ROCKVILLE, Md., April 29, 2013 -- Choice Hotels International, Inc.,
(NYSE: CHH) today reported the following highlights for the first
quarter 2013:
- Franchising revenues increased 4% to $59.5
million for the three months ended March 31, 2013 from $57.3 million for the same
period of 2012. Total revenues increased 6% to $136.9
million for the three months ended March 31, 2013 compared to the
same period of 2012.
- Domestic royalty fees for the three months ended March 31, 2013 increased $2.0 million to $44.3
million from $42.3 million
for the three months ended March 31, 2012,
an increase of 5%.
- Domestic system-wide revenue per available room ("RevPAR")
increased 4.6% for the three months ended March
31, 2013 compared to the same quarter of the prior year
as occupancy and average daily rates increased 100 basis points and 2.3
percent, respectively.
- Domestic unit and room growth increased 1.7 percent and 0.8
percent from March 31, 2012,
respectively.
- The effective royalty rate increased 5 basis points to
4.39% for the three months ended March
31, 2013 compared to 4.34% for the same period of the
prior year.
- Initial and relicensing fees for the three months ended March 31, 2013 increased $1.2 million or 49% to $3.8 million from the same
period of the prior year.
- The company executed 83 new domestic hotel franchise
contracts for the three months ended March
31, 2013 compared to 64 new domestic hotel franchise
contracts in the same period of the prior year, a 30% increase.
- The company entered into a multi-faceted strategic
marketing alliance with Bluegreen Corporation which will
add 21 Bluegreen Vacation Club® Resorts in top vacation
destinations to the company's Ascend Hotel Collection.
- Domestic relicensing and contract renewal transactions
increased from 49 contracts during the three months ended March 31, 2012 to 69 in the
current period, a 41% increase.
- The number of worldwide hotels under construction, awaiting
conversion or approved for development as of March
31, 2013 was 476 hotels representing 37,977 rooms.
- Earnings before interest, taxes, depreciation and
amortization ("EBITDA") was $32.6 million
for the three months ended March 31, 2013,
compared to $33.1 million
in the same period of the prior year. The first quarter 2013 EBITDA
results reflect certain one-time costs related to the company's recent
corporate headquarters relocation as well as additional investments in
alternative growth strategies.
- The effective income tax rate for the three months ended March 31, 2013 was 25.8%
compared to 33.9% for the same period of 2012.
- Diluted earnings per share ("EPS") for first quarter 2013
were $0.26 compared to $0.34 for the first quarter of
2012. EPS for the first quarter of 2013 reflect $7.7
million of additional interest expense compared to the
prior year reflecting the financing transactions entered into during
the second and third quarters of 2012 in conjunction with the payment
of the $600 million
special cash dividend on August 23, 2012.
- The company launched SkyTouch Technology, a new division
that develops and markets cloud-based technology products to help
industry-wide hoteliers improve their efficiency and profitability.
"Our development results continued to build on the momentum
that started last year, increasing by 30% over the same period of the
prior year," said Stephen P. Joyce,
president and chief executive officer. "We are also encouraged by our
RevPAR results which still reflect a strong mix of both occupancy and
average daily rate increases. We remain optimistic that our core hotel
franchising business will continue to improve and we are excited about
our new alliance with Bluegreen Corporation and the launch
of our new SkyTouch Technology initiative."
Use of Free Cash Flow
The company has historically used its free cash flow (cash
flow from operations less capital expenditures) to return value to
shareholders, primarily through share repurchases and dividends.
Dividends
The company did not pay dividends during the three months
ended March 31, 2013 as
the company's regular first quarter dividend was paid in December 2012. The company's
current quarterly dividend rate per common share is $0.185, subject to declaration
by our board of directors.
Share Repurchases
The company did not repurchase any shares of common stock
under the share repurchase program during the three months ended March 31, 2013 but has
authorization to purchase up to an additional 1.4 million shares under
this program. We expect we will continue to make repurchases under our
share repurchase program in the open market and through privately
negotiated transactions, subject to market and other conditions. No
minimum number of share repurchases has been fixed. Since Choice
announced its stock repurchase program on June
25, 1998, the company has repurchased 45.3 million
shares of its common stock for a total cost of $1.1
billion through March 31,
2013. Considering the effect of a two-for-one stock
split in October 2005,
the company has repurchased 78.3 million shares through March 31, 2013 under the share
repurchase program at an average price of $13.89
per share.
