CHH - Earnings call transcript Q1 2018 | Choice Hotels International, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Good morning, and welcome to the Choice Hotels International First Quarter 2018 Earnings Conference Call. [Operator Instructions] As a reminder, today’s call is being recorded.

During the course of the conference call, certain predictive or forward-looking statements will be used to assist you with understanding of the company and its results. Actual results may differ materially from these indicated in forward-looking statements, and you should consult the company’s Form 10-K for the year-ended December 31, 2017, and the company’s other SEC filings for information about important risk factors affecting the company that you should consider. as publicly date, subsequent update circumstances. speak no we events statements to obligation them forward-looking of and today’s undertake or These or reflect

Inc. can our first quarter financial earnings press our the You is as XXXX reconciliation posted which to on President under Please remarks our referred at Choice like to now the I said, would of in sir. Investor non-GAAP of part choicehotels.com ahead, Officer release, Pat the find go Relations and Pacious, being Hotels Executive section. website International, With measures that of Chief introduce

Pat Pacious

Good welcome Quarter you. Choice XXXX Hotels’ Thank First morning, and Call. Earnings Conference to

morning Dom me our Chief is this Financial Officer. Joining Dragisich,

upon pleased quarter owners. Lodging our first performance. very our our fundamentals results, remained are strong expectations continued with hotel robust to for our to perform and XXXX exceeded We build brand which and continued

shareholders. capital As continue and a result, we return grow, invest business our in to to

end For X.X%, the Suites guidance domestic our the our earnings to impressively RevPAR increased and in and first of the the addition quarter, including brand portfolio. The and of X.X% units rooms of system grew our and our respectively, year-over-year. number WoodSpring top exceeded

into global additional and of alliance Europe This and creation expand hotel footprint Hotels’ our Spain. establishes April, markets in in our franchisor into We continue Spain leading America. across Choice operator as the the strategic Latin development a for the hotel announced and which increase and for as alliance based footprint to of a countries other framework opportunities new presence we new we currently international In markets in the well operate. with Sercotel, extension

pace first in have drive continued our to to total. is added members from million basis increasing over the of revenue contribution Helping our QX to Choice delivered Privileges increasing and We XXXX. new XX X.X points of enrollment. in grow, revenue million proprietary quarter XXX proprietary hotels Our the now

mobile be owners, best XXXX. of been booking people Choice strong Forbes are strong employees, midsize great metrics very and XXth the Annual a by would we success week, revenue this pleased to XX% have the named number up and operators possible from area are of corporate to our this continue at vendors employers without one of directly which app of in this to example Hotels None we talented our A quarter show and with We first XX% the culture up grow very America’s of app, Choice continued us. recently Visits magazine. the nearly quarter. Convention. and is to growth X,XXX hosted Last Hotels is our

and sharing owners holding much addition spent education hotel brand a and of large sessions learning excitement operators. show, was palpable. to from In The numerous strategies, these trade the to we listening hosting week and our

Our family brands. we owners grow energized by are continue of how to and evolve our

extended-stay, example, QX. the lot the highlighted growth industry RevPAR hotel For brand. extended-stay mid-scale, brand, the There outpaced our we finally, brand Hotels renaissance. more the XX top strengthened new its into expanding upscale another that brand’s we markets. and brand image Comfort Cambria unveiled, we by in WoodSpring excitement of nation’s in economy Suites the And the RevPAR in a fastest-growing presence in was In milestone our acquisition have for of

franchisee our of brand including supported focus tax on and reform, profitability, strategy strength family. year the value is proposition the and growth our of ahead continued working, economic by the Our favorable the our is for continued optimism well-segmented environment

rate segment overall the we X a about just for closed RevPAR continues exceed update. industry. on in the I the Given months WoodSpring February, growth that acquisition substantive you wanted extended-stay to since it’s give The to

in the segment prior For extended-stay year. the segment, the WoodSpring the RevPAR of to compared the according quarter outpaced with overall the for first STR. increase X.X% XXXX of up first quarter, same a RevPAR to was period XX.X%

