(State or other jurisdiction of incorporation) | (IRS Employer Identification Number) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Title of Each Class | Ticker Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
Date: | /s/ Dominic E. Dragisich | |||||||||||||||||||
Dominic E. Dragisich | ||||||||||||||||||||
Chief Financial Officer |
Choice Hotels International, Inc. and Subsidiaries | Exhibit 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
Variance | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||||||||||||||||
Royalty fees | $ | 106,242 | $ | 50,152 | $ | 56,090 | 112 | % | $ | 172,289 | $ | 120,491 | $ | 51,798 | 43 | % | ||||||||||||||||||||||||||||||||||
Initial franchise and relicensing fees | 7,328 | 6,676 | 652 | 10 | % | 12,755 | 13,960 | (1,205) | (9) | % | ||||||||||||||||||||||||||||||||||||||||
Procurement services | 12,092 | 10,697 | 1,395 | 13 | % | 23,283 | 24,494 | (1,211) | (5) | % | ||||||||||||||||||||||||||||||||||||||||
Marketing and reservation system | 135,988 | 79,677 | 56,311 | 71 | % | 227,509 | 190,062 | 37,447 | 20 | % | ||||||||||||||||||||||||||||||||||||||||
Owned hotels | 8,993 | 2,108 | 6,885 | 327 | % | 13,347 | 11,530 | 1,817 | 16 | % | ||||||||||||||||||||||||||||||||||||||||
Other | 7,701 | 2,423 | 5,278 | 218 | % | 12,108 | 9,371 | 2,737 | 29 | % | ||||||||||||||||||||||||||||||||||||||||
Total revenues | 278,344 | 151,733 | 126,611 | 83 | % | 461,291 | 369,908 | 91,383 | 25 | % | ||||||||||||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 34,470 | 43,935 | (9,465) | (22) | % | 64,737 | 72,318 | (7,581) | (10) | % | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 6,232 | 6,398 | (166) | (3) | % | 12,594 | 12,927 | (333) | (3) | % | ||||||||||||||||||||||||||||||||||||||||
Marketing and reservation system | 113,285 | 89,309 | 23,976 | 27 | % | 211,458 | 219,756 | (8,298) | (4) | % | ||||||||||||||||||||||||||||||||||||||||
Owned hotels | 5,333 | 2,976 | 2,357 | 79 | % | 9,480 | 9,010 | 470 | 5 | % | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 159,320 | 142,618 | 16,702 | 12 | % | 298,269 | 314,011 | (15,742) | (5) | % | ||||||||||||||||||||||||||||||||||||||||
Loss on impairment of assets | — | (1,226) | 1,226 | (100) | % | — | (1,226) | 1,226 | (100) | % | ||||||||||||||||||||||||||||||||||||||||
Operating income | 119,024 | 7,889 | 111,135 | 1409 | % | 163,022 | 54,671 | 108,351 | 198 | % | ||||||||||||||||||||||||||||||||||||||||
OTHER INCOME AND EXPENSES, NET | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 11,691 | 13,082 | (1,391) | (11) | % | 23,468 | 24,462 | (994) | (4) | % | ||||||||||||||||||||||||||||||||||||||||
Interest income | (1,234) | (2,245) | 1,011 | (45) | % | (2,515) | (4,533) | 2,018 | (45) | % | ||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | NM | — | 607 | (607) | (100) | % | |||||||||||||||||||||||||||||||||||||||||
Other (gains) losses | (2,108) | (3,556) | 1,448 | (41) | % | (3,313) | 1,173 | (4,486) | 382 | % | ||||||||||||||||||||||||||||||||||||||||
Equity in net (gain) loss of affiliates | (1,179) | 3,486 | (4,665) | 134 | % | 4,818 | 5,441 | (623) | (11) | % | ||||||||||||||||||||||||||||||||||||||||
Total other income and expenses, net | 7,170 | 10,767 | (3,597) | (33) | % | 22,458 | 27,150 | (4,692) | (17) | % | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 111,854 | (2,878) | 114,732 | 3987 | % | 140,564 | 27,521 | 113,043 | 411 | % | ||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 25,972 | (437) | 26,409 | 6043 | % | 32,345 | (25,501) | 57,846 | 227 | % | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 85,882 | $ | (2,441) | $ | 88,323 | 3618 | % | $ | 108,219 | $ | 53,022 | $ | 55,197 | 104 | % | ||||||||||||||||||||||||||||||||||
