Choice Hotels International reported a 5 percent
year-over-year increase in revenue per available room during the fourth quarter
of 2016, besting the RevPAR growth of those competitors that have already
reported earnings.
The growth was driven by increases in both average daily
rate, up 2.3 percent to $79.10, and occupancy, up 150 basis points to 57.3
percent. CEO Steve Joyce attributed Choice's positive performance partly to its
predominantly leisure travel business, a segment that industrywide has held up in
recent quarters as corporate travel has lagged. For the full year, systemwide
ADR grew 3 percent to $82.64, and occupancy increased 50 basis points to 61.7
percent.
Choice is accelerating growth of its number of rooms,
particularly of its upscale brands, which include Cambria Hotel & Suites
and soft brand Ascend Hotel Collection. At the end of 2016, the Cambria
pipeline was 53 percent larger than at the same time a year prior. Choice's
total year-end domestic pipeline—721 hotels awaiting conversion, under
construction or approved for development—increased 19 percent year over.
The company's fourth-quarter net income
increased 9 percent year over year to $31.8 million. Full-year net income grew
8.6 percent to $139.4 million.