Choice Hotels generates record profits in 2014

EconoLodge is one of 11 hotel brands operated by Choice
EconoLodge is one of 11 hotel brands operated by Choice

Choice Hotels International, the global hotel franchise company, has posted a strong set of full-year results, with record revenues and net profits in 2014.

The US-based company, which operates such brands as Comfort Inn, Cambria Suites and EconoLodge, generated net profits of US$113.7 million last year, up 8% compared to 2013. Revenues climbed 5% to US$758m, including a 9% jump in franchising turnover.

The company’s overall revenue per available room (revPAR) increased 8.5% to US$45.80, following a 3.1 percentage point rise in occupancy levels, to 59.5%, and a 3.0% increase in average daily rates (ADR) to US$74.76.

The Rodeway (+11.1%), Sleep (+10.5%) and Clarion (+10.1%) brands saw the strongest revPAR growth, but the upscale Ascend Hotel Collection fell 4.4%.

And Choice has issued a strong outlook for 2015; revPAR is expected to increase approximately 11% for the first quarter of this year, and between 6.5% and 8% for the full year.

By the end of last year, Choice had a total global portfolio of 6,379 hotels comprising 505,278 rooms.

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