Basic earnings (losses) per share | $ | 1.54 | $ | (0.04) | $ | 1.58 | 3604 | % | $ | 1.95 | $ | 0.96 | $ | 0.99 | 104 | % | ||||||||||||||||||||||||||||||||||
Diluted earnings (losses) per share | $ | 1.53 | $ | (0.04) | $ | 1.57 | 3579 | % | $ | 1.93 | $ | 0.95 | $ | 0.98 | 103 | % |
Choice Hotels International, Inc. and Subsidiaries | Exhibit 2 | |||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands, except per share amounts) | June 30, | December 31, | ||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 307,975 | $ | 234,779 | ||||||||||||||||
Accounts receivable, net | 201,038 | 149,921 | ||||||||||||||||||
Other current assets | 98,527 | 48,214 | ||||||||||||||||||
Total current assets | 607,540 | 432,914 | ||||||||||||||||||
Property and equipment, net | 342,121 | 334,901 | ||||||||||||||||||
Intangible assets, net | 307,559 | 303,725 | ||||||||||||||||||
Goodwill | 159,196 | 159,196 | ||||||||||||||||||
Notes receivable, net of allowances | 67,922 | 95,785 | ||||||||||||||||||
Investments in unconsolidated entities | 42,793 | 57,879 | ||||||||||||||||||
Operating lease right-of-use assets | 13,163 | 17,688 | ||||||||||||||||||
Investments, employee benefit plans, at fair value | 31,484 | 29,104 | ||||||||||||||||||
Other assets | 157,016 | 156,141 | ||||||||||||||||||
Total assets | $ | 1,728,794 | $ | 1,587,333 | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
Accounts payable | $ | 90,407 | $ | 83,329 | ||||||||||||||||
Accrued expenses and other current liabilities | 103,160 | 78,920 | ||||||||||||||||||
Deferred revenue | 63,394 | 50,290 | ||||||||||||||||||
Liability for guest loyalty program | 59,014 | 43,308 | ||||||||||||||||||
Total current liabilities | 315,975 | 255,847 | ||||||||||||||||||
Long-term debt | 1,059,602 | 1,058,738 | ||||||||||||||||||
Deferred revenue | 113,392 | 122,406 | ||||||||||||||||||
Liability for guest loyalty program | 60,591 | 77,071 | ||||||||||||||||||
Operating lease liabilities | 7,822 | 12,739 | ||||||||||||||||||
Deferred compensation & retirement plan obligations | 36,010 | 33,756 | ||||||||||||||||||
Other liabilities | 30,469 | 32,528 | ||||||||||||||||||
Total liabilities | 1,623,861 | 1,593,085 | ||||||||||||||||||
Total shareholders' equity (deficit) | 104,933 | (5,752) | ||||||||||||||||||
Total liabilities and shareholders' equity (deficit) | $ | 1,728,794 | $ | 1,587,333 | ||||||||||||||||
Choice Hotels International, Inc. and Subsidiaries | Exhibit 3 | ||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
(In thousands) | Six Months Ended June 30, | ||||||||||
2021 | 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 108,219 | $ | 53,022 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 12,594 | 12,927 | |||||||||
Depreciation and amortization - marketing and reservation system | 12,076 | 9,585 | |||||||||
Franchise agreement acquisition cost amortization | 6,294 | 5,558 | |||||||||
Loss on asset disposition and impairments | — | 1,226 | |||||||||
Loss on debt extinguishment | — | 607 | |||||||||
Non-cash stock compensation and other charges | 16,295 | 458 | |||||||||
Non-cash interest and other investment (income) loss | (6,824) | 1,097 | |||||||||
Deferred income taxes | (3,465) | (27,098) | |||||||||
