Choice Hotels’ domestic franchised hotels & rooms increased 7.4% and 9.7%, respectively

CHOICE-HOTELS-INTERNATIONAL-LOGO LogoChoice Hotels International has reported its results for the three months ended March 31, 2018, which include the results from the acquisition of the WoodSpring Suites brand (“WoodSpring”) beginning on February 1, 2018. Highlights include: Net income was $25.1 million, or $0.44 per diluted share, for the first quarter of 2018. Adjusted net income, excluding certain items described in Exhibit 6, increased 25 percent to $38.4 million from the 2017 first quarter.
Adjusted diluted earnings per share (EPS) were $0.67 for the first quarter, a 24 percent increase from the 2017 first quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter 2018 were $66.9 million, an increase of 15 percent from the same period of 2017.
Total revenues for the three months ended March 31, 2018, increased 11 percent from the first quarter of 2017.
Cambria Hotels opened hotels in Philadelphia, Nashville, Tenn., and Chandler, Ariz. The brand now has hotels open or in the pipeline in 42 of the top 50 U.S. markets.
The company repurchased 0.5 million shares of the company’s outstanding common stock for an aggregate cost of $42 million during the first quarter.
RevPAR and the effective royalty rate for WoodSpring increased 13.5 percent and 42 basis points, respectively, for the first quarter, compared to the same period of the prior year.
“Our first quarter results built upon our robust 2017 performance. In addition to strong RevPAR performance and development results, we continued to evolve our family of brands by acquiring WoodSpring, unveiling last week a new brand image for our flagship Comfort brand, and expanding Cambria Hotels into more top 50 RevPAR markets,” said Patrick Pacious, president and chief executive officer, Choice Hotels. “We are optimistic that our focus on improving franchisee profitability, the favorable economic environment, including tax reform, and our value proposition will continue to fuel the expansion of our well-segmented brand family.”