In mid-scale WoodSpring I’m with Suites, quarter also of quarter achieved is the WoodSpring outpace room report the unit RevPAR history. that WoodSpring level pleased experienced place Therefore, and brand’s has XXX our we of record-setting of the to count for prototype in brand, took the to XX quarterly and a development. of this first franchise including year. other and XX rooms, brands, We we XX.X% year our highest franchise this of Suites agreements, acquisition, In accelerate combined in MainStay awarded Suburban. the for quarter. new growth of quarter, growth existing the extended-stay same our The extended-stay awarded enable prototypes MainStay And than prior and period contracts after significant brands. the contracts representing the will WoodSpring XX growth growth. on many addition, larger first XX WoodSpring’s the sales in rooms these of largest MainStay franchisee. our compared closed to saw Suburban, XX

them Denver, return Dallas Choice Choice’s have that with world-class performance Suites the me the in hotels institutional had conference on brand brand’s our and to of the their lot have WoodSpring recently, XXX to part shared WoodSpring the for last team, grow. which I Plus, There, of technology at family, the them platform speak expressed XX In development combination with capital’s Atlanta around investment. strengthen their commitment and to owners commitment I owners the franchise WoodSpring of month. the and and chance acquisition, to first Seattle, late the met to channels country, with help we’ve to will their Choice increasing in shared across I’ve their most distribution being includes enthusiasm the among success owners extended-stay the WoodSpring others. segment. owners visiting and pipeline, days. a addition in accomplished listened And our

of goals the for Looking ahead, we future a brand’s set number growth.

new total of in place breaks WoodSpring more a including ground XXXX, that properties. took and in expect openings XX X We XX January, than on

surpass XXX hotels with the construction in year, targets help this on started ago, the weeks WoodSpring these of first Accomplishing openings accelerating Oregon. X milestone WoodSpring open into XXXX. Just Suites will

achievements Turning to this other quarter.

its brand in X.X% continued increasing growth, and The segment the Our the proven the to domestic the X.X% X% of for year. segment overall versus prior growth a Inn impressive leadership unit knowledge quarter mid-scale first its count over compared RevPAR and posting Quality domestic by continues.

the pipeline for to both Quality Additionally, compared nearly our and brands grew Sleep by Inn prior XX% year. Inn the

represents upgraded to perceive with the upper and and them owners, to with and on one signage new renovations, properties Turning Suites is mid-scale $X.X and Suites a by Inn the now our we Together guests lobbies property multiyear our properties as Comfort our their to will guestrooms. renovations Comfort a billion have across The our digital new these way across research. it X,XXX process. the of This segment. Comfort transformation of can including and modern invested family, continues completes in use hotel for States its the according completed Comfort Guests their expect the Only The brand introduced Last consumer Comfort Comfort locations, the its Inn, end brand all important the we week, a to updated XXXX. United new end brand after building Comfort channels. logo have renovations can already an unifying by shift across logo brand XXXX. image of new our the owners.

brand. improvement hotels will results these We RevPAR are the continued result the that generated in optimistic refreshed Comfort in by

brand Comfort in across hotels and XXX has to attract the the to developers are which Comfort one build in largest XX% history, new with properties, invest and continue now construction. The nearly owners over its country. We of pipelines of

the RevPAR the all made rooms its segment, Hotels Hotels investing celebrated paying the quickly. history, with over also in Orleans the largest Lastly, its upscale the Nashville of in was across it of with feature in index. hotel in pipeline Cambria, I’d we XX,XXX the nearly ramp the Cambria and full which opened XXX% corporate we XXXX. X Cambria X% year-over-year, of upscale first XX Last largest each last hotels, capital the this, opened recyclable markets. ADR January up most great and is open brand’s the October in are music the achieved in openings have is very year, markets, of the continued which design Cambria the of Cambria openings the growth. details major month, quarter, example which RevPAR year, debut we that of pipeline like locations. The property. momentum we hotels ramped in tailored single is March, in XXX-room Hotel to brand’s has quarter RevPAR globe. property’s In In capital a brand Downtown, Cambria nearly of XX with continued a it has newly expect top where highlight $XXX off. fifth in in world New Cambria expected million a or year, into our The first the had we U.S. to

Hotel bar the Fashion Center Downtown opened only hotel the property at the opened will Phoenix near Broad restaurant Chandler, end the Center, the Hotel and Cambria also heart on feature in Cambria is We Philadelphia of in The of the March. located Philly, downtown this and XXX-room its City doors Street. rooftop and

tax shows this us for that Overall, combined growth reform Our a the of strategy optimism quarter continued gives remainder our is XXXX. labor market strong with working.

indicates, record is of consumer solid As a be continues see continue to consumer last jobs we to high. at report X.X%, week’s and spending unemployment low confidence

lending environment. still to continue franchisees and a developers Our it’s reinforce strong that

beginning appreciate to tax and and out understand developers for Choice’s Our brands. newbuilds better both is the reform. are opportunities industry-wide them And This of people driving owners to seek implications well-segmented conversions.

a portfolio brands our the of this the Dom? and is specifics like acquiring is over will runway Hotels continuing reinforces to All financial that positioned more Dom to By remainder brand, Comfort our transforming well importantly, share brand, cycle XXXX. getting CFO, summary, for Choice has turn WoodSpring still mid-scale, Hotels well-segmented more now and, in lead the lodging it and of to I stronger Cambria Choice of the for our In growing. brand growth. of Dragisich, advancing who successful results.