Equity in net losses from unconsolidated joint ventures, less distributions received | 7,398 | 5,588 | |||||||||
Franchise agreement acquisition costs, net of reimbursements | (18,078) | (12,567) | |||||||||
Change in working capital and other | (32,102) | (48,951) | |||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 102,407 | 1,452 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Investment in property and equipment | (23,393) | (21,094) | |||||||||
Investment in intangible assets | (2,976) | (830) | |||||||||
Contributions to equity method investments | (1,136) | (2,997) | |||||||||
Distributions from equity method investments | — | 3,113 | |||||||||
Proceeds from sale of equity method investments | 11,830 | — | |||||||||
Purchases of investments, employee benefit plans | (931) | (1,932) | |||||||||
Proceeds from sales of investments, employee benefit plans | 1,994 | 1,901 | |||||||||
Purchase/issuance of notes receivable | (17,918) | (7,730) | |||||||||
Collections of notes receivable | 63 | 63 | |||||||||
Other items, net | (486) | (27) | |||||||||
NET CASH USED IN INVESTING ACTIVITIES | (32,953) | (29,533) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net borrowings pursuant to revolving credit facilities | — | 170,300 | |||||||||
Net borrowings pursuant to term loan | — | 249,500 | |||||||||
Principal payments on long-term debt | — | (33,369) | |||||||||
Purchases of treasury stock | (5,362) | (54,536) | |||||||||
Dividends paid | — | (25,228) | |||||||||
Debt issuance costs | — | (492) | |||||||||
Proceeds from exercise of stock options | 9,115 | 2,768 | |||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 3,753 | 308,943 | |||||||||
Net change in cash and cash equivalents | 73,207 | 280,862 | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (11) | (489) | |||||||||
Cash and cash equivalents at beginning of period | 234,779 | 33,766 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 307,975 | $ | 314,139 |
Exhibit 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DOMESTIC HOTEL SYSTEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2021 | For the Six Months Ended June 30, 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Daily | Average Daily | Average Daily | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate | Occupancy | RevPAR | Rate | Occupancy | RevPAR | Rate | Occupancy | RevPAR | |||||||||||||||||||||||||||||||||||||||||||||||||||
Comfort(1) | $ | 89.83 | 57.2 | % | $ | 51.36 | $ | 84.20 | 42.6 | % | $ | 35.85 | 6.7 | % | 1,460 | bps | 43.3 | % | |||||||||||||||||||||||||||||||||||||||||
Sleep | 80.68 | 56.0 | % | 45.20 | 76.92 | 43.5 | % | 33.46 | 4.9 | % | 1,250 | bps | 35.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Quality | 77.41 | 50.7 | % | 39.21 | 71.07 | 38.7 | % | 27.49 | 8.9 | % | 1,200 | bps | 42.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Clarion(2) | 79.03 | 39.7 | % | 31.37 | 72.51 | 31.4 | % | 22.75 | 9.0 | % | 830 | bps | 37.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Econo Lodge | 63.54 | 48.2 | % | 30.61 | 57.15 | 38.1 | % | 21.79 | 11.2 | % | 1,010 | bps | 40.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Rodeway | 63.53 | 49.6 | % | 31.49 | 58.39 | 40.9 | % | 23.87 | 8.8 | % | 870 | bps | 31.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
WoodSpring Suites | 49.03 | 80.1 | % | 39.26 | 45.99 | 69.7 | % | 32.07 | 6.6 | % | 1,040 | bps | 22.4 | % | |||||||||||||||||||||||||||||||||||||||||||||
