Choice Hotels Reports Q1 2014 Net Income of $18.9M, a 22% Increase Over Prior Period; RevPAR up 5.6%
April 29, 2014 5:29am
ROCKVILLE, Md., April 28, 2014 -- Choice Hotels International, Inc. (NYSE: CHH) today reported the following highlights for the first quarter of 2014:
"We are very pleased with the first quarter performance of our franchising business which exceeded our expectations and resulted in a 15 percent increase in franchising EBITDA and an expansion of our franchising margins due to our strong RevPAR growth and disciplined cost management," said Stephen P. Joyce, president and chief executive officer. "We are optimistic that we are well positioned to benefit from strong consumer and developer demand for our brands."
In the first quarter of 2014, the company entered into a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the disposal of these hotels met the definition of a discontinued operation since the operations and cash flows of these components will be eliminated from the on-going operations of the company and the company will not have significant continuing involvement in the operations of the hotels after the disposal transaction.
At March 31, 2014, the company had disposed of two of the three owned hotels and expects the third hotel to be sold during the year ended December 31, 2014. The new owners of the two MainStay Suites hotels have executed new franchise agreements with the company and we expect that following the sale of the third hotel the new owner will also execute a new franchise agreement.
The company's consolidated statement of income for the three months ended March 31, 2014 and the company's consolidated balance sheet as of March 31, 2014 reflect these three company-owned hotels as discontinued operations. In addition, the company's statement of income for the three months ended March 31, 2013 has been reclassified to account for these operations as discontinued. Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.
The company's consolidated 2014 outlook reflects continued growth of the company's core hotel franchising business, continued investment in and expanded revenue contribution from the SkyTouch division and the sale of the three company-owned Mainstay Suites hotels described below as well as the following assumptions:
Choice will conduct a conference call on Monday, April 28, 2014 at 10:00 a.m. EDT to discuss the company's first quarter 2014 results. The dial-in number to listen to the call is 1-800-591-6942, and the access code is 70683172. International callers should dial 1-617-614-4909 and enter the access code 70683172. The conference call also will be Webcast simultaneously via the company's Web site, www.choicehotels.com. Interested investors and other parties wishing to access the call via the Webcast should go to the Web site and click on the Investor Info link. The Investor page will feature a conference call microphone icon to access the call.
The call will be recorded and available for replay beginning at 2:00 p.m. EDT on Monday, April 28, 2014 through Monday, May 5, 2014 by calling 1-888-286-8010 and entering access code 19637446. The international dial-in number for the replay is 1-617-801-6888, access code 1963746. In addition, the call will be archived for approximately one-year and available on www.choicehotels.com via the Investor Info link.
Tags: choice hotels,
SkyTouch Technology is a division of Choice Hotels International, Inc. that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company.
Additional corporate information can be found on the Choice Hotels International, Inc. web site, which may be accessed at www.choicehotels.com.
Contact: David White, Senior Vice President, Chief Financial Officer & Treasurer
Contact: Scott Carman, Director, Public Relations
Choice Partners with Seaview Inn for Opening of Cambria Hotel in Newport, Rhode Island
Choice Hotels Partners with Weintraub Real Estate Group to Develop New Cambria Hotel in Calabasas, California
Choice Hotels Reports Q1 2017 Net Income of $28.7 Million Compared to $21.2 Million Q1 2016
Choice Hotels Comfort Hotel Brand Embarks on Aggressive U.S. Growth with 56 Properties Opening in 2017
enVision Hotel Management Debuts enVision Hotel Boston-Everett, the City's First Hotel in Seven Decades
Choice Hotels Honors its Top Hoteliers with the 2017 Platinum and Gold Hospitality Awards
Lieben Group, LP, Nivea Hospitality and Choice Hotels Open Doors to New Prototype Sleep Inn Hotel in Galion, Ohio
Choice Hotels Appoints Dominic Dragisich as Chief Financial Officer
Choice Hotels Reports Q4 Net Income of $31.8 million and $139.4 million for Full Year; Q4 Domestic RevPAR Increased 5%
Choice Hotels Appoints Brian Quinn Vice President of Franchise Development
Choice Hotels Signs Development Agreement with GVK Enterprises for Five Hotels in Greece
Travel is Worth It: Choice Hotels Reveals 2017 Travel Outlook
Choice Hotels Reports Q3 2016 Net Income of $47.6 million, a 15% Increase Over 2015; Domestic RevPAR Up 4.5%
Choice Hotels Reports Q2 2016 Net Income of $38.8 million Compared to $35.8 million in Same Period 2015
Summer Travel Spotlight: What to Expect from American Travelers this Season
Choice Hotels Transitioning Leadership Roles; CFO Leaving, COO Promoted
Choice Hotels' Sleep Inn Brand Unveils Latest Evolution of Prototype
Choice Hotels International Reports First Quarter 2016 Results; Domestic RevPAR up 1.2%
Choice Hotels International Reports Fourth Quarter and Full Year 2015 Results; Domestic RevPAR up 4.3%
Out With the Old And In With the New Year: Choice Hotels Reveals 2016 American Travel Outlook
Please login or register to post a comment.