Dom Dragisich

Thanks, everyone. morning, Pat, and good

are performance our will year, We to great optimistic strong are we continue. start off that this a and

and common and metrics enable per continued financial generation performance investment will expectations shareholders. allowed not our stock strength million of quarter, to repurchase and share limited our capital During RevPAR. flows our in us adjusted we and cash our the of of including, to, $XX to the first The operating exceeded and our but earnings for EBITDA, return continued adjusted key operational in significant business

talk high and performance the we end let’s $X.XX This of the share guidance of per prior outlook earnings the and exceeded midpoint diluted more per results XX% earnings over increase diluted a share. reported share share per per $X.XX, by adjusted first adjusted the about guidance our $X.XX in by detail. of morning, This our Now quarter year.

onetime below-the-line both lower was during effective a outperformance tax Our partially the by by quarter. and items driven operations franchising our offset income rate, core

quarter first year. increase same of by period period was growth Our a of the the over prior for adjusted financial the quarter of XX% year $XX.X the prior and revenue XX% performance highlighted EBITDA million, over

Our tax benefits. forecast tax for income was approximately quarter effective of onetime primarily compared to lower discrete rate initial to due rate XX%. This our the XX% was

recurring We continue quarter year to to of XX%. forecast remainder the and for the our the tax rate second be

Our results. rate quarter first lower to is slightly actual XX% full be expected year at tax due to

Our incremental franchisee driving to revenues is commitment hotels. to profitability

As first of from to quarter million. period year increased the the hotel franchising result, a XX% approximately our same $XX.X revenues prior

we key revenue which fees reflect our performance royalty $XX.X in growth Domestic the royalty optimistic continue. by fees, levers, continued franchising increased our royalty record XX% X hotel growth all million. will domestic and Our that this of runoff was to are highlighted also

and the in of provided system further year. compared we quarter. domestic quarter WoodSpring period the system year excluding royalty RevPAR of percentage domestic February, the end royalty over an to and domestic the incremental effective X.X of unit the impacts prior rate system XXXX domestic domestic basis prior first growth of XX each points the X improved the basis X.X% points The rate increased the domestic addition the quarter to effective of adding growth, WoodSpring, units to and first XX top to lever, points basis Specifically, points in increased outlook RevPAR increase in exceeded same

quarter, the more reported in lever, of RevPAR RevPAR daily by full detail to acquisition forma revenue was the both about domestic was also increased quarter a growth On compared and of our as the first increases rates domestic the Now prior the X.X% performance. which rates WoodSpring pro basis, increased year. in we’ll including share our and by overall same This driven occupancy with industry, average line the STR. X.X%, for

the and extended-stay gains are The on economy WoodSpring we continues segment which exceptionally we growth range are are RevPAR we ends Suites our mentioned, WoodSpring, the Pat particularly As and leading first to outlook, of perform top with and RevPAR impressed basis full by of both year excited points domestic bottom performance X.X%. is well, of current pack. X.X% posted results WoodSpring, of XX.X%. XX the excluding increasing our RevPAR at to Based the quarter that trends, our to impact

excluding prior We the expect impact year. RevPAR, and WoodSpring, the the X% second between quarter increase to domestic over of same period X% of

The in exceptionally strong room the compared experienced continues growth, an new quarter. prior increase to accelerate, the nearly XX% second franchise revenue lever, domestic highlighted and by growth unit number system year. a hotel quarter the first openings Domestic to in of

respectively. units grew acquisition, in WoodSpring As a X.X% and this, our result domestic of and our rooms X.X% by

prior achieved growth of in represents year. of the we XXXX. WoodSpring, over of quarter fourth from acquisition the X.X% X.X% same the growth the the acceleration an reported This unit Excluding period

our results. strong on addition, again In profitability franchisee development focus fueled

quarter XXXX, awarded first domestic of franchise to the new During contracts, XX% we increase of represent of first rooms, the XXX XXXX. XX% new a agreements XX,XXX increase of compared first new an XXXX. quarter the domestic from These quarter franchise over

same increase for the particularly nearly which the in first quarter of year. domestic period prior with the We compared franchise pleased construction agreements, are XXXX the XX% of new increased to

upscale growth of already exceptional discussed WoodSpring. brands and highlighted success. the Pat our WoodSpring’s rooms is success Our new construction by development and

a same our Cambria increase the the agreements We brands, upscale year. Ascend XX% of executed also achieved in Collection, for over prior Hotel the period and

compared other nearly increase a XX% brands, experience prior to of quarter the in Inn Quality year. Additionally, including our we agreements in first awarded demand same for to robust period the continue

