Comfort Inn 2007 Annual Report Download - page 7

Once we have driven guests to a Choice-brand hotel, we want to
increase the likelihood consumers are satisfi ed with the experience.
We will focus on helping our owners master the customer care basics
and elevate our guest service operation to one that is positioned to take
care of guests from check in to check out with best-in-class service.
  
With continued unit growth, Choice’s franchise base gets larger and
more diverse. To meet the distinctive needs of our franchisees, we are
building deeper capabilities in franchise operations, shifting from a
“one-size-fi ts-all” approach to a more of a “needs-based” model that
provides services targeted to each owner’s property-level needs.
We are also in the process of building deeper competencies in core processes
inherent to the franchise lifecycle, including hotel openings, quality
assurance reviews, standards, training, and brand initiative implementation.
We will guide our hotel owners to the resources and systems that we have
in place that can improve their unit profi tability, including rate and revenue
management tools and enhanced operations training.
Executing against our  strategy will position us to continue our
track record of robust unit and market share growth and outstanding
fi nancial results while simultaneously strengthening our powerful
marketing and distribution platform.
We expect to continue to utilize the strong, predictable cash fl ows
that our business generates to return excess capital to our shareholders,
primarily through dividends and share repurchases. Through the end
of , the company has generated nearly $ billion of free cash
fl ow (operating cash fl ows less investing cash fl ows) since its fi rst full
year of franchise operations in  and returned these cash fl ows to
shareholders through a combination of share repurchases and dividends
over the same period. While the level and direction of these activities has
varied over time, both are core elements of our long-term approach to
shareholder value creation.
In , the Board of Directors elected to raise the annual dividend
% to . per share per quarter. For the year ended December
, , the company repurchased approximately . million shares
of its common stock at a total cost of  million under its share
repurchase program. Since the company fi rst authorized the share
repurchase program in June , it has repurchased . million shares
of common stock for a total cost of . million under its share
repurchase program. Considering the effect of a two-for-one stock split
enacted in October , the company has repurchased . million
shares at an average price of . per share.
I would also like to thank the members of our Board of Directors for
their continued guidance and support. The Board’s contributions to
the organization and its successes are signifi cant. I would also like to
welcome Dr. Scott Renschler to our Board of Directors, and I look
forward to his contributions.
As I fi nish up a decade as Choice’s chief executive offi cer, I am
extremely proud of the growth of the organization over the last ten
years. I continue to have the great pleasure to work with a group of
dedicated associates around the globe whose passion is serving our
hotel owners.
During my tenure at Choice, the organization has focused its efforts
on building a collaborative relationship with our franchisees.
Our unrelenting goal has been to maximize the success and
profi tability of each Choice owner by delivering business to their
hotels and providing a wealth of value-added centralized services.
This focus on the franchisee is the linchpin that has enabled us to
build a successful and profi table business that has grown in a variety
of economic and industry environments.
Our franchisee satisfaction ratings remain robust, with % of our
owners giving us a high rating as a franchisor and a franchisee
retention rate exceeding %. Satisfi ed customers make repeat
purchases. The focus on franchisee return on investment and
reservations delivery continues to fuel additional franchise sales
and accelerate market share growth.
The combination of ten well-positioned and powerful brands; a
leadership position in a growing, high-barrier-to-entry industry; proven
business model; franchise development expertise; and strong owner
relations positions us extremely well for continued profi table growth.
I thank you for your support of Choice Hotels International and I look
forward to a great .
CHARLES A. LEDSINGER, JR.
Vice Chairman and Chief Executive Offi cer
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