Choice Hotels International, Inc. (NYSE:CHH) Q3 2023 Earnings Call Transcript

Brandt Montour: Okay. Thanks so much.

Scott Oaksmith: If you think about just the combination of that marketing and reservation fund that I know we’ve talked to a lot of investors and a lot of analysts about. I mean, you’re effectively taking what is a $600 million marketing and reservation funds on both sides of the equation, combining that through probably some synergy there as well. So you’re effectively sitting in a position where you can deploy well over $1.2 billion of marketing and reservation capability to drive traffic into these hotels. So in addition to what Pat’s saying, where what we’re seeing at Choice is every economy product that’s coming into the portfolio today is driving 20% more revenue versus what’s leaving the portfolio, you are going to be able to actually drive even further performance in those brands as well as our two white space segments in upscale and an extended stay. So that’s a huge complement to the transaction as well.

Brandt Montour: That’s really helpful. Actually, one more for me, if you don’t mind, the CapEx in the quarter looks like it stepped up a little bit quarter-over-quarter and sort of, I guess, it looked like a little bit higher than the last several quarters. Anything in there that you want to highlight one-time or otherwise?

Scott Oaksmith: Yes. We do have some one-time costs around. We’re actually about ready to relocate our office – corporate offices down the street here. So effective December 1st, we’re moving. So we’ve had some elevated CapEx related to the leasehold improvements on the new space.

Brandt Montour: Got it. Thanks so much, everyone.

Operator: Thank you. And at this time, we have no further questions. Please proceed.

Patrick Pacious: Well, thank you, operator, and thank you, everyone, again, for your time this morning. We’ll talk to you again in February when we announce our fourth quarter and full year 2023 results. Have a great day.

Operator: Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.