Our our growth. our year system should March fuel overall to XX,XXX has prior remained at franchise domestic pipeline to hotels, XX% representing and robust, robust Industry favorable, pipeline the increasing XXXX, over XX, fundamentals XXX rooms. over domestic continue remain

expect guidance unit rooms such, expect and X% WoodSpring, we and As acquisition increase to growth range to our domestic between the domestic of and and we Including are X.X% maintaining it X.X%. respectively. X%, units

both XXXX. also We in accelerate room and unit to expect growth

final our and want revenue royalty be third rate is pricing continues I which the franchise The to growth, driven agreements. our lever by to discuss of

rate guidance full compared XX rates our expect basis by basis domestic our expected. the the to year year. slightly royalty we WoodSpring, our This Excluding prior in increasing effective expanded was higher quarter than points growth top ends by XX of and Therefore, first between of the basis growth X point X range the to guidance points at excluding and bottom our impact now and effective royalty WoodSpring. are

royalty point, Although on not higher effective are at than brand WoodSpring guidance we including rates impact overall portfolio. this the this our WoodSpring’s commands rate royalty

period. further first on in year X.XX%. our a for WoodSpring’s In points to forma rates first effective from pro X.XX% domestic the WoodSpring included our rate full When basis fact, the prior quarter royalty XX the quarter, results are effective basis increased royalty over increased

resulted success performance in revenue in of growth our critical franchisees delivery as So key see, The to can providing focus of first you resulted impressive factors levers. these business franchising has X ongoing top our line improve resources our to growth. on quarter

we SG&A costs adjusted hotel In our to from franchising prior XX% quarter. EBITDA year a as continue first prudently increased addition, and, manage the result,

in net to the utilizing the our forecast Finally, adjusted provided recognition outlook adjusted standard in I’d to the of of include comment share acquisition. impact release EBITDA, outlook February, earnings the on for presented of XXXX. the WoodSpring were adjusted our per and like revenue and we guidance income prepared the section remainder our new Similar

the increasing our are and hotel adjusted $XXX adjusted $XXX expect for million costs onetime However, million quarter and as between per EBITDA activities. net and million earnings range between by forecast. deficits integration outlook or share range results of we remainder to We now adjusted both year, our our generated well of and impact on reservation impact EBITDA and to and the marketing franchising the of the our the outlook first EBITDA Based $XXX the as acquisition-related $XXX surpluses excludes million. adjusted and

our diluted $X.XX for we are increasing to and per addition, share share. per adjusted In range $X.XX earnings between guidance

EBITDA franchising operations are adjusted reductions per for to very and earnings happy summary, be with be And second I our the share. results you quarter any for net are are between share we $X questions that of financial $X royalty we Pat first our million. continue. we in pleased diluted nonhotel expect answer and to and million the key $X our expect development time, will franchise and At optimistic our this strong quarter momentum to range and $X.XX have. guidance overall We may would levers, maintaining our from to In per performance

Operator

the And go Instructions] ahead. first questioner Farley Please Robin be UBS. [Operator will with today

Raffi Bhardwaj

on This Raffi for Robin. is

XXXX the So some it QX guidance optimism raised of you raise? your looks you’re about the underlies peak. than the RevPAR you what that Can seeing like slightly talk more for

Pat Pacious

Yes.

what at eclipse the lot first onetime small feeling and And both owners I primary were on base. And some we looking those little other And and and the better. within also energy are impact consumer of when events be hurricane are the our of at of of appear looking to mean things that opportunity looking prices, that some the of bit travel front. that’s rate that travelers, half in. the which consumer look XXXX, out middle-class of driver economists at consumer unemployment reform a with that front. type quarter think is for been we’ve staying both talking getting headed in who’s There a expect the of for more sort bounds. is on bulk we’re tax the optimistic that particularly kind reoccur, And really we to sort normal demand, forecasters, that for optimistic going and hotels, the see of we in is impacts we’re where but our you came stays of occurred – back we the at to consumer the business in direction sort the solar can’t in of the

think, about XXXX. second really, the us those X half So a confidence all develop of the help factors into little more I or next quarters