MainStay | 75.34 | 59.5 | % | 44.83 | 76.21 | 51.3 | % | 39.07 | (1.1) | % | 820 | bps | 14.7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Suburban | 51.97 | 70.5 | % | 36.62 | 52.52 | 61.4 | % | 32.24 | (1.0) | % | 910 | bps | 13.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Cambria Hotels | 116.93 | 50.8 | % | 59.40 | 120.89 | 36.7 | % | 44.41 | (3.3) | % | 1,410 | bps | 33.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
Ascend Hotel Collection | 123.91 | 50.1 | % | 62.04 | 115.48 | 39.7 | % | 45.89 | 7.3 | % | 1,040 | bps | 35.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 77.09 | 54.8 | % | $ | 42.23 | $ | 71.08 | 42.7 | % | $ | 30.33 | 8.5 | % | 1,210 | bps | 39.2 | % | |||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2021 | For the Three Months Ended June 30, 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Daily | Average Daily | Average Daily | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate | Occupancy | RevPAR | Rate | Occupancy | RevPAR | Rate | Occupancy | RevPAR | |||||||||||||||||||||||||||||||||||||||||||||||||||
Comfort(1) | $ | 96.67 | 65.3 | % | $ | 63.11 | $ | 79.57 | 36.6 | % | $ | 29.10 | 21.5 | % | 2,870 | bps | 116.9 | % | |||||||||||||||||||||||||||||||||||||||||
Sleep | 86.47 | 64.2 | % | 55.54 | 74.38 | 37.9 | % | 28.18 | 16.3 | % | 2,630 | bps | 97.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Quality | 82.72 | 59.0 | % | 48.80 | 68.97 | 35.5 | % | 24.51 | 19.9 | % | 2,350 | bps | 99.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Clarion(2) | 85.75 | 46.2 | % | 39.62 | 69.24 | 25.6 | % | 17.71 | 23.8 | % | 2,060 | bps | 123.7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Econo Lodge | 67.47 | 54.9 | % | 37.04 | 57.05 | 37.9 | % | 21.64 | 18.3 | % | 1,700 | bps | 71.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
Rodeway | 67.15 | 55.4 | % | 37.18 | 57.10 | 40.9 | % | 23.36 | 17.6 | % | 1,450 | bps | 59.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
WoodSpring Suites | 50.49 | 85.8 | % | 43.31 | 44.96 | 69.2 | % | 31.09 | 12.3 | % | 1,660 | bps | 39.3 | % | |||||||||||||||||||||||||||||||||||||||||||||
MainStay | 79.01 | 67.6 | % | 53.38 | 73.82 | 48.6 | % | 35.86 | 7.0 | % | 1,900 | bps | 48.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Suburban | 54.03 | 75.3 | % | 40.67 | 50.79 | 60.9 | % | 30.95 | 6.4 | % | 1,440 | bps | 31.4 | % | |||||||||||||||||||||||||||||||||||||||||||||
Cambria Hotels | 127.76 | 58.6 | % | 74.82 | 96.82 | 24.2 | % | 23.46 | 32.0 | % | 3,440 | bps | 218.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Ascend Hotel Collection | 133.07 | 56.9 | % | 75.68 | 109.46 | 32.2 | % | 35.24 | 21.6 | % | 2,470 | bps | 114.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 82.72 | 62.3 | % | $ | 51.54 | $ | 67.21 | 39.1 | % | $ | 26.27 | 23.1 | % | 2,320 | bps | 96.2 | % | |||||||||||||||||||||||||||||||||||||||||
Effective Royalty Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Quarter Ended | For the Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
System-wide(3) | 5.01 | % | 4.94 | % | 5.01 | % | 4.94 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Includes Comfort family of brand extensions including Comfort and Comfort Suites | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes Clarion family of brand extensions including Clarion and Clarion Pointe | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Includes United States and Caribbean countries and territories |
