Choice Hotels International, Inc. reported the highlights for the fourth quarter and full-year 2014. Franchising revenues for the three months ended December 31, 2014, totaled $81.4 million, an increase of 12 percent from the same period of 2013.
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Earnings before interest, taxes, depreciation and amortization (EBITDA) from franchising activities for the three months ended December 31, 2014, totaled $52.7 million, an increase of 15 percent from the same period of 2013.
Franchising margins for the three months ended December 31, 2014, were 62.1 percent, an increase of 150 basis points from the same period of 2013.
Diluted earnings per share ("EPS") from continuing operations for the three months ended December 31, 2014, totaled $0.43, an increase of 7 percent from the same period of 2013.
Domestic royalty fees for the three months ended December 31, 2014, totaled $59.2 million, an increase of 11 percent from the same period of 2013.
Domestic system-wide revenue per available room ("RevPAR") increased 11.2 percent in the fourth quarter of 2014, as occupancy and average daily rates increased 370 basis points and 3.8 percent, respectively from the same period of 2013.
Domestic hotel executed franchise agreements totaled 269 for the three months ended December 31, 2014, an increase of 25 percent from the same period of 2013.
New construction domestic hotel executed franchise agreements totaled 80 for the three months ended December 31, 2014, an increase of 78 percent from the same period of 2013.
The company purchased 1 million shares of common stock under its share repurchase program during the three months ended December 31, 2014, at a total cost of approximately $54.2 million.
The company's board of directors authorized an increase in the number of shares for repurchase under the current share repurchase program to 3 million shares.
Full-year highlights
EBITDA from franchising activities in 2014 totaled $240 million, an increase of $25.1 million or 12 percent from 2013. Franchising revenues in 2014 totaled $344.8 million, an increase of $27.8 million or 9 percent from 2013. Franchising SG&A expenses in 2014 totaled $104.8 million, an increase of 3 percent from 2013. Franchising margins for 2014 were 67.2 percent, an increase of 210 basis points from 2013.
Diluted EPS from continuing operations in 2014 totaled $2.07, an increase of 8 percent from 2013. Domestic royalty fees in 2014 totaled $263.0 million, an increase of 8 percent from 2013. Domestic system-wide RevPAR increased 8.5 percent in 2014 as occupancy and average daily rates increased 310 basis points and 3.0 percent, respectively, from 2013. Domestic units increased 0.8 percent from December 31, 2013.
New franchise contracts, executed in 2014 for domestic hotels, totaled 566, a 7 percent increase from 2013. Domestic relicensing and contract renewal transactions in 2014 totaled 336 contracts, an increase of 16 percent from 2013.
The company's domestic pipeline of hotels under construction, awaiting conversion or approved for development increased 21 percent from December 31, 2013.
The company's first quarter 2015 diluted EPS is expected to be $0.37. The company expects full-year 2015 diluted EPS to range between $2.14 and $2.21. EBITDA for full-year 2015 are expected to range between $236 million and $241 million. ■
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