Raffi Bhardwaj

All really like question. just right. a WoodSpring had quarter. last strong And Looks

see that you growth? be royalty think you to XXXX, a into WoodSpring to RevPAR tailwind do rate XXXX, unit expect for do And normalize? when Looking would continuing

Dom Dragisich

to rate. overall too the to Well royalty RevPAR I regards effectively is the think a with portfolio. be tell expected rate effective early accretive to and little it’s to royalty Obviously,

where above see royalty mark. can rate You effective the X% is today, the

So is, portfolio given of a where be tailwind the royalty our rest to the overall to rate. do we that expect effective

I we expect XX well. as perspective, the tailwind that strong think ground a call, Pat from a expect the the to year. mentioned this on breaks in it remarks, units be prepared we

the So expect of XXX-room and to here sit our it’s prototype. especially then importantly, little fact the a that think to we rooms an as do accelerator overall and tell. that expect to And say I too XX.X% continue, a perspective, to RevPAR of RevPAR from units, see growth, early more our given we

We’re forecast RevPAR the year. over and months the we’ll of in that the guidance around several next going as arms later to get our part issuing be

Pat Pacious

excitement of of certainly also it’s event. be Choice lot And creating WoodSpring is trajectory week. that lot also a our front, beneficiary top now And And the of see on interest about and brought enthusiasm really the world-class just at WoodSpring sort was they on advisory to particularly franchisee of last acquisition, the from the brand. is a that. increasing. And this say brand brand, Hotels we’re the platform, I we going existing that think, I’ll brand, around post – from that there owners council distribution more a And, in convention sitting we the to in were development the

Raffi Bhardwaj

Thanks. great. right, All

Operator

our Bank today will be Please And Shaun questioner of with Kelley America. next ahead. go

Unidentified Analyst

[ph] on for Daryush Kelley. is This Shaun

into at commentary should So net your How the the ex on about unit QX off well directionally WoodSpring’s? year and the as as takes are unit think speaking cadence positive. annual QX? of half of the development and from balance we for growth we of ex of what WoodSpring’s was growth head guidance, in XXXX the that the as started in puts back again year some pretty middle And the

Pat Pacious

Yes.

quarter in development I we’re think to first perspective. the a a off good really start from so

I the have. We’re sort starting sticking selling. lot get expectations but mention of unit growth it’s hotels the we a an We actual brands current X.X that to that contract like kind hotel. of open look from new brands the taking the of are we executed that with at more to are construction, are those When years –

that it direction bring for age the lever us So positive new hotels real is – but when in the that is open. construction right longer because in to of product for going optimism and brand you new it moving a the keeps those to takes

to increase are we there lot in those a take it a or little is but bit construction, an domestic you little – seeing bit contracts, for So patience the of new the thing as news it’s wait things the longer while good open. to have downside a

Quality Inn For brands, we about get those the to we’re in conversion much particular, more significant growth, and a the again hotels and pace. into tend our system rapid in talked brand conversion seeing,

Dom Dragisich

talked previous Daryush [ph], our calls. about a we lot on this

for to X.X% you X.X%. the about If QX, WoodSpring so. X.X% we full guided around that ex right where We year landed in or are think we

expect throughout we the remainder from to maintain the So first quarter that of year. run the rate

about the Pat in that acceleration of talked alluded expect the some also items beyond, portfolio the to. that fact new entire We future we construction XXXX the of an and given

that’s And always Comfort so That’s large products XXXX through growth, some in transformation pipeline. ramp units the a and and we the coming rooms of have of terms expected in frankly. other

a further think, I frankly, talk serve could about break ground catalyst. we WoodSpring, that you when as only the saw

Pat Pacious

on less one XX brand is than that for construction average months. the additional time And WoodSpring, point

in construction, a of brand, brands. our So new a is much window actually that time than tighter while is other some it opens

Unidentified Analyst

And just super that’s of helpful color. follow-up No, sort on that.

brands What taking than ground talked seeing, with on expected. particularly others being a you with – side – from about in the bit a construction some of duration construction of and the on particularly are market, take – Marriott the some some labor that piece? guys Some bit may a longer longer tight the

Pat Pacious

Yes.

