These past two financial quarters have been among the worst ever for the hotel industry, as travel has largely shut down due to the COVID-19 pandemic. Choice Hotels International (NYSE: CHH) has managed the downturn better than most with the stock price down 9.7% for the year compared to the industry average, which is down 15%.
While conditions have gradually improved, travel is still way down. So, what does that mean for the hotel chain moving forward? Is Choice Hotels a buy?
The numbers aren't pretty. Choice Hotels saw revenue in the second quarter drop 52% to $151 million compared to the second quarter of 2019. While the company cut operating expenses 32% to $141 million in the quarter, operating income was down 92% year over year to $7.8 million. Overall, the hotelier posted a net loss of $2.4 million in the quarter, down 103% from a year ago.
Source Fool.com