Exhibit 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DOMESTIC HOTEL SYSTEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2021 | For the Six Months Ended June 30, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Daily | Average Daily | Average Daily | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate | Occupancy | RevPAR | Rate | Occupancy | RevPAR | Rate | Occupancy | RevPAR | |||||||||||||||||||||||||||||||||||||||||||||||||||
Comfort(1) | $ | 89.83 | 57.2 | % | $ | 51.36 | $ | 95.08 | 61.6 | % | $ | 58.62 | (5.5) | % | (440) | bps | (12.4) | % | |||||||||||||||||||||||||||||||||||||||||
Sleep | 80.68 | 56.0 | % | 45.20 | 85.49 | 61.3 | % | 52.37 | (5.6) | % | (530) | bps | (13.7) | % | |||||||||||||||||||||||||||||||||||||||||||||
Quality | 77.41 | 50.7 | % | 39.21 | 79.12 | 53.4 | % | 42.28 | (2.2) | % | (270) | bps | (7.3) | % | |||||||||||||||||||||||||||||||||||||||||||||
Clarion(2) | 79.03 | 39.7 | % | 31.37 | 83.13 | 49.1 | % | 40.82 | (4.9) | % | (940) | bps | (23.2) | % | |||||||||||||||||||||||||||||||||||||||||||||
Econo Lodge | 63.54 | 48.2 | % | 30.61 | 62.51 | 46.9 | % | 29.34 | 1.6 | % | 130 | bps | 4.3 | % | |||||||||||||||||||||||||||||||||||||||||||||
Rodeway | 63.53 | 49.6 | % | 31.49 | 63.16 | 48.4 | % | 30.55 | 0.6 | % | 120 | bps | 3.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
WoodSpring Suites | 49.03 | 80.1 | % | 39.26 | 46.63 | 76.6 | % | 35.73 | 5.1 | % | 350 | bps | 9.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
MainStay | 75.34 | 59.5 | % | 44.83 | 85.39 | 63.4 | % | 54.10 | (11.8) | % | (390) | bps | (17.1) | % | |||||||||||||||||||||||||||||||||||||||||||||
Suburban | 51.97 | 70.5 | % | 36.62 | 58.77 | 69.3 | % | 40.74 | (11.6) | % | 120 | bps | (10.1) | % | |||||||||||||||||||||||||||||||||||||||||||||
Cambria Hotels | 116.93 | 50.8 | % | 59.40 | 144.68 | 68.2 | % | 98.88 | (19.2) | % | (1,740) | bps | (39.9) | % | |||||||||||||||||||||||||||||||||||||||||||||
Ascend Hotel Collection | 123.91 | 50.1 | % | 62.04 | 121.41 | 60.0 | % | 72.84 | 2.1 | % | (990) | bps | (14.8) | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 77.09 | 54.8 | % | $ | 42.23 | $ | 80.85 | 57.2 | % | $ | 46.26 | (4.7) | % | (240) | bps | (8.7) | % | |||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2021 | For the Three Months Ended June 30, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Daily | Average Daily | Average Daily | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate | Occupancy | RevPAR | Rate | Occupancy | RevPAR | Rate | Occupancy | RevPAR | |||||||||||||||||||||||||||||||||||||||||||||||||||
Comfort(1) | $ | 96.67 | 65.3 | % | $ | 63.11 | $ | 98.60 | 67.3 | % | $ | 66.34 | (2.0) | % | -200 | bps | (4.9) | % | |||||||||||||||||||||||||||||||||||||||||
Sleep | 86.47 | 64.2 | % | 55.54 | 88.08 | 66.7 | % | 58.75 | (1.8) | % | -250 | bps | (5.5) | % | |||||||||||||||||||||||||||||||||||||||||||||
Quality | 82.72 | 59.0 | % | 48.80 | 81.69 | 58.7 | % | 47.98 | 1.3 | % | 30 | bps | 1.7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Clarion(2) | 85.75 | 46.2 | % | 39.62 | 86.78 | 54.9 | % | 47.67 | (1.2) | % | -870 | bps | (16.9) | % | |||||||||||||||||||||||||||||||||||||||||||||
Econo Lodge | 67.47 | 54.9 | % | 37.04 | 64.93 | 51.6 | % | 33.51 | 3.9 | % | 330 | bps | 10.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Rodeway | 67.15 | 55.4 | % | 37.18 | 65.20 | 52.2 | % | 34.02 | 3.0 | % | 320 | bps | 9.3 | % | |||||||||||||||||||||||||||||||||||||||||||||
WoodSpring Suites | 50.49 | 85.8 | % | 43.31 | 47.79 | 78.2 | % | 37.35 | 5.6 | % | 760 | bps | 16.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