It’s had think labor, all impacts you funny, case. with the that developing Houston, and the in think a a tougher developers they’d I who would construction have it’s market-by-market. conversation time Hurricane wasn’t some are Harvey I and finding with that

market-by-market. it’s would entitlement a spotty I construction. So time really do the frame, at new to Yes, of you that too say look particularly when it process, for has lot the with

that So frame those are things new extending for the are time the construction.

Unidentified Analyst

That’s helpful. Thanks. And quarterly the purchase largest then Dom, maybe repurchased for a you of million is on $XX the in which number buybacks, you in guys quarter, years.

should your about to how to the forward, approach Moving and think we markets? capital buybacks tap willingness

Dom Dragisich

right. Sure the we think think way that we have, I thing, about always so

opportunistically invest first internal have company. always continue shareholders. We’re going in we other against Certainly We we we’re foremost. the past, capital first initiatives to capital, going that But we and levers to at for going have investments. in deployment of our But in want that one to we’re about do look and return foremost as million to continue look to our buybacks excess plan on is internal Cambria. that a talk $XXX capital and the always about to take have deployed back to talked to the if

Unidentified Analyst

Great.

quick a as net reminder, target Just what’s ratio? your leverage

Dom Dragisich

X. to X

Unidentified Analyst

a lot Thanks guys. Great.

Dom Dragisich

you. Thank

Pat Pacious

Thanks.

Operator

be will Anthony next our And today questioner with Barclays. Instructions] Powell [Operator

Anthony Powell

Hi, good everyone. morning

that? XX,XXX XX,XXX they key. How and your new cost compare a per of is to WoodSpring that peers does introduced saying their prototypes again extended-stay between One that for brand

Pat Pacious

that. WoodSpring than is lower

talking on about we’re XX,XXX per we key. to owners think talked I average, when

Anthony Powell

in Got And that good any demand? it. Was or hurricane-induced demand growth onetime obviously, the WoodSpring, quarter. aberrational of RevPAR or kind any of

Dom Dragisich

No indication a it that was phenomenon. onetime

obviously, I segment we And, that we model, WoodSpring’s strong. think believe the very is extended-stay overall business economy with outpaced.

Anthony Powell

me. and on The revenue year-over-year. you increased what’s one us just And SG&A going both know more let Could for Okay. nonfranchising, there?

Dom Dragisich

The nonfranchising SG&A?

Anthony Powell

and revenue over SG&A year. both were Nonfranchising year up

any can you or vacation on any us there, that would rental SkyTouch if or things like activities great. be of your update So

Dom Dragisich

the is WoodSpring, you SG&A, when et with by overall those associated cetera. think think driven onetime about some of costs I obviously that

units. a so on I of coming particular we’ve on improvement the platform, has cycle particular think, terms the nonfranchising house dramatic seen has right We support. side requires of pretty believe, pretty do I we’re XXX, see over there some and in now for customers, customers business the in the almost the those X or that for is to a that of top improvement at to on to improvement. anticipate line. X sales the, some negative dramatic that the call burn Obviously, terms so line the third-party $X.X continuing be of rate year, midpoint it, in X negative which million Quarter tends of little that But are still anticipate against some because to some initiatives. capital midpoint with just the deploy in beginning we coming you range. in top new heavier those do of of the SkyTouch

Anthony Powell

that that with I what’s I a – the the is do plan plan the long-term, – you Okay. is are Or have still but And of, is of cards? know guess, you kind update on, SkyTouch? in there? there an new idea selling originally, it

Pat Pacious

you on XX,XXX hotels, think that for recurring nearly around a term. over fee a outside early about is in X,XXX rooms on about that it, of Choice the hotels platform. subsidiary. is sort It described have Dom that so mean on platform the Yes. system it currently longer subscription pay Software-as-a-Service I party About provide There franchised that nice are business, revenue. the about like fees are platform. you that a as of of in marketing $X is mentioned, as now are XXX and way. X,XXX Dom we’re it hotels to little as that There We third this a SkyTouch and you million on Choice

Hotels. subsidiary it we’re of as Choice a So current pleased pretty with

Anthony Powell

you. Thank Great.

Pat Pacious

Thank you.

Operator

any to conclude will conference our back session. the I over to turn this question-and-answer And like remarks. Pacious closing would Pat for

Pat Pacious

joining day. Great. this morning, a and us Thank for have you all great

Operator

you the attending presentation, conference has for and may now lines. concluded. now And disconnect today’s your Thank you

Choice Hotels International (CHH) 11 May 182018 Q1 Earnings call transcript