The good news keeps rolling for hotel companies reporting their third quarters. Yesterday, we reported on LaSalle Hotel Properties, IHG and La Quinta's propitious third quarters, today it's Pebblebrook Hotel Trust, Wyndham Worldwide and Choice Hotels International.
Choice Hotels reported earnings of $39.4 million in its third quarter. The Rockville, Md.-based hotel franchiser also posted revenue of $215.2 million in the period.
Choice reported momentum for new hotel development at the 20th annual Lodging Conference. The company heralded several initiatives driving interest in new construction for Choice-branded hotels—mainly driven by the Comfort brand's transformation, a new dual-brand lodging concept and the Ascend Hotel Collection brand.
"We are reaping rewards from a strategic synchronization of events. An extremely favorable market for lodging investment, pent up demand for new supply in the right markets and proven brand strategies are driving development in a big way," said Stephen Joyce, president and CEO of Choice Hotels International. "The confluence of all of this has Choice Hotels well positioned for even more compelling growth."
For Wyndham Hotel Group, revenues were $315 million in the third quarter, a 6-percent increase over the third quarter of 2013. The increase reportedly reflects higher RevPAR and increased ancillary fees related to its co-branded credit card program. The increase was partially offset by the absence of $11 million of fees from a global franchisee conference held in the third quarter of 2013, which were fully offset in expenses.
Domestic RevPAR increased 8.4 percent, partially offset by a 3.5-percent decline in international RevPAR, resulting in a 4.6-percent increase in total system-wide RevPAR compared with the third quarter of 2013. International RevPAR declined due to growth in lower RevPAR countries and unfavorable currency effects.
As of September 30, 2014, Choice's hotel system consisted of approximately 7,590 properties and 655,300 rooms, a 2.7-percent room increase compared with the third quarter of 2013. The development pipeline included over 960 hotels and over 116,000 rooms, of which 57 percent were international and 66 percent were new construction.
Meanwhile, REIT Pebblebrook Hotel Trust reported third-quarter gains in room revenue and occupancy. Its net income was $23.7 million, compared with $11.3 million at the same time a year ago.
RevPAR rose 11.4 percent on an 8.5 percent increase in room rates and a 2.6 percent rise in occupancy.
"Our hotels benefited from accelerating growth in business and leisure transient travel demand, as well as healthy growth in group demand," said CEO Jon Bortz. "In addition, we continue to experience significant increases in inbound international travel."
The company now forecasts full-year RevPAR growth of as much as 8.75 percent.