Comfort Inn 2013 Annual Report Download - page 11

Table of Contents
The following table presents key statistics related to our domestic franchise system over the five years ended December 31, 2013.
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
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Number of properties, end of period 4,906
4,993
5,001
5,083
5,180
Number of rooms, end of period 388,594
393,535
392,826
396,102
400,585
Royalty fees ($000) $196,406
$ 206,049
$220,047
$235,502
$ 242,315
Average royalty rate(1)
4.25%
4.29%
4.32%
4.33%
4.33%
Average occupancy percentage(1)
49.4%
51.3%
53.5%
55.5%
56.3%
Average daily room rate (ADR)(1)
$71.24
$70.50
$71.83
$73.60
$ 74.76
Revenue per available room (RevPAR)(1),(2)
$ 35.18
$ 36.18
$38.44
$40.84
$42.08
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(1) Amounts exclude results from Cambria Suites properties open during all periods since the operating statistics are not representative of a stabilized brand
which the Company defines as having at least 25 units open and operating for a twelve month period.
(2) The Company calculates RevPAR based on information as reported to the Company by its franchisees.
According to Smith Travel Research, the total rooms open and operating in the United States at December 31, 2013 totaled approximately 4.9 million
rooms of which 8.1% were affiliated with Choice's brands. Choice branded system-wide United States market share as of December 31, 2013 has increased
16 basis points over the past 5 years representing a cumulative annual growth rate of 1.4% compared to the total industry domestic growth rate of 1.0%.
Currently, no individual domestic franchisee accounts for more than 2% of the Company's total revenues.
Industry Positioning
Our brands offer consumers and developers a wide range of options, including economy hotels, mid-scale, upper mid-scale and lower upscale, full
service properties. Our brands are as follows:
Cambria Suites: Cambria Suites is a new construction select service hotel chain with an upscale image and distinctive styling. Cambria offers well-
appointed suites that emulate the “best of a modern home.” In-room amenities include luxury bedding, stereo with CD player, cordless phone and mini-
refrigerator with microwave. Principal competitor brands include Courtyard by Marriott and Hilton Garden Inn. The Cambria Suites brand was launched in
January 2005 and the first properties opened during 2007.
Ascend Hotel Collection: Ascend Hotel Collection is an innovative membership program that is not positioned as a traditional franchise concept. The
Ascend Hotel Collection includes individual properties that are historic, boutique and/or unique and desire to retain their independent brand identity but have
access to Choice’s marketing and distribution channels. The Ascend Hotel Collection offers the best of both worlds: independence backed up by a powerful
global distribution network. Principal competitors include Sterling Hotels, Summit Hotel & Resorts, Small Luxury Hotels and Historic Hotels of America. The
Ascend Collection membership was launched in October 2008.
Comfort Inn: Comfort Inn and Comfort Inn and Suites hotels are primarily upper mid-scale limited service hotels that offer a warm and welcoming
guest experience designed to help travelers rest and refresh for the next day. One of the original brands in the limited service category, Comfort has built a
reputation for consistent high-value accommodations for both business and leisure travelers. Comfort offers complimentary hot breakfast with fresh waffles, a
swimming pool and/or exercise room, and free high-speed internet access. Principal competitor brands include Holiday Inn Express and Country Inn & Suites.
Comfort Suites: An extension of the highly regarded Comfort Inn brand, Comfort Suites hotels have a focus on meeting the needs of the business
traveler. Hotels are 100% smoke free and rooms are oversized with separate areas for working and sleeping. In addition, each room features a sleeper sofa,
refrigerator and microwave. Comfort Suites hotels offer a complimentary hot breakfast and free high-speed internet access, as well as a marketplace with
snacks, mini-meals and beverages for purchase. The brand competes with Hampton and Fairfield Inn.
Sleep Inn: Sleep Inn is a new construction brand that operates in the moderate tier of the mid-scale lodging category, offering developers a lower cost to
build with competitive mid-scale average daily rates. Sleep Inn delivers a stylish, contemporary guest experience, providing both business and leisure travelers
with free high-speed internet access, an exercise
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