Other
Our board of directors previously authorized us to enter into
a program which permits us to offer financing, investment and guaranty
support to qualified franchisees as well as to acquire and resell real
estate to incent franchise development for certain brands in strategic
markets. At March 31, 2013
and December 31, 2012,
the company had approximately $69 million
and $68 million
outstanding related to this program, respectively. Over the next
several years, we expect to continue to opportunistically deploy
capital pursuant to this program to promote growth of our emerging
brands. We expect these advances to range between $20 million and $40 million per
year, however, the amount and timing of the investments will be
dependent on market and other conditions. Notwithstanding this program,
the company expects to continue to return value to its shareholders
through a combination of share repurchases and dividends, subject to
market and other conditions.
Balance Sheet
At March 31, 2013,
the company had gross debt of $871.3
million and cash and cash equivalents totaling $140.2 million resulting in net
debt of $731.1 million.
At December 31, 2012, the
company had gross debt of $855.3 million
and cash equivalents totaling $134.2
million resulting in net debt of $721.1
million.
At March 31, 2013
and December 31, 2012,
the company had outstanding mezzanine financing, real estate
investments and sliver equity investments totaling $69 million and $68 million, respectively
pursuant to its program to offer financing and investment support to
incent franchise development for the Cambria Suites brand in strategic
markets. These investments are reported in other current assets and
other assets on the company's consolidated balance sheet.
Outlook
The company's second quarter 2013 diluted EPS is expected to
be $0.45. The company
expects full-year 2013 diluted EPS to range between $1.87 and $1.91. EBITDA for
full-year 2013 are expected to range between $206
million and $210 million. These estimates include the
following assumptions:
- The company expects net domestic unit growth to increase by
approximately 1.5% in 2013;
- RevPAR is expected to increase approximately 4% for the
second quarter of 2013 and increase between 4.5% and 5.5% for full-year
2013;
- The effective royalty rate is expected to increase 3 basis
points for full-year 2013;
- All figures assume the existing share count;
- An effective tax rate of 30.8% and 30.6% for the second
quarter and full-year 2013, respectively;
- Our EBITDA outlook for full year 2013 reflects additional
expenses related to the company's recently announced SkyTouch
Technology initiative. The company expects to deploy additional
resources towards this growth opportunity and as a result expects to
incur operating expenses in 2013 not contemplated in the company's
previous outlook ranging between $6
million and $8 million for investment in the
infrastructure of this division including business development, sales
and marketing and other costs as well as continued software development
expenditures related to the division's technology related products and
services.
Conference Call
Choice will conduct a conference call on Monday, April 29, 2013 at 10:00 a.m. EDT to discuss the
company's first quarter 2013 results. The dial-in number to listen to
the call is 1-800-884-5695, and the access code is 85035046.
International callers should dial 1-617-786-2960 and enter the access
code 85035046. 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
Information page will feature a conference call microphone icon to
access the call.
The call will be recorded and available for replay beginning
at 12:00 p.m. EDT on Monday April 29, 2013 through Monday, May 6, 2013 by calling
1-888-286-8010 and entering access code 97633732. The international
dial-in number for the replay is 1-617-801-6888, access code 97633732.
In addition, the call will be archived and available on www.choicehotels.com via the
Investor Info link.
About Choice
Hotels
Choice Hotels
International, Inc. franchises over 6,200 hotels, representing
more than 500,000 rooms, in the United States
and more than 30 other countries and territories. As of March 31, 2013, 395 hotels,
representing more than 30,000 rooms, were under construction, awaiting
conversion or approved for development in the United States.
