Choice increased its profit by 27% year-on-year to US$20 million in the first quarter of 2012 from US$15.7 million in 2011.
Choice Hotels International, Silver Spring, Maryland, saw its margin boosted by an 11% increase in franchising revenues to US$57.3 million. Domestic systemwide RevPAR increased 8.6% year-on-year in the first quarter while occupancy and ADR both increased 2.5%.
“Domestic RevPAR growth exceeded our expectations due to a combination of strong occupancy gains and increases in ADR,” said Stephen Joyce, Choice president and CEO. “While the development environment continues to be challenging, we are pleased with the continued strengthening of leisure travel and the success of our programs designed to drive business through our central reservation channels which deliver guests at the highest ADR.”
Choice executed 64 new domestic hotel franchise contracts in the first quarter compared to 56 new domestic hotel franchise contracts in the same period of the prior year, a 14% increase.
Looking ahead, Choice expects net domestic unit growth to be relatively flat in 2012 while RevPAR is expected to increase approximately 7% for second quarter of 2012 and increase between approximately 5% and 7% for full-year 2012.