Choice Hotels Q2 Profit Up - Quick Facts

(RTTNews) - Maryland-based hotel franchise company Choice Hotels International Inc. (CHH) Friday reported second-quarter earnings which increased, as a growth in royalty fees boosted revenues.

For the three months to June, net earnings were $35.4 million or $0.60 per share, up from $31.81 million or $0.54 per share a year earlier.

Prior-year results have been restated to reflect the change in company's new accounting practice for royalty and certain marketing and reservation fees.

On average, fifteen analysts polled by Thomson-Reuters estimated the company's earnings to be $0.49 for the quarter. Analysts' estimates typically exclude one-time items.

EBITDA totaled $62.48 million, compared with $57.13 million in the same period last year.

Quarterly revenues rose to $197.66 million, from $190.93 million last year, above the $193.28 million Wall Street expected.

Domestic RevPar, or revenue per available room, rose 7.6 percent, as occupancy and average daily rates increased 280 basis points and 2.9 percent, the company said.

Domestic royalty fees totaled $71.2 million, up 7 percent from last year.

Looking ahead, the company expects annual earnings of $1.92 and $1.96 per share and third-quarter earnings of $0.62 per share.

Analysts expect annual earnings of $1.92 and third-quarter earnings of $0.68.

Choice Hotels expects RevPAR to increase 6.25 to 7.25 percent for 2014 and around 6.5 percent for the third quarter.