be sluggish. It’s likely that the weak yen is playing a major role...
If you're hoping to get the best deals on overseas travel, I recommend booking early.
It seems that this year's summer vacation will offer a long 9-day break for many people, from August 9 to August 17.
Now then, the Q1 FY2025 earnings report for Choice Hotels International has just been released, so I’d like to share that with you.
The Choice Hotels group includes several familiar brands, even here in Japan:
The past performance of Choice Hotels International is as follows:
Although the business was temporarily impacted during the COVID-19 pandemic, it has since recovered rapidly.
During the pandemic, the stock price fell below the 200-week moving average, but it found support at that level and subsequently rebounded.
As expected, the 200-week moving average is a key technical indicator to watch!
◯ Q1 2025
This time, both revenue and earnings per share (EPS) missed expectations. Neither reached the pre-announced forecasts.
As a result, the stock price has not rebounded and remains at the same level as during the Trump Shock decline—unlike Hilton or Marriott, which have been performing well.
◯ CEO Patrick Pacious’s Comment
“Choice Hotels delivered record quarterly financial performance and outperformed in RevPAR, underscoring the success of our growth strategy,” said CEO Patrick Pacious. “Our unique positioning has allowed us to outperform peers, gain market share, and emerge stronger even during periods of economic uncertainty. Today, with a meaningfully enhanced brand portfolio—including more diverse growth paths, a more resilient customer profile, and a greater presence in the extended-stay segment, which is resistant to economic cycles—we have established an even stronger foundation for short-term stability and long-term growth.”
While the CEO’s comments convey a positive tone, compared to other hotel chains, the overall situation gives the impression that growth may have plateaued.
Given the strong recovery from the COVID-19 pandemic, it seems that growth for this mid-market player is taking a brief pause.
At this point, I think this stock may be one to postpone purchasing for now.