MainStay | 79.01 | 67.6 | % | 53.38 | 87.83 | 67.9 | % | 59.62 | (10.0) | % | -30 | bps | (10.5) | % | |||||||||||||||||||||||||||||||||||||||||||||
Suburban | 54.03 | 75.3 | % | 40.67 | 59.15 | 71.0 | % | 41.96 | (8.7) | % | 430 | bps | (3.1) | % | |||||||||||||||||||||||||||||||||||||||||||||
Cambria Hotels | 127.76 | 58.6 | % | 74.82 | 152.89 | 74.8 | % | 114.43 | (16.4) | % | -1,620 | bps | (34.6) | % | |||||||||||||||||||||||||||||||||||||||||||||
Ascend Hotel Collection | 133.07 | 56.9 | % | 75.68 | 125.87 | 63.3 | % | 79.70 | 5.7 | % | -640 | bps | (5.0) | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 82.72 | 62.3 | % | $ | 51.54 | $ | 83.88 | 62.1 | % | $ | 52.11 | (1.4) | % | 20 | bps | (1.1) | % | |||||||||||||||||||||||||||||||||||||||||
Effective Royalty Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Quarter Ended | For the Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2019 | June 30, 2021 | June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
System-wide(3) | 5.01 | % | 4.84 | % | 5.02 | % | 4.84 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Includes Comfort family of brand extensions including Comfort and Comfort Suites | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes Clarion family of brand extensions including Clarion and Clarion Pointe | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Includes United States and Caribbean countries and territories |
Exhibit 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | Variance | ||||||||||||||||||||||||||||||||||||||||||||||||
Hotels | Rooms | Hotels | Rooms | Hotels | Rooms | % | % | |||||||||||||||||||||||||||||||||||||||||||
Comfort(1) | 1,661 | 130,762 | 1,620 | 127,583 | 41 | 3,179 | 2.5 | % | 2.5 | % | ||||||||||||||||||||||||||||||||||||||||
Sleep | 411 | 29,027 | 399 | 28,251 | 12 | 776 | 3.0 | % | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||
Quality | 1,681 | 126,603 | 1,690 | 128,909 | (9) | (2,306) | (0.5) | % | (1.8) | % | ||||||||||||||||||||||||||||||||||||||||
Clarion(2) | 180 | 21,702 | 179 | 22,651 | 1 | (949) | 0.6 | % | (4.2) | % | ||||||||||||||||||||||||||||||||||||||||
Econo Lodge | 747 | 45,096 | 779 | 46,992 | (32) | (1,896) | (4.1) | % | (4.0) | % | ||||||||||||||||||||||||||||||||||||||||
Rodeway | 532 | 30,683 | 578 | 33,107 | (46) | (2,424) | (8.0) | % | (7.3) | % | ||||||||||||||||||||||||||||||||||||||||
WoodSpring Suites | 298 | 35,876 | 281 | 33,797 | 17 | 2,079 | 6.0 | % | 6.2 | % | ||||||||||||||||||||||||||||||||||||||||
MainStay | 93 | 6,559 | 73 | 4,629 | 20 | 1,930 | 27.4 | % | 41.7 | % | ||||||||||||||||||||||||||||||||||||||||
Suburban | 69 | 6,349 | 60 | 6,082 | 9 | 267 | 15.0 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||
Cambria Hotels | 58 | 8,166 | 51 | 7,347 | 7 | 819 | 13.7 | % | 11.1 | % | ||||||||||||||||||||||||||||||||||||||||
Ascend Hotel Collection | 225 | 28,258 | 207 | 22,136 | 18 | 6,122 | 8.7 | % | 27.7 | % | ||||||||||||||||||||||||||||||||||||||||
Domestic Franchises(3) | 5,955 | 469,081 | 5,917 | 461,484 | 38 | 7,597 | 0.6 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||
International Franchises | 1,156 | 132,164 | 1,201 | 135,534 | (45) | (3,370) | (3.7) | % | (2.5) | % | ||||||||||||||||||||||||||||||||||||||||
Total Franchises | 7,111 | 601,245 | 7,118 | 597,018 | (7) | 4,227 | (0.1) | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||
