La Quinta Inns & Suites is targeting growth in urban markets in an effort to boost average daily rate across the brand, president and CEO Wayne Goldberg said during the company's first-quarter earnings call on Tuesday.
The midprice brand currently is "underrepresented" in top markets compared with its competitive set, Goldberg said. About 16 percent of La Quinta's current pipeline of 186 hotels, totaling more than 15,000 rooms, are urban properties, he said. The company also aims to grow its presence in the Northeast, Northwest and Midwest, where it similarly is underrepresented, he said.
As those markets tend to have higher average daily rates than secondary markets, La Quinta's growth there would help push up ADR across the entire brand, Goldberg said.
During the first quarter, La Quinta's ADR increased 4.4 percent year over year, and occupancy increased by 1.3 percentage points, the company reported. Revenue per available room increased 6.7 percent to $50.44, and RevPAR growth was particularly strong in Miami, Houston and Denver, according to Goldberg.
La Quinta's net income for the quarter was $7.7 million, up from $3.3 million in the first quarter of 2013.