Comfort Inn 2014 Annual Report Download - page 14

Table of Contents


Number of properties, end of period 64
60
63
63
65
Number of rooms, end of period 7,685
7,126
7,291
7,167
7,198
Royalty fees ($000) $ 2,366
$ 2,539
$ 2,709
$ 2,832
$ 3,111
Average occupancy percentage 64.1%
67.6%
69.9%
70.2%
71.8%
Average daily room rate (ADR) $ 39.27
$ 40.38
$ 41.71
$ 42.67
$ 45.25
RevPAR $ 25.16
$ 27.31
$ 29.14
$ 29.96
$ 32.51

Number of properties, end of period 23
19
19
18
22
Number of rooms, end of period 2,700
2,215
2,221
2,119
2,642
Royalty fees ($000) $ 1,486
$ 2,032
$ 2,102
$ 2,147
$ 2,687


Number of properties, end of period 38
52
57
102
109
Number of rooms, end of period 3,025
4,617
4,982
9,206
9,395
Royalty fees ($000) $ 1,172
$ 1,678
$ 2,464
$ 3,741
$ 4,950
Average occupancy percentage 57.8%
59.8%
64.8%
64.0%
60.3%
Average daily room rate (ADR) $ 112.69
$ 113.45
$ 113.83
$ 119.76
$ 121.49
RevPAR $ 65.17
$ 67.79
$ 73.78
$ 76.60
$ 73.20
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(1) Statistics for average occupancy percentage, ADR and RevPAR have been excluded for years in which the brand 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.
International Franchise Operations
The Company conducts its international franchise operations through a combination of direct franchising and master franchising relationships. Master
franchising relationships are governed by master franchising agreements that generally provide the master franchisee with the right to use and sub-license the
use of our brands in a specific geographic region, usually for a fee.
Our business philosophy has been to conduct direct franchising in those international markets where both franchising is an accepted business model
and we believe our brands can achieve significant distribution. We typically elect to enter into master franchise agreements in those markets where direct
franchising is currently not a prevalent or viable business model. When entering into master franchising relationships, we strive to select partners that have
professional hotel and asset management capabilities together with the financial capacity to invest in building the Choice brands in their respective markets.
Master franchising relationships typically provide lower revenues to the Company as the master franchisees are responsible for managing certain necessary
services (such as training, quality assurance, reservations and marketing) to support the franchised hotels in the master franchise area and therefore retain a
larger percentage of the hotel franchise fees to cover their expenses. In certain circumstances, the Company has and may continue to make equity investments
in our master franchisees.
As a result of our use of master franchising relationships and international market conditions, revenues from international franchising operations
comprised 8% of our total revenues in both 2014 and 2013 while representing approximately 18% of our franchise system hotels open at both December 31,
2014 and 2013, respectively.
In some territories outside the United States hotel franchising is less prevalent, and many markets are served primarily by independent operators. We
believe that chain and franchise affiliation will increase in certain international markets as local economies grow and hotel owners seek the economies of
centralized reservations systems and marketing programs. We believe that international franchise operations will provide a significant long-term growth
opportunity for the Company and as a result we have embarked on a multi-year investment in information technology and marketing which is expected to
enhance the value proposition for prospective international franchisees.
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