(1) Includes Comfort family of brand extensions including Comfort and Comfort Suites | ||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes Clarion family of brand extensions including Clarion and Clarion Pointe | ||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Includes United States and Caribbean countries and territories | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exhibit 7 | |||||||||||||||||||||||||||||
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
REVENUES, EXCLUDING MARKETING AND RESERVATION ACTIVITIES | |||||||||||||||||||||||||||||
(dollar amounts in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Revenues, Excluding Marketing and Reservation Activities | |||||||||||||||||||||||||||||
Total Revenues | $ | 278,344 | $ | 151,733 | $ | 461,291 | $ | 369,908 | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Marketing and reservation system revenues | (135,988) | (79,677) | (227,509) | (190,062) | |||||||||||||||||||||||||
Revenues, excluding marketing and reservation activities | $ | 142,356 | $ | 72,056 | $ | 233,782 | $ | 179,846 | |||||||||||||||||||||
ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||||||||||||||||||||
(dollar amounts in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Total Selling, General and Administrative Expenses | $ | 34,470 | $ | 43,935 | $ | 64,737 | $ | 72,318 | |||||||||||||||||||||
Mark to market adjustments on non-qualified retirement plan investments | (2,037) | (3,553) | (3,462) | 781 | |||||||||||||||||||||||||
Operational restructuring charges | (379) | (7,154) | (724) | (8,518) | |||||||||||||||||||||||||
Share-based compensation | (3,032) | (1,016) | (5,383) | 141 | |||||||||||||||||||||||||
Exceptional allowances attributable to COVID-19 | (1,964) | (2,678) | (2,097) | (2,678) | |||||||||||||||||||||||||
Adjusted Selling, General and Administrative Expenses | $ | 27,058 | $ | 29,534 | $ | 53,071 | $ | 62,044 | |||||||||||||||||||||
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") AND ADJUSTED EBITDA MARGINS | |||||||||||||||||||||||||||||
(dollar amounts in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Net income | $ | 85,882 | $ | (2,441) | $ | 108,219 | $ | 53,022 | |||||||||||||||||||||
Income tax expense (benefit) | 25,972 | (437) | 32,345 | (25,501) | |||||||||||||||||||||||||
Interest expense | 11,691 | 13,082 | 23,468 | 24,462 | |||||||||||||||||||||||||
Interest income | (1,234) | (2,245) | (2,515) | (4,533) | |||||||||||||||||||||||||
Other (gains) losses | (2,108) | (3,556) | (3,313) | 1,173 | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 607 | |||||||||||||||||||||||||
Equity in operating net loss of affiliates, net of impairments | 1,398 | 3,486 | 2,590 | 5,441 | |||||||||||||||||||||||||
Loss on impairment of unconsolidated joint venture | — | — | 4,805 | — | |||||||||||||||||||||||||
Gain on sale of unconsolidated joint venture | (2,577) | — | (2,577) | — | |||||||||||||||||||||||||
Depreciation and amortization | 6,232 | 6,398 | 12,594 | 12,927 | |||||||||||||||||||||||||
Loss on impairment of assets | — | 1,226 | — | 1,226 | |||||||||||||||||||||||||
Mark to market adjustments on non-qualified retirement plan investments | 2,037 | 3,553 | 3,462 | (781) | |||||||||||||||||||||||||
Operational restructuring charges | 379 | 7,154 | 724 | 8,518 | |||||||||||||||||||||||||
Share-based compensation | 3,032 | 1,016 | 5,383 | (141) | |||||||||||||||||||||||||
Exceptional allowances attributable to COVID-19 | 1,964 | 2,678 | 2,097 | 2,678 | |||||||||||||||||||||||||
