Choice Hotels approves new incentive plan

Published 15/05/2025, 16:54
Choice Hotels approves new incentive plan

Choice Hotels International Inc . (NYSE:CHH), a hospitality company with a market capitalization of $5.88 billion and currently trading at $127.56, has received shareholder approval for its 2025 Long-Term Incentive Plan (LTIP), as revealed in a recent 8-K filing with the SEC. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value assessment. The LTIP, which was adopted by the Board of Directors on February 27, 2025, subject to shareholder approval, went into effect on Thursday, May 15, 2025.

The newly ratified 2025 LTIP will be overseen by the Board’s Compensation Committee, which consists of independent directors, and provides for the issuance of stock options, stock awards, stock appreciation rights, and stock units to the company’s employees, officers, and directors. This move aligns with the company’s track record of shareholder-friendly policies, including maintaining dividend payments for 22 consecutive years and management’s aggressive share buyback program, as highlighted by InvestingPro data. The plan includes 1,000,000 shares of common stock, additional shares remaining from the 2017 LTIP as of April 21, 2025, and shares connected to awards from the 2017 LTIP that are later forfeited or cancelled.

At the 2025 Annual Meeting, shareholders also voted on several other key proposals. The election of eleven directors to serve for the upcoming year was confirmed, with the directors slated to hold office until the 2026 Annual Meeting of Shareholders or until their successors are elected and qualified. Additionally, an advisory vote on executive compensation received shareholder approval, as did the ratification of Ernst & Young LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025. A shareholder proposal advocating for a simple majority vote requirement in the company’s organizational documents was also approved.

The full text of the 2025 LTIP was included as Exhibit 10.1 in the 8-K filing, which provides additional details of the plan as outlined in the Annual Meeting’s proxy statement.

This report is based on the official SEC filing by Choice Hotels International Inc. The company maintains impressive gross profit margins of 89.36% and demonstrates strong financial health. For deeper insights into Choice Hotels’ performance metrics and growth potential, including 8 additional exclusive ProTips, check out the comprehensive research available on InvestingPro.

In other recent news, Choice Hotels International Inc. reported its first-quarter results for 2025, revealing an adjusted earnings per share (EPS) of $1.34, which fell short of the anticipated $1.38. The company also reported revenue of $333 million, missing the forecast of $348.15 million. Despite these misses, Choice Hotels achieved a 4% increase in adjusted EBITDA to $129.6 million and a 5% rise in adjusted EPS compared to the previous year. The company also noted strong growth in its domestic revenue per available room (RevPAR) and extended stay segments. Looking ahead, Choice Hotels has provided guidance for full-year 2025 EPS between $6.90 and $7.22. The company continues to focus on strategic investments, including new product innovations and an expanded loyalty program, to drive future growth. Additionally, the company is optimistic about its international expansion and has highlighted its versatile business model as a key factor in navigating current challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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