Comfort Inn 2014 Annual Report Download - page 25

Table of Contents
Franchise Growth and Performance of Choice from December 2005 until January 2007. He was Senior Vice President, Development of Choice from January
2005 until December 2005. He was Vice President, Franchise Sales from June 2002 until January 2005. He was Vice President, Franchise Sales with USFS in
Atlanta, Georgia from 1996 through June 2002.
Patrick J. Cimerola. Senior Vice President, Human Resources and Administration since September 2009. He was Vice President of Human Resources
from January 2003 to September 2009. He was Sr. Director of Human Resources from January 2002 to January 2003.
Scott E. Oaksmith. Controller of the Company since September 2006. He was Senior Director & Assistant Controller of Choice from February 2004 to
September 2006. He was Director, Marketing and Reservations, Finance from October 2002 until February 2004. Prior to joining the Company, he was
employed by American Express Tax & Business Services, Inc. from January 1994 to October 2002, last serving as Senior Manager from October 2000 to
October 2002.
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Choice Hotels International, Inc. and its subsidiaries are subject to various risks, which could have a negative effect on the Company and its financial
condition. These risks could cause actual operating results to differ from those expressed in certain “forward looking statements” contained in this Form 10-K
as well as in other Company communications. Before you invest in our securities you should carefully consider these risk factors together with all other
information included in our publicly filed documents.
We are subject to the operating risks common in the lodging and franchising industries.
A significant portion of our revenue is derived from fees based on room revenues at hotels franchised under our brands. As such, our business is subject,
directly or through our franchisees, to the following risks common in the lodging and franchising industry, among others:
• changes in the number of hotels operating under franchised brands;
• changes in the relative mix of franchised hotels in the various lodging industry price categories;
• changes in occupancy and room rates achieved by hotels;
• desirability of hotel geographic location;
• changes in general and local economic and market conditions, which can adversely affect the level of business and leisure travel, and therefore
the demand for lodging and related services;
• level of consumer unemployment;
• increases in operating costs that may not be able to be offset by increases in room rates, such as through increases in minimum wage levels;
• increases in corporate-level operating costs resulting in lower operating margins;
• over-building in one or more sectors of the hotel industry and/or in one or more geographic regions, could lead to excess supply compared to
demand, and to decreases in hotel occupancy and/or room rates;
• the availability and cost of capital to allow hotel owners and developers to build new hotels and fund investments;
• changes in travel patterns;
• travelers’ fears of exposure to contagious diseases or insect infestations in hotel rooms;
• changes in governmental regulations that influence or determine wages, benefits, prices or increase operating, maintenance or construction costs
of our franchisees;
• changes by governmental agencies and within relevant legal systems of prevailing opinion and interpretation of new or existing rules,
regulations and legal doctrine, particularly those limiting the liability of franchisors for employment and general liability claims involving
franchisees;
• travel restrictions (whether security-related or otherwise) imposed by governmental authorities that have the effect of discouraging or limiting
travel to and from certain jurisdictions;
• the costs and administrative burdens associated with compliance with applicable laws and regulations, including, among others, franchising,
lending, privacy, marketing and sales, licensing, labor, climate change, employment and regulations applicable under the Office of Foreign
Asset Control and the Foreign Corrupt Practices Act;
• the financial condition of franchisees and travel related companies;
• franchisors’ ability to develop and maintain positive relations with current and potential franchisees; and
• changes in exchange rates or sustained economic weakness in the United States (affecting domestic travel) and internationally could also
unfavorably impact future results.
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