Comfort Inn 2009 Annual Report Download - page 8

8 | 2009 Annual Review
2009
We recently launched a new ChoiceHotels.com
Web site, designed to increase conversion rates
and deliver more reservations to our franchisees’
properties. We are continuing to leverage the
strength of Choice’s direct, online channels to
strengthen our reservation platform and offer
new distribution opportunities. We are also rolling
out a new Rates Management Tool designed to
streamline the way Choice-brand hotels manage
their rates, yield and revenue.
Improve Operational
Performance
To accomplish its strategic goals, Choice Hotels
will work to ensure that its people, processes
and technology are optimized to support its
objectives. To make certain that Choice Hotels
is recognized in both the community and the
industry for its efforts, we will continue to take
measures to enhance its corporate profile and
reputation. In 2009, Choice Hotels selected
Rebuilding Together, the nation’s leading not-
for-profit organization dedicated to preserving
affordable housing and homeownership for low-
income Americans, as its signature cause.
On the industry side, Choice management will
identify additional opportunities to develop
strong relationships with travel, franchising and
hospitality associations.
Maximize Financial and
Shareholder Returns
We remain committed over the long term to
utilizing the strong, predictable cash flows that
our pure-play franchising business has historically
generated to return excess capital to our share-
holders, primarily through dividends and share
repurchases. Through a disciplined approach to
capital allocation, we have returned over 99%
of the more than $1 billion in cumulative free
cash flows (operating cash flows less investing
cash flows) that the company has generated to
shareholders since 1997.
In 2009, the Board of Directors elected to
maintain the annual dividend at $0.185 cents per
share per quarter, when many hotel companies
eliminated their dividend payments. For the year
ended December 31, 2009, the company paid
$44.3 million of cash dividends to shareholders.
During the year ended December 31, 2009, the
company purchased approximately 2.1 million
shares of its common stock at an average price
of $27.03 for a total cost of $57.4 million. Since
Choice Hotels announced its stock repurchase
program on June 25, 1998, the company has
repurchased 42.9 million shares of its common
stock for a total cost of $1 billion through
December 31, 2009. Considering the effect of a
two-for-one stock split in October 2005, the
company had repurchased 75.9 million shares
through December 31, 2009, under the share
repurchase program at an average price of
$13.28 per share. As of December 31, 2009, the
company had authorization to purchase up to
an additional 3.8 million shares under its share
repurchase program.