Report
Dan Wasiolek

Choice's brand advantage is performing well in a healthy travel environment.

Like its peers, Choice is benefiting from a healthy travel environment that led to growth in revenue per available room, or revPAR, of 3.1% in the first quarter and prompted the company to increase its 2018 forecast to 1.5%-3.5% from 1%-3% previously and our 2% estimate. Beyond the cooperative landscape, the company's brand intangible asset remained intact, the source of its narrow moat. This was displayed by its pipeline reaching 914 hotels, up 26%, a signal that third parties remain interested...
Underlying
Choice Hotels International Inc.

Choice Hotels International is a hotel franchisor. The company franchises lodging properties under the following proprietary brand names: Comfort Inn?, Comfort Suites?, Quality?, Clarion?, Clarion Pointe?, Sleep Inn?, Econo Lodge?, Rodeway Inn?, MainStay Suites?, Suburban Extended Stay Hotel?, WoodSpring Suites?, Cambria? Hotels, and Ascend Hotel Collection?. The company's primary segment is the hotel franchising business. The company's domestic franchising operations are conducted through direct franchising relationships while its international franchise operations are conducted through a combination of direct franchising and master franchising relationships.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Dan Wasiolek

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