Additionally, 81 hotels, representing approximately 7,000 rooms, were
under construction, awaiting conversion or approved for development in
more than 20 other countries and territories. The company's Comfort
Inn, Comfort Suites, Quality, Sleep Inn,
Clarion, Cambria Suites, MainStay Suites, Suburban Extended
Stay Hotel, Econo Lodge and Rodeway
Inn brands, as well as its Ascend Hotel Collection
membership program, serve guests worldwide.
SkyTouch Technology is an initiative of Choice Hotels International, Inc.
that develops and markets cloud-based technology products to help
industry-wide hoteliers improve their efficiency and profitability.
Additional corporate information can be found on the Choice Hotels International, Inc.
web site, which may be accessed at www.choicehotels.com.
Forward-Looking Statements
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Generally, our use of words such as
"expect," "estimate," "believe," "anticipate," "will," "forecast,"
"plan"," project," "assume" or similar words of futurity identify such
forward-looking statements. These forward-looking statements are based
on management's current beliefs, assumptions and expectations regarding
future events, which in turn are based on information currently
available to management. Such statements may relate to projections of
the company's revenue, earnings and other financial and operational
measures, company debt levels, ability to repay outstanding
indebtedness, payment of dividends, and future operations, among other
matters. We caution you not to place undue reliance on any such
forward-looking statements. Forward-looking statements do not guarantee
future performance and involve known and unknown risks, uncertainties
and other factors.
Several factors could cause actual results, performance or
achievements of the company to differ materially from those expressed
in or contemplated by the forward-looking statements. Such risks
include, but are not limited to, changes to general, domestic and
foreign economic conditions; operating risks common in the lodging and
franchising industries; changes to the desirability of our brands as
viewed by hotel operators and customers; changes to the terms or
termination of our contracts with franchisees; our ability to keep pace
with improvements in technology utilized for reservations systems and
other operating systems; fluctuations in the supply and demand for
hotels rooms; and our ability to manage effectively our indebtedness.
These and other risk factors are discussed in detail in the Risk
Factors section of the company's Form 10-K for the year ended December 31, 2012, filed with
the Securities and Exchange Commission on February 28, 2013 and our
quarterly reports filed on Form 10-Q. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
Statement Concerning Non-GAAP Financial Measurements
Presented in Exhibit 8
EBITDA, franchising revenues and franchising margins are
non-GAAP financial measurements. This information should not be
considered as an alternative to any measure of performance as
promulgated under generally accepted accounting principles in the
United States ("GAAP"), operating income, total
revenues and operating margins. The company's calculation of these
measurements may be different from the calculations used by other
companies and therefore comparability may be limited. The company has
included an exhibit accompanying this release that reconciles these
measures to the comparable GAAP measurement. We discuss management's
reasons for reporting these non-GAAP measures below.
Earnings Before Interest, Taxes, Depreciation and
Amortization: EBITDA reflects earnings excluding the impact of
interest expense, tax expense, depreciation and amortization. Our
management considers EBITDA to be an indicator of operating performance
because it can be used to measure our ability to service debt, fund
capital expenditures, and expand our business. EBITDA is a commonly
used measure of performance in our industry. In addition, it is used by
analysts, lenders, investors and others, as well as by us, to
facilitate comparisons between the company and its competitors because
it excludes certain items that can vary widely across different
industries or among companies within the same industry.
Franchising Revenues and Margins: The company reports
franchising revenues and margins which exclude marketing and
reservation revenues and hotel operations. Marketing and reservation
activities are excluded from revenues and operating margins since the
company is required by its franchise agreements to use these fees
collected for marketing and reservation activities. Cumulative
reservation and marketing system fees not expended are recorded as a
liability on the company's financial statements and are carried over to
the next year and expended in accordance with the franchise agreements.
Cumulative marketing and reservation expenditures in excess of system
fees collected for marketing and reservation activities are recorded as
a receivable on the company's financial statements. In addition, the
company has the contractual authority to require that the franchisees
in the system at any given point repay the company for any deficits
related to marketing and reservation activities. Hotel operations are
excluded since they do not reflect the most accurate measure of the
company's core franchising business. These non-GAAP measures are a
commonly used measure of performance in our industry and facilitate
comparisons between the company and its competitors.
