Choice Hotels Sees EBITA, Operating Income Gains in Second Quarter
By Kerry Medina
July 26, 2012 10:05 PM
Choice Hotels International, Inc. said earnings before interest, taxes, depreciation and amortization (EBITDA) increased 14 percent to $53.6 million for the three months ended June 30, 2012, compared to $47 million for the same period last year. Operating income increased 14 percent from $45.1 million for the three months ended June 30, 2011 to $51.6 million for the same period in 2012.
Franchising revenues increased 6 percent to $77.8 million for the three months ended June 30, 2012 from $73.4 million for the same period of 2011. Total revenues increased 5 percent to $173.6 million for the three months ended June 30, 2012 compared to the same period of 2011. Domestic royalty fees for the three months ended June 30, 2012 increased $4.4 million to $59.8 million from $55.4 million in the same three months last year, an increase of 8 percent.
Domestic system-wide revenue per available room (revPAR) increased 7.7 percent for the three months ended June 30, 2012 compared to the same period of 2011 as occupancy and average daily rates increased 250 basis points and 2.8 percent, respectively. The company executed 106 new domestic hotel franchise contracts for the three months ended June 30, 2012 compared to 69 new domestic hotel franchise contracts in the same period of the prior year, a 54 percent increase. The number of worldwide hotels under construction, awaiting conversion or approved for development as of June 30, 2012 was 453 hotels representing 37,380 rooms.
"We are very pleased with our results for the quarter. People are traveling, we are driving record traffic to our hotels and the development environment is improving,” said Stephen Joyce, Choice’s president and CEO. “Our second quarter results, in fact, were highlighted by the 106 new domestic franchise agreements we executed in the second quarter of 2012, a 54 percent increase over the prior year.















