Skip to content

Choice Hotels revenue rises, profits fall

  • H L 
  • Uncategorised

Rockville-based?Choice Hotels International?Inc. posted growth in second quarter revenue, but profits fell from a year ago due to leveraging costs from a special dividend paid last year.

Total revenue increased 6 percent to $183.6 million compared to the same period last year.

Choice Hotels?(NYSE: CHH) posted a 1.8 percent rise in its average daily rate charged, a 90 basis point gain in occupancy, and a 3.5 percent rise in revenue per available room.

Stephen Joyce, Choice president and CEO, credited the rise in revenue per available room to its upscale Ascend Collection, Suburban Extended Stay Hotel brand and the Sleep Inn brand.

Net income fell to $28.2 million, or 48 cents per diluted share, compared to $31.9 million, or 55 cents per share, in the prior-year period.

The company paid more than $7 million compared to last year?s second quarter due to costs incurred for the payment of a $600 million special cash dividend in August 2012.

Shares closed Friday up 19 cents, to $42.84 as of 9:35 a.m, and have risen about 27 percent since the start of the year.

Source Washington Business Journal