Choice Hotels,
Choice Hotels
International, Comfort Inn, Comfort Suites,
Quality, Sleep Inn, Clarion, Cambria Suites,
MainStay Suites, Suburban Extended Stay Hotel, Econo
Lodge, Rodeway Inn, Ascend
Hotel Collection and SkyTouch Technologyare
proprietary trademarks and service marks of Choice Hotels International.
©2013 Choice Hotels International, Inc. All rights
reserved.
Choice
Hotels International, Inc.
|
|
|
|
|
|
|
Exhibit
1
|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31,
|
|
|
|
|
|
|
|
|
|
Variance
|
|
|
|
|
|
2013
|
|
2012
|
|
$
|
|
%
|
(In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalty
fees
|
|
|
|
$
49,736
|
|
$
47,853
|
|
$ 1,883
|
|
4%
|
Initial
franchise and relicensing fees
|
|
3,777
|
|
2,528
|
|
1,249
|
|
49%
|
Procurement
services
|
|
|
3,950
|
|
3,315
|
|
635
|
|
19%
|
Marketing
and reservation
|
|
|
76,440
|
|
70,929
|
|
5,511
|
|
8%
|
Hotel
operations
|
|
|
|
956
|
|
978
|
|
(22)
|
|
(2%)
|
Other
|
|
|
|
|
2,013
|
|
3,566
|
|
(1,553)
|
|
(44%)
|
Total
revenues
|
|
|
136,872
|
|
129,169
|
|
7,703
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
26,916
|
|
24,349
|
|
2,567
|
|
11%
|
Depreciation
and amortization
|
|
|
2,175
|
|
2,017
|
|
158
|
|
8%
|
Marketing
and reservation
|
|
|
76,440
|
|
70,929
|
|
5,511
|
|
8%
|
Hotel
operations
|
|
|
|
875
|
|
809
|
|
66
|
|
8%
|
Total
operating expenses
|
|
|
106,406
|
|
98,104
|
|
8,302
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
30,466
|
|
31,065
|
|
(599)
|
|
(2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME AND EXPENSES, NET:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
10,770
|
|
3,117
|
|
7,653
|
|
246%
|
Interest
income
|
|
|
|
(644)
|
|
(337)
|
|
(307)
|
|
91%
|
Other
(gains) and losses
|
|
|
(710)
|
|
(2,003)
|
|
1,293
|
|
(65%)
|
Equity
in net loss of affiliates
|
|
|
141
|
|
55
|
|
86
|
|
156%
|
Total
other income and expenses, net
|
9,557
|
|
832
|
|
8,725
|
|
1049%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
20,909
|
|
30,233
|
|
(9,324)
|
|
(31%)
|
Income
taxes
|
|
|
|
5,386
|
|
10,236
|
|
(4,850)
|
|
(47%)
|
Net
income
|
|
|
|
$
15,523
|
|
$
19,997
|
|
$
(4,474)
|
|
(22%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
|
|
$
0.27
|
|
$ 0.34
|
|
$
(0.07)
|
|
(21%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
|
$
0.26
|
|
$ 0.34
|
|
$
(0.08)
|
|
(24%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Choice
Hotels International, Inc.
