Choice Hotels International’s second-quarter profit increased 16% from a year earlier because of more demand for rooms under its franchised Comfort Inn, Quality and Econo Lodge brands and lower administrative costs.
U.S. revenue per available room (RevPAR) rose 7.7% from a year earlier to $41.16, with nearly equal contributions from higher occupancy and increased average room rates. Comfort Suites and Rodeway brands had RevPAR increases of 8.8% and 9.4%
Choice's net income rose to $31.9 million from $27.6 million a year earlier, while revenue increased 5% to $173.6 million.
Choice Hotels, which franchises about 6,200 hotels worldwide, boosted its royalty fees by 7.2% while cutting its selling and administrative expenses as a percentage of revenue to 14% from 16% a year earlier.
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