ROCKVILLE, Md. — Choice Hotels International has reported record franchising revenues and an uptick in RevPAR and occupancy in its annual earnings report.
Domestic system-wide RevPAR jumped 11.2 per cent during the fourth quarter of 2014 and occupancy and ADR increased by 370-basis points and 3.8 per cent, respectively, compared to the same period in 2013. “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 CEO of Rockville, Md.-based Choice Hotels. “Domestic RevPAR gains in 2014 improved each quarter culminating with an 11-per-cent increase in the fourth quarter, which outpaced the gains reported by Smith Travel Research in the chain scale segments in which we compete.”
The team has executed 269 franchise agreements during the fourth quarter of 2014, up 25 per cent from the same period in 2013. Overall, franchising revenues in 2014 totalled $344.8 million, up nine per cent from the previous year.
Looking forward, the company expects EBITDA from franchising activities in 2015 will be between $254 million and $259 million, and RevPAR will increase by about 11 per cent during the first quarter of 2015.