While Choice ramped up its pipeline and franchise agreements in 2018, growth in the company's revenue per available room looked fragile in the final stretch of the year. Domestic systemwide RevPAR increased just 0.7 percent year over year in the fourth quarter and 1.2 percent for the full year. Net income was $31.5 million in the fourth quarter and $216.4 million for all of 2018.
Choice's domestic pipeline of hotels either awaiting conversion, under construction or approved for development shot up to 1,026 as of the end of 2018, a 20 percent increase a year prior.
The hotel company executed 287 domestic franchise agreements in the last quarter, pushing agreements for the year to 756, a 7 percent increase over 2017. Choice's extended-stay portfolio inked 161 franchise agreements in 2018, following last February's acquisition of WoodSpring Suites. The number of rooms under the Cambria upscale brand and the Ascend soft brand increased by 14 percent in 2018.
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Choice's franchise revenue jumped 13 percent year over year in the fourth quarter to $114.5 million. The year-end total reached $483.4 million, a 12 percent increase over 2017.
President and CEO Patrick Pacious said Choice's performance in 2018 is "more than a single good year. It builds on years of success and validates that our long-term strategy is working."
Choice expects net income in 2019 to fall between $193 million and $201 million. RevPAR next year is expected to grow by between 0.5 percent and 2 percent.
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