|
|
|
|
Exhibit
2
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands, except per share amounts)
|
March 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
$
140,225
|
|
$
134,177
|
Accounts
receivable, net
|
|
|
54,202
|
|
52,270
|
Investments,
employee benefit plans, at fair value
|
378
|
|
3,486
|
Other
current assets
|
|
|
44,968
|
|
43,537
|
|
Total
current assets
|
|
|
239,773
|
|
233,470
|
|
|
|
|
|
|
|
|
Fixed
assets and intangibles, net
|
|
149,652
|
|
130,937
|
Receivable
-- marketing and reservation fees
|
51,297
|
|
42,179
|
Investments,
employee benefit plans, at fair value
|
13,933
|
|
12,755
|
Other
assets
|
|
|
|
91,318
|
|
91,431
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
545,973
|
|
$
510,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
94,563
|
|
$
94,266
|
Deferred
revenue
|
|
|
76,316
|
|
71,154
|
Deferred
compensation & retirement plan obligations
|
2,361
|
|
2,522
|
Current
portion of long-term debt
|
|
8,201
|
|
8,195
|
Other
current liabilities
|
|
|
1,550
|
|
-
|
|
Total
current liabilities
|
|
182,991
|
|
176,137
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
863,114
|
|
847,150
|
Deferred
compensation & retirement plan obligations
|
19,940
|
|
20,399
|
Other
liabilities
|
|
|
|
19,257
|
|
15,990
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,085,302
|
|
1,059,676
|
|
|
|
|
|
|
|
|
Common
stock, $0.01 par value
|
|
585
|
|
582
|
Additional
paid-in-capital
|
|
|
108,995
|
|
110,246
|
Accumulated
other comprehensive loss
|
(4,233)
|
|
(4,216)
|
Treasury
stock, at cost
|
|
|
(921,421)
|
|
(927,776)
|
Retained
earnings
|
|
|
276,745
|
|
272,260
|
|
Total
shareholders' deficit
|
|
(539,329)
|
|
(548,904)
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' deficit
|
$
545,973
|
|
$
510,772
|
|
|
|
|
|
|
|
|
Choice
Hotels International, Inc.
|
|
|
Exhibit
3
|
Consolidated
Statements of Cash Flows
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Three
Months Ended March 31,
|
|
|
|
|
|
2013
|
|
2012
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net
income
|
$
15,523
|
|
$
19,997
|
|
|
|
|
Adjustments
to reconcile net income to net cash provided
|
|
|
|
by
operating activities:
|
|
|
|
Depreciation and amortization
|
2,175
|
|
2,017
|
Provision for bad debts, net
|
844
|
|
679
|
Non-cash stock compensation and other charges
|
2,549
|
|
2,543
|
Non-cash interest and other (income) loss
|
76
|
|
(1,593)
|
Deferred income taxes
|
446
|
|
(30)
|
Dividends received from equity method investments
|
146
|
|
-
|
Equity in net loss of affiliates
|
141
|
|
55
|
|
|
|
|
Changes
in assets and liabilities:
|
|
|
|
Receivables
|
(3,531)
|
|
(870)
|
Receivable - marketing and reservation fees, net
|
(4,101)
|
|
(6,187)
|
Accounts payable
|
10,471
|
|
6,712
|
Accrued expenses
|
(31,145)
|
|
(25,342)
|
Income taxes payable/receivable
|
4,367
|
|
8,180
|
Deferred revenue
|
5,160
|
|
1,997
|
Other
assets
|
(3,869)
|
|
(2,611)
|
Other
liabilities
|
2,622
|
|
(1,135)
|
|
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
1,874
|
|
4,412
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Investment
in property and equipment
|
(13,645)
|
|
(3,129)
|
Equity
method investments
