Comfort Inn 2014 Annual Report Download - page 15

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Table of Contents
As of December 31, 2014, we had 1,158 franchise hotels open and operating in over 30 countries and territories outside of the United States. The
following chart summarizes our franchise system outside of the United States.







Number of properties, end of period 1,149
1,177
1,160
1,160
1,158
Number of rooms, end of period 101,610
104,379
103,151
105,473
106,617
Royalty fees ($000) $ 21,697
$ 25,248
$ 25,131
$ 24,721
$ 24,515
____________________________
(1) Reporting of operating statistics (e.g., average occupancy percentage and average daily room rate) of international franchisees is not required by all
master franchise contracts, thus these statistics and RevPAR are not presented for international franchisees.
Scandinavia. We conduct our operations in Scandinavia through a master franchise relationship with Nordic Choice Commercial Services A/S ("NCH"),
formerly known as Choice Hotels Scandinavia. As of December 31, 2014, NCH had 179 open properties in its development territory, which includes
Denmark, Norway and Sweden on an exclusive basis and Latvia and Lithuania on a non-exclusive basis. The Company’s master franchise agreement with
NCH grants rights to the Comfort, Quality, Sleep and Clarion brand and expires in 2023. Through a separate agreement signed in 2010, we have also granted
NCH limited rights to franchise Ascend Hotel Collection hotels in its territory.
Japan. The Company conducts its operations in Japan through a master franchise relationship with Choice Hotels Japan Co. Ltd ("CHJ"). CHJ possesses
exclusive rights to develop the Comfort and Quality brands and non-exclusive rights to the Sleep and Clarion brands. The Company’s master franchise
agreement with CHJ expires in December 2023. As of December 31, 2014, CHJ had 51 open properties.
Continental Europe. The Company conducts franchising operations in Germany, Italy, Czech Republic, and portions of Switzerland through Choice
Hotels Licensing B.V. ("Choice BV"), a wholly-owned subsidiary, and in France, Portugal and the French speaking Cantons of Switzerland through a wholly-
owned subsidiary of Choice BV, Choice Hotels France SAS. At December 31, 2014, the Company's subsidiaries had 178 properties open and operating in
continental Europe.
Ireland. In August 2007, the Company entered into a master franchising agreement with Ireland-based Cordelle Enterprises, doing business as Choice
Hotels Ireland ("CHR"), for the exclusive right to develop our Clarion, Quality and Comfort brands in Ireland and Northern Ireland. The master franchise
agreement with CHR expires in 2027. As of December 31, 2014, CHR had 8 properties open and operating in Ireland and Northern Ireland.
United Kingdom. The Company conducts direct franchising operations in the United Kingdom through Choice BV. At December 31, 2014, the
Company’s subsidiary had 42 properties open and operating in the United Kingdom.
Canada. We conduct our operations in Canada for all of our brands except Cambria hotel and suites, MainStay Suites and Suburban Extended Stay
Hotel through Choice Hotels Canada Inc. ("CHC") a joint venture owned 50% by us and 50% by InnVest Management Holdings Ltd. CHC is one of the
largest lodging organizations in Canada with 309 of our franchised properties open and operating as of December 31, 2014. The Company conducts direct
franchising operations for its extended stay and Cambria Suites brands in Canada through its wholly-owned subsidiary, Choice Hotels International
Licensing ULC, and had 4 properties open and operating at December 31, 2014.
India. The Company conducts direct franchising operations in India through wholly-owned subsidiaries for the Comfort, Quality, Sleep and Clarion
brands. As of December 31, 2014, the Company had 20 franchised properties open and operating.
Australasia. The Company conducts direct franchising operations in Australia, New Zealand, and Singapore through a wholly-owned subsidiary,
Choice Hotels Australasia Pty. Ltd. ("CHA"). As of December 31, 2014, CHA had 258 franchised properties open and operating in Australasia.
Mexico. The Company’s wholly-owned subsidiary Choice Hotels Mexico S. de R.L. de C.V. ("CHM") conducts direct franchising operations in Mexico
on behalf of Choice BV, which acts as the franchisor in Mexico. CHM is focused on establishing Clarion, Quality, Sleep and Comfort brands through
conversion of hotels in Mexico. At December 31, 2014, the Company’s subsidiary had 25 properties open and operating.
15