Comfort Inn 2014 Annual Report Download - page 44
Download and view the complete annual report
Please find page 44 of the 2014 Comfort Inn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34 -
35 -
36 -
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45 -
46 -
47 -
48 -
49 -
50 -
51 -
52 -
53 -
54 -
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
 |
 |
Table of Contents
$19.7 million or 7% increase in royalty revenues, an $0.8 million increase in initial franchise and relicensing fees, a $3.2 million or 15% increase in
procurement services fees and a $4.1 million increase in other revenues.
Royalty Fees
Domestic royalty fees for the year ended December 31, 2014 increased $19.9 million to $263.0 million from $243.1 million in 2013, an increase of 8%.
The increase in domestic royalties is attributable to an 8.5% increase in domestic RevPAR partially offset by 0.5% decrease in the number of domestic
franchised hotel rooms and a decline in the effective royalty rate. The Company's effective royalty rate of the domestic hotel system decreased from 4.33% to
4.28% from 2013 to 2014. System-wide RevPAR increased due to a 310 basis point increase in occupancy rates and a 3.0% increase in average daily rates.
A summary of the Company’s domestic franchised hotels operating information for the years ending December 31, 2014 and 2013 is as follows:
Comfort
Inn
$ 83.27
60.1%
$ 50.05
3.4%
320 bps
8.9%
Comfort
Suites
86.99
62.9%
54.75
3.7%
360 bps
9.6%
Sleep
74.39
58.7%
43.66
3.7%
380 bps
10.5%
Quality
70.22
53.1%
37.27
2.5%
300 bps
8.4%
Clarion
75.15
51.2%
38.46
3.3%
330 bps
10.1%
Econo
Lodge
56.51
48.8%
27.55
2.4%
280 bps
8.4%
Rodeway
54.28
51.9%
28.14
4.4%
320 bps
11.1%
MainStay
72.44
68.1%
49.36
3.3%
330 bps
8.2%
Suburban
42.67
70.2%
29.96
6.0%
160 bps
8.5%
Ascend
Hotel
Collection
119.76
64.0%
76.60
1.4%
(370) bps
(4.4)%
$ 74.76
56.4%
$ 42.20
3.0%
310 bps
8.5%
____________________________
* Operating statistics exclude Cambria hotels & suites 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.
The number of domestic rooms on-line decreased to 398,661 rooms as of December 31, 2014 from 400,585 as of December 31, 2013 a decline of 1,924
rooms or 0.5%. The total number of domestic hotels on-line increased by 41 units or 0.8% to 5,221 as of December 31, 2014 from 5,180 as of December 31,
2013. The decline in the number of rooms in the domestic system primarily reflects the Company's multi-year strategy to rejuvenate the Comfort family of
brands by terminating or repositioning to more suitable brands under-performing hotels that no longer meet the Comfort brand standards. While the total
number of domestic units on-line continues to grow, the unit growth has been driven primarily by brands with lower average room counts than the Comfort
brand.
44