|
(1,000)
|
|
(2,600)
|
Issuance
of notes receivable
|
(1,729)
|
|
(3,719)
|
Collections
of notes receivable
|
19
|
|
151
|
Purchases
of investments, employee benefit plans
|
(1,242)
|
|
(743)
|
Proceeds
from sales of investments, employee benefit plans
|
3,882
|
|
8,652
|
Other
items, net
|
(101)
|
|
(108)
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
(13,816)
|
|
(1,496)
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Net
borrowings pursuant to revolving credit facilities
|
18,000
|
|
5,900
|
Principal
payments on long-term debt
|
(2,046)
|
|
(166)
|
Dividends
paid
|
(503)
|
|
(10,713)
|
Purchase
of treasury stock
|
(3,634)
|
|
(14,854)
|
Excess
tax benefits from stock-based compensation
|
952
|
|
422
|
Proceeds
from exercise of stock options
|
5,367
|
|
389
|
|
|
|
|
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES
|
18,136
|
|
(19,022)
|
|
|
|
|
Net
change in cash and cash equivalents
|
6,194
|
|
(16,106)
|
Effect
of foreign exchange rate changes on cash and cash equivalents
|
(146)
|
|
361
|
Cash
and cash equivalents at beginning of period
|
134,177
|
|
107,057
|
|
|
|
|
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
140,225
|
|
$
91,312
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
4
|
SUPPLEMENTAL
OPERATING INFORMATION
|
|
DOMESTIC
HOTEL SYSTEM
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended March 31, 2013*
|
|
For
the Three Months Ended March 31, 2012*
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
|
|
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
$
76.30
|
|
47.5%
|
|
$
36.24
|
|
$ 74.29
|
|
46.8%
|
|
$34.76
|
|
2.7%
|
|
70
|
bps
|
|
4.3%
|
|
|
Comfort
Suites
|
|
81.82
|
|
52.6%
|
|
43.04
|
|
79.88
|
|
51.0%
|
|
40.72
|
|
2.4%
|
|
160
|
bps
|
|
5.7%
|
|
|
Sleep
|
|
69.07
|
|
47.6%
|
|
32.85
|
|
66.39
|
|
45.0%
|
|
29.90
|
|
4.0%
|
|
260
|
bps
|
|
9.9%
|
|
|
Quality
|
|
64.20
|
|
42.2%
|
|
27.08
|
|
63.39
|
|
40.8%
|
|
25.87
|
|
1.3%
|
|
140
|
bps
|
|
4.7%
|
|
|
Clarion
|
|
68.84
|
|
41.1%
|
|
28.32
|
|
67.90
|
|
38.7%
|
|
26.26
|
|
1.4%
|
|
240
|
bps
|
|
7.8%
|
|
|
Econo
Lodge
|
|
51.67
|
|
38.6%
|
|
19.95
|
|
50.31
|
|
38.7%
|
|
19.45
|
|
2.7%
|
|
(10)
|
bps
|
|
2.6%
|
|
|
Rodeway
|
|
47.96
|
|
42.2%
|
|
20.25
|
|
47.08
|
|
41.7%
|
|
19.61
|
|
1.9%
|
|
50
|
bps
|
|
3.3%
|
|
|
MainStay
|
|
68.55
|
|
57.0%
|
|
39.05
|
|
64.60
|
|
61.8%
|
|
39.94
|
|
6.1%
|
|
(480)
|
bps
|
|
(2.2%)
|
|
|
Suburban
|
|
40.90
|
|
63.4%
|
|
25.94
|
|
39.15
|
|
62.5%
|
|
24.47
|
|
4.5%
|
|
90
|
bps
|
|
6.0%
|
|
|
Ascend
Collection
|
|
113.87
|
|
56.1%
|
|
63.84
|
|
104.02
|
|
52.0%
|
|
54.11
|
|
9.5%
|
|
410
|
bps
|
|
18.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
68.87
|
|
45.5%
|
|
$
31.34
|
|
$ 67.32
|
|
44.5%
|
|
$29.95
|
|
2.3%
|
|
100
|
bps
|
|
4.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2013
|
|
3/31/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide
effective royalty rate
|
|
4.39%
|
|
4.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Operating statistics represent hotel operations from December through
February
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
5
|
SUPPLEMENTAL
HOTEL AND ROOM SUPPLY DATA