Marketing and reservation system reimbursable (surplus) deficit | (22,703) | 9,632 | (16,051) | 29,694 | |||||||||||||||||||||||||
Franchise agreement acquisition costs amortization | 1,847 | 1,579 | 3,573 | 3,177 | |||||||||||||||||||||||||
Adjusted EBITDA | $ | 111,812 | $ | 41,125 | $ | 174,804 | $ | 111,969 | |||||||||||||||||||||
Revenues, excluding marketing and reservation activities | $ | 142,356 | $ | 72,056 | $ | 233,782 | $ | 179,846 | |||||||||||||||||||||
Adjusted EBITDA margins | 78.5 | % | 57.1 | % | 74.8 | % | 62.3 | % | |||||||||||||||||||||
ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) | |||||||||||||||||||||||||||||
(dollar amounts in thousands, except per share amounts) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Net income | $ | 85,882 | $ | (2,441) | $ | 108,219 | $ | 53,022 | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Loss on impairment of assets | — | 539 | — | 1,037 | |||||||||||||||||||||||||
Loss on impairment of unconsolidated joint venture | — | — | 3,694 | — | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 513 | |||||||||||||||||||||||||
Gain on sale of interest in unconsolidated joint venture | (1,976) | — | (1,981) | — | |||||||||||||||||||||||||
Operational restructuring costs | 283 | 3,196 | 542 | 7,229 | |||||||||||||||||||||||||
Exceptional allowances attributable to COVID-19 | 1,506 | 1,176 | 1,613 | 2,264 | |||||||||||||||||||||||||
Marketing and reservation system reimbursable (surplus) deficit | (17,406) | 4,231 | (12,341) | 25,106 | |||||||||||||||||||||||||
Foreign tax benefit on international restructuring | — | — | — | (30,572) | |||||||||||||||||||||||||
Adjusted Net Income | $ | 68,289 | $ | 6,701 | $ | 99,746 | $ | 58,599 | |||||||||||||||||||||
Diluted Earnings Per Share | $ | 1.53 | $ | (0.04) | $ | 1.93 | $ | 0.95 | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Loss on impairment of assets | — | 0.01 | — | 0.02 | |||||||||||||||||||||||||
Loss on impairment of unconsolidated joint venture | — | — | 0.07 | — | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 0.01 | |||||||||||||||||||||||||
Gain on sale of interest in unconsolidated joint venture | (0.04) | — | (0.04) | — | |||||||||||||||||||||||||
Operational restructuring costs | 0.01 | 0.06 | 0.01 | 0.13 | |||||||||||||||||||||||||
Exceptional allowances attributable to COVID-19 | 0.03 | 0.02 | 0.03 | 0.04 | |||||||||||||||||||||||||
Marketing and reservation system reimbursable (surplus) deficit | (0.31) | 0.08 | (0.22) | 0.45 | |||||||||||||||||||||||||
Foreign tax benefit on international restructuring | — | — | — | (0.55) | |||||||||||||||||||||||||
Adjusted Diluted Earnings Per Share (EPS) | $ | 1.22 | $ | 0.13 | $ | 1.78 | $ | 1.05 | |||||||||||||||||||||
Document and Entity Information Document |
Aug. 05, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 05, 2021 |
Entity File Number | 001-13393 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 52-1209792 |
Entity Address, Address Line One | 1 Choice Hotels Circle |
Entity Address, Address Line Two | Suite 400 |
Entity Address, City or Town | Rockville |
Entity Address, State or Province | MD |
Entity Address, Postal Zip Code | 20850 |
City Area Code | 301 |
Local Phone Number | 592-5000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, Par Value $0.01 per share |
Trading Symbol | CHH |
Security Exchange Name | NYSE |
Entity Registrant Name | CHOICE HOTELS INTERNATIONAL INC / DE |
Entity Central Index Key | 0001046311 |
Amendment Flag | false |
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