Choice Hotels releases its second quarter 2017 earnings to investors, reporting a net income of $45m or 79 cents per diluted share, a 16% increase compared to $38.8m or 68 cents per diluted share in the second quarter of 2016. Earnings before taxes, depreciation and amortization were $81.1m, an increase of 15% from last year’s $70.4m in the second quarter. Domestic system-wide revenue per RevPAR upped 2 percent from the same period last year. There was also an increase of 30 basis points for occupancy and average daily rates upped 1.5% from the second quarter in 2016.
Choice Hotels paves the way for their newly appointed CEO Pat Pacious who is working closely with current CEO Stephen P. Joyce to ensure a seamless succession. Pacious announces the company’s continued efforts to boost it Choice Privileges loyalty program and direct bookings that was launched last year. Choice Hotel’s loyalty program has over 32 million members with 2.5 million who joined this year. Member rates for bookings deliver the ‘highest profitability to franchises’ and the revenue stemming from Choice Hotel’s proprietary channels set a new record with a whopping 51.8% of all revenue in the second quarter. Choice Hotels midscale and upscale brands such Comfort, Quality and Sleep In have upped its game by adding to its portfolio upscale brands such as Cambria and the Ascend. Comfort brand’s rejuvenation efforts are going strong with a $64m investment for Cambria Hotels brand growth during the first half of 2017 as part of it development initiatives.
Pacious announces the company’s plans to tally 75 to 100 Cambria properties to its portfolio with a focus on international expansion. Speaking about the acquisition of upper upscale brand, Pacious said: “We’ll continue to do those three things we mentioned: Expand the great business we have in midscale. Capitalize on the momentum we have in upscale. Look at international growth as a real opportunity for us. There’s not a significant shift in strategy. It’s the same strategy that Steve [Joyce] has led for the last 10 years and I’ve been working with him on. We like the growth prospects associated with that. [Any mergers or acquisitions we make have] to be accretive for shareholders and have to make sense for individual hotel owners and how we can help the improve their business.”
The franchises who opt into Choice Hotel’s revenue management services and tools, the returns are all gain with positively no pain. Pacious explains the domestic member hotels who normally see a $7 or $8 return on investment will now see a rise of 6% in incremental RevPAR over the hotels who do not use the service.
The Editorial Team, Point Franchise ©
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