Choice Hotels International Reports Fourth Quarter And Full-Year 2013 Results (United States)
Fourth Quarter Franchising EBITDA and Diluted EPS Increase 8% and 10%, Respectively |
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Choice Hotels International Reports Fourth Quarter And Full-Year 2013 Results (United States)
Fourth Quarter Franchising EBITDA and Diluted EPS Increase 8% and 10%, Respectively |
Category: North America & West Indies / Carribean islands - United States - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2014-02-19
Fourth Quarter New Domestic Hotel Franchise Contracts Rise 28% Excluding Multi-Unit Deals
Choice Hotels International, Inc., today reported the following highlights for the fourth quarter and full-year 2013:
Fourth Quarter Highlights
Diluted earnings per share ("EPS") for the three months ended December 31, 2013 totaled $0.46, an increase of 10% from the same period of 2012.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") from franchising activities for the three months ended December 31, 2013 totaled $52.2 million, an increase of 8% from the same period of 2012.
Franchising revenues for the three months ended December 31, 2013 totaled $78.8 million, an increase of 2% from the same period of 2012. Domestic system-wide revenue per available room ("RevPAR") increased 1.3% for the three months ended December 31, 2013 from the same period of 2012 as hotel operations in the Northeast and Mid-Atlantic regions as well as hotels near national parks were impacted by the government shutdown. Domestic RevPAR results reflect occupancy and average daily rates increases of 50 basis points and 0.4%, respectively.
Initial franchise and relicensing fees for the three months ended December 31, 2013 totaled $5.8 million, an increase of 11% from the same period of 2012.
The company executed 215 new domestic hotel franchise contracts for the three months ended December 31, 2013 compared to 214 new domestic hotel franchise contracts for the same period of 2012. Domestic hotel contracts executed during the three months ended December 31, 2012 included an agreement with affiliates of Colony Capital, a private international investment firm, and hospitality management company Aimbridge Hospitality, to convert 46 properties, formerly operated as Jameson Inns, to the company's Quality Inn, Comfort Inn and Econo Lodge brands. Excluding this transaction, domestic franchise agreements executed during the fourth quarter of 2013 increased 28% from the same period of 2012.
Domestic relicensing and contract renewal transactions for the three months ended December 31, 2013 totaled 85 contracts, an increase of 8% from the same period of 2012.
Franchising selling, general and administrative expenses ("SG&A") for the three months ended December 31, 2013 totaled $26.6 million, a 7% decline from the same period of 2012. Excluding a loss on settlement of the company's pension plan during the fourth quarter of 2012 totaling $1.8 million, franchising SG&A declined by approximately $0.1 million.
"We are pleased with our fourth quarter operating results which reflect a continued improvement in the domestic franchise development environment," said Stephen P. Joyce, president and chief executive officer of Choice Hotels International. "Our development results reflect a 14% increase in our conversion franchise agreements over the prior year and we expect that the conversion franchise sales environment will continue to improve. In addition, we are optimistic that the new construction environment for our brand segments will gradually improve in 2014 and beyond."
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