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, 2013
|
|
March
31, 2012
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
%
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
1,332
|
|
104,159
|
|
1,392
|
|
108,777
|
|
(60)
|
|
(4,618)
|
|
(4.3%)
|
|
(4.2%)
|
|
Comfort
Suites
|
|
597
|
|
46,079
|
|
613
|
|
47,506
|
|
(16)
|
|
(1,427)
|
|
(2.6%)
|
|
(3.0%)
|
|
Sleep
|
|
382
|
|
27,685
|
|
394
|
|
28,564
|
|
(12)
|
|
(879)
|
|
(3.0%)
|
|
(3.1%)
|
|
Quality
|
|
1,172
|
|
99,090
|
|
1,054
|
|
91,942
|
|
118
|
|
7,148
|
|
11.2%
|
|
7.8%
|
|
Clarion
|
|
190
|
|
27,268
|
|
188
|
|
27,550
|
|
2
|
|
(282)
|
|
1.1%
|
|
(1.0%)
|
|
Econo
Lodge
|
|
811
|
|
49,244
|
|
797
|
|
49,254
|
|
14
|
|
(10)
|
|
1.8%
|
|
(0.0%)
|
|
Rodeway
|
|
421
|
|
24,269
|
|
396
|
|
22,183
|
|
25
|
|
2,086
|
|
6.3%
|
|
9.4%
|
|
MainStay
|
|
41
|
|
3,165
|
|
39
|
|
3,024
|
|
2
|
|
141
|
|
5.1%
|
|
4.7%
|
|
Suburban
|
|
63
|
|
7,241
|
|
61
|
|
7,191
|
|
2
|
|
50
|
|
3.3%
|
|
0.7%
|
|
Ascend
Collection
|
|
63
|
|
5,481
|
|
53
|
|
4,671
|
|
10
|
|
810
|
|
18.9%
|
|
17.3%
|
|
Cambria
Suites
|
|
19
|
|
2,221
|
|
19
|
|
2,215
|
|
-
|
|
6
|
|
0.0%
|
|
0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Franchises
|
|
5,091
|
|
395,902
|
|
5,006
|
|
392,877
|
|
85
|
|
3,025
|
|
1.7%
|
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Franchises
|
|
1,173
|
|
104,474
|
|
1,168
|
|
103,491
|
|
5
|
|
983
|
|
0.4%
|
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Franchises
|
|
6,264
|
|
500,376
|
|
6,174
|
|
496,368
|
|
90
|
|
4,008
|
|
1.5%
|
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
6
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
SUPPLEMENTAL
INFORMATION BY BRAND
|
DEVELOPMENT
RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended March 31, 2013
|
|
For
the Three Months Ended March 31, 2012
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
3
|
|
5
|
|
8
|
|
1
|
|
8
|
|
9
|
|
200%
|
|
(38%)
|
|
(11%)
|
|
Comfort
Suites
|
|
2
|
|
2
|
|
4
|
|
1
|
|
2
|
|
3
|
|
100%
|
|
0%
|
|
33%
|
|
Sleep
|
|
1
|
|
-
|
|
1
|
|
3
|
|
-
|
|
3
|
|
(67%)
|
|
NM
|
|
(67%)
|
|
Quality
|
|
-
|
|
19
|
|
19
|
|
-
|
|
27
|
|
27
|
|
NM
|
|
(30%)
|
|
(30%)
|
|
Clarion
|
|
-
|
|
3
|
|
3
|
|
-
|
|
2
|
|
2
|
|
NM
|
|
50%
|
|
50%
|
|
Econo
Lodge
|
|
-
|
|
8
|
|
8
|
|
-
|
|
4
|
|
4
|
|
NM
|
|
100%
|
|
100%
|
|
Rodeway
|
|
-
|
|
9
|
|
9
|
|
-
|
|
12
|
|
12
|
|
NM
|
|
(25%)
|
|
(25%)
|
|
MainStay
|
|
1
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
NM
|
|
Suburban
|
|
-
|
|
1
|
|
1
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
NM
|
|
Ascend
Collection
|
|
2
|
|
26
|
|
28
|
|
1
|
|
2
|
|
3
|
|
100%
|
|
1200%
|
|
833%
|
|
Cambria
Suites
|
|
1
|
|
-
|
|
1
|
|
1
|
|
-
|
|
1
|
|
0%
|
|
NM
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic System
|
|
10
|
|
73
|
|
83
|
|
7
|
|
57
|
|
64
|
|
43%
|
|
28%
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
7
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
DOMESTIC
HOTEL PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR
APPROVED FOR DEVELOPMENT
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A
hotel in the domestic pipeline does not always result in an open and
