Choice Hotels International, Inc. reported the following highlights for the fourth quarter and full-year 2014:

Fourth Quarter Highlights

  • Franchising revenues for the three months ended December 31, 2014, totaled $81.4 million, an increase of 12 percent from the same period of 2013.
  • Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from franchising activities for the three months ended December 31, 2014, totaled $52.7 million, an increase of 15 percent from the same period of 2013.
  • Franchising margins for the three months ended December 31, 2014, were 62.1 percent, an increase of 150 basis points from the same period of 2013.
  • Diluted earnings per share (“EPS”) from continuing operations for the three months ended December 31, 2014, totaled $0.43, an increase of 7 percent from the same period of 2013.
  • Domestic royalty fees for the three months ended December 31, 2014, totaled $59.2 million, an increase of 11 percent from the same period of 2013.
  • Domestic system-wide revenue per available room (“RevPAR”) increased 11.2 percent in the fourth quarter of 2014, as occupancy and average daily rates increased 370 basis points and 3.8 percent, respectively from the same period of 2013.
  • Domestic hotel executed franchise agreements totaled 269 for the three months ended December 31, 2014, an increase of 25 percent from the same period of 2013.
  • New construction domestic hotel executed franchise agreements totaled 80 for the three months ended December 31, 2014, an increase of 78 percent from the same period of 2013.
  • The company purchased 1.0 million shares of common stock under its share repurchase program during the three months ended December 31, 2014, at a total cost of approximately $54.2 million.
  • The company’s board of directors authorized an increase in the number of shares for repurchase under the current share repurchase program to 3 million shares.

“Our fourth quarter results exceeded our expectations and we closed out a record year driven by strong RevPAR performance and franchise development results,” said Stephen P. Joyce, president and chief executive officer, Choice Hotels. “Domestic RevPAR gains in 2014 improved each quarter culminating with an 11% increase in the fourth quarter which outpaced the gains reported by Smith Travel Research in the chain scale segments in which we compete. Our efforts and initiatives to strengthen our brands and improve business delivery to our franchisees are illustrated by our RevPAR performance and doubling the number of new construction franchise agreements for our Comfort family of brands. We are optimistic that developers will continue to respond to our program to rejuvenate our iconic Comfort brand and are optimistic that RevPAR performance will continue to be strong in 2015.”

Full-Year Highlights

  • EBITDA from franchising activities in 2014 totaled $240.0 million, an increase of $25.1 million or 12 percent from 2013.
  • Franchising revenues in 2014 totaled $344.8 million, an increase of $27.8 million or 9 percent from 2013.
  • Franchising SG&A expenses in 2014 totaled $104.8 million, an increase of 3 percent from 2013.
  • Franchising margins for 2014 were 67.2 percent, an increase of 210 basis points from 2013.
  • Diluted EPS from continuing operations in 2014 totaled $2.07, an increase of 8 percent from 2013.
  • Domestic royalty fees in 2014 totaled $263.0 million, an increase of 8 percent from 2013.
  • Domestic system-wide RevPAR increased 8.5 percent in 2014 as occupancy and average daily rates increased 310 basis points and 3.0 percent, respectively, from 2013.
  • Domestic units increased 0.8 percent from December 31, 2013.
  • New franchise contracts, executed in 2014 for domestic hotels, totaled 566, a 7 percent increase from 2013.
  • Domestic relicensing and contract renewal transactions in 2014 totaled 336 contracts, an increase of 16 percent from 2013.
  • The company’s domestic pipeline of hotels under construction, awaiting conversion or approved for development increased 21 percent from December 31, 2013.

To view full fourth quarter and full year financial results please visit:

http://media.choicehotels.com/phoenix.zhtml?c=217856&p=irol-newsArticle&ID=2018587

Chesapeake Lodging Trust reports fourth quarter results and enters definitive agreement to acquire The James Royal Palm.

Highlights:

  • RevPAR: 7.5% pro forma increase for the 17-hotel portfolio and 4.9% pro forma increase for the 20-hotel portfolio over the same period in 2013.
  • Adjusted Hotel EBITDA Margin: 70 basis point pro forma increase to 31.0% for the 17-hotel portfolio and 20 basis point pro forma increase to 30.5% for the 20-hotel portfolio over the same period in 2013.
  • Adjusted Hotel EBITDA: $37.7 million.
  • Adjusted Corporate EBITDA: $33.7 million.
  • Adjusted FFO: $24.0 million or $0.44 per diluted common share.
  • Acquisitions: Acquired the 337-room JW Marriott San Francisco Union Square for a purchase price of $147.2 million. Subsequent to quarter end, entered into a definitive agreement to acquire the 393-room James Royal Palm located in Miami Beach, Florida for a purchase price of $278.0 million.
  • Dividends: Increased first quarter 2015 dividend by 17% to $0.35 per common share (3.8% annualized yield based on the closing price of the Trust’s common shares on February 18, 2015).

“We are very excited to announce our entrance into the highly desirable Miami South Beach market with the pending acquisition of The James Royal Palm,” said James L. Francis, Chesapeake Lodging Trust’s President and Chief Executive Officer. “The Royal Palm, which recently underwent a comprehensive renovation, has an irreplaceable oceanfront location at the intersection of Collins Avenue and 15th Street.” Mr. Francis continued, “We believe the hotel has significant upside potential in both revenue and profitability and we are happy to partner with both HEI Hotels & Resorts, as the new hotel manager, and Starwood Hotels & Resorts, as the franchisor, on this project.”

To view full fourth quarter financial results please visit:

http://www.chesapeakelodgingtrust.com/phoenix.zhtml?c=233098&p=irol-newsArticle&ID=2018410