UPDATE 1-Choice Hotels Q3 beats; sees Q4 EPS below Street view

* Q3 adj EPS $0.68 vs est $0.57

* Q3 rev $183.8 mln vs est $177 mln

* Sees Q4 RevPAR up 7-8 pct

* Ups FY10 adj EPS view to $1.77-$1.79 vs est $1.70

* Sees FY RevPAR up 2 pct

Oct 27 (BestGrowthStock) – Choice Hotels International Inc’s
(CHH.N: ) third-quarter profit (Read more your timing to make a profit.) beat market expectations as
revenue per available room rose, but the company forecast
fourth-quarter earnings below Wall Street estimates.

Choice, a pure play hotel franchisor, expects adjusted
fourth-quarter earnings of 38 cents a share, below analysts’
expectations of 41 cents a share, according to Thomson Reuters

Revenue per available room (RevPAR) is expected to grow 7-8
percent for the period.

For the third quarter, the company posted net income of
$40.5 million, or 68 cents a share, compared with $32.8
million, or 55 cents last year.

Analysts were expecting earnings of 57 cents a share.

Domestic systemwide revPAR — a measure of hotel-industry
performance based on occupancy and room rates — rose 7.8
percent in the quarter. RevPAR grew for the first time in two
years in the second quarter.

Budget hotel operators like Choice, which benefited amid
the recession, have lagged more luxury oriented peers like
Marriott International Inc (MAR.N: ) as the lodging recovery has
set in.

Shares of the company, which franchises brands like
EconoLodge and Comfort Inn, have risen about 5 percent over the
last three months. Marriott shares have risen 12 percent by

Choice shares closed at $36.31 Wednesday on the New York
Stock Exchange.
(Reporting by Abhishek Takle in Bangalore; Editing by Maju

UPDATE 1-Choice Hotels Q3 beats; sees Q4 EPS below Street view