operating hotel due to various factors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance
|
|
|
March
31, 2013
|
|
March
31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
Units
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
Units
|
|
%
|
|
Units
|
|
%
|
|
Units
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
30
|
|
49
|
|
79
|
|
28
|
|
44
|
|
72
|
|
2
|
|
7%
|
|
5
|
|
11%
|
|
7
|
|
10%
|
Comfort
Suites
|
|
2
|
|
67
|
|
69
|
|
3
|
|
83
|
|
86
|
|
(1)
|
|
(33%)
|
|
(16)
|
|
(19%)
|
|
(17)
|
|
(20%)
|
Sleep
Inn
|
|
1
|
|
44
|
|
45
|
|
1
|
|
44
|
|
45
|
|
-
|
|
0%
|
|
-
|
|
0%
|
|
-
|
|
0%
|
Quality
|
|
35
|
|
2
|
|
37
|
|
40
|
|
4
|
|
44
|
|
(5)
|
|
(13%)
|
|
(2)
|
|
(50%)
|
|
(7)
|
|
(16%)
|
Clarion
|
|
9
|
|
-
|
|
9
|
|
12
|
|
1
|
|
13
|
|
(3)
|
|
(25%)
|
|
(1)
|
|
(100%)
|
|
(4)
|
|
(31%)
|
Econo
Lodge
|
|
23
|
|
-
|
|
23
|
|
18
|
|
2
|
|
20
|
|
5
|
|
28%
|
|
(2)
|
|
(100%)
|
|
3
|
|
15%
|
Rodeway
|
|
30
|
|
-
|
|
30
|
|
25
|
|
1
|
|
26
|
|
5
|
|
20%
|
|
(1)
|
|
(100%)
|
|
4
|
|
15%
|
MainStay
|
|
-
|
|
25
|
|
25
|
|
2
|
|
22
|
|
24
|
|
(2)
|
|
(100%)
|
|
3
|
|
14%
|
|
1
|
|
4%
|
Suburban
|
|
3
|
|
12
|
|
15
|
|
2
|
|
16
|
|
18
|
|
1
|
|
50%
|
|
(4)
|
|
(25%)
|
|
(3)
|
|
(17%)
|
Ascend
Collection
|
|
30
|
|
9
|
|
39
|
|
7
|
|
4
|
|
11
|
|
23
|
|
329%
|
|
5
|
|
125%
|
|
28
|
|
255%
|
Cambria
Suites
|
|
-
|
|
24
|
|
24
|
|
-
|
|
29
|
|
29
|
|
-
|
|
NM
|
|
(5)
|
|
(17%)
|
|
(5)
|
|
(17%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic Pipeline
|
|
163
|
|
232
|
|
395
|
|
138
|
|
250
|
|
388
|
|
25
|
|
18%
|
|
(18)
|
|
(7%)
|
|
7
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
8
|
|
SUPPLEMENTAL
NON-GAAP FINANCIAL INFORMATION
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF FRANCHISING REVENUES AND FRANCHISING MARGINS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar
amounts in thousands)
|
|
Three
Months Ended March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
Franchising
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
136,872
|
|
$
129,169
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and reservation revenues
|
|
(76,440)
|
|
(70,929)
|
|
|
|
|
|
|
|
Hotel
operations
|
|
(956)
|
|
(978)
|
|
|
|
|
|
|
|
Franchising
Revenues
|
|
$
59,476
|
|
$
57,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
136,872
|
|
$
129,169
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
30,466
|
|
$
31,065
|
|
|
|
|
|
|
|
Operating Margin
|
|
22.3%
|
|
24.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Revenues
|
|
$
59,476
|
|
$
57,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
30,466
|
|
$
31,065
|
|
|
|
|
|
|
|
Hotel
operations
|
|
(81)
|
|
(169)
|
|
|
|
|
|
|
|
|
|
$
30,385
|
|
$
30,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising Margins
|
|
51.1%
|
|
54.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2013 Actuals
|
|
Q1
2012 Actuals
|
|
Full-Year
2013 Outlook Range
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (per GAAP)
|
|
$
30,466
|
|
$
31,065
|
|
$ 196
|
|
$ 200
|
|
|
|
Depreciation
and amortization
|
|
2,175
|
|
2,017
|
|
10
|
|
10
|
|
|
|
Earnings
before interest, taxes, depreciation & amortization
(non-GAAP)
|
|
$
32,641
|
|
$
33,082
|
|
$ 206
|
|
$ 210
|
|
|