choice hotels intl inc (CHH) Key Developments
Choice Hotels International Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Earnings Guidance for the Third Quarter and Year 2015
Jul 29 15
Choice Hotels International Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported total revenues of $232,156,000 against $197,664,000 a year ago. Operating income was $62,917,000 against $60,153,000 a year ago. Income from continuing operations before income taxes was $52,879,000 against $50,234,000 a year ago. Income from continuing operations, net of income taxes was $35,813,000 or $0.62 diluted per share against $35,279,000 or $0.60 diluted per share a year ago. Net income was $35,813,000 or $0.62 diluted per share against $35,400,000 or $0.60 diluted per share a year ago. EBITDA was $65,912,000 against $62,485,000 a year ago.
For the six months, the company reported total revenues of $407,401,000 against $357,400,000 a year ago. Operating income was $104,321,000 against $101,325,000 a year ago. Income from continuing operations before income taxes was $83,913,000 against $81,762,000 a year ago. Income from continuing operations, net of income taxes was $57,407,000 or $0.99 diluted per share against $56,748,000 or $0.96 diluted per share a year ago. Net income was $57,407,000 or $0.99 diluted per share against $58,510,000 or $0.99 diluted per share a year ago. Net cash provided by operating activities was $37,930,000 against $65,832,000 a year ago. Investment in property and equipment was $6,283,000 against $12,216,000 a year ago. EBITDA was $110,006,000 against $105,935,000 a year ago.
The company's third quarter 2015 diluted EPS is expected to be $0.72.
The company expects full-year 2015 diluted EPS to range between $2.18 and $2.22 and full year 2015 EBITDA to range between $237 million and $241 million.
Choice Hotels International Inc. Announces Expansion in Orlando
Jul 27 15
Choice Hotels International Inc. announced that it has signed an agreement with Nevada Coal and Grain LLC led by Matthew Gillio and Don Fuller, to develop a new Cambria hotel & suites in Orlando, FL. The 140 room Cambria property will be located at the intersection of International Dr. and Central Florida Parkway and is expected to open in 2017. Designed as a business travel and leisure brand, all Cambria hotels are new-construction and feature a larger lobby to give guests a more social atmosphere; oversized rooms that are larger than standard hotel rooms and include ample living, working and sleeping spaces; and the latest technology that allows guests to stay connected while they travel. Like all Cambria hotels & suites, the International Drive Orlando property will feature other fine amenities such as a contemporary bistro, Social Circle, serving a menu of local specialties created by Chef Michael DeMaria; liquor, wine, beer and freshly prepared grab-and-go gourmet salads and sandwiches; and a barista bar. This property will also boast over 2,000 square feet of meeting and reception space for events, complimented by onsite catering and excellent service. Guests will also experience a modern fitness facility and a comfortable pool area for relaxation and enjoyment.
Choice Hotels International, Inc. Enters into New Credit Agreement
Jul 21 15
On July 21, 2015, Choice Hotels International Inc. entered into the new credit agreement. The new credit agreement provides for a $450 million unsecured revolving credit facility with a final maturity date of July 21, 2020, subject to optional one-year extensions that can be requested by the company prior to each of the first, second and third anniversaries of the closing date of the new revolver. The effectiveness of any such extensions are subject to the consent of the lenders under the new credit agreement and certain customary conditions. Up to $35 million of borrowings under the new revolver may be used for alternative currency loans and up to $15 million of borrowings under the new revolver may be used for swingline loans. the new revolver is unconditionally guaranteed, jointly and severally, by certain of the company's domestic subsidiaries, which are considered restricted subsidiaries under the new credit agreement. The subsidiary guarantors currently include all subsidiaries that guarantee the obligations under the company's indenture governing the terms of its 5.75% senior notes due 2022 and its 5.70% senior notes due 2020. If the company achieves and maintains an investment grade rating, as defined in the new credit agreement, then the subsidiary guarantees will at the election of the company be released and the new revolver will not be guaranteed. The company may at any time prior to the final maturity date increase the amount of the new revolver by up to an additional $150 million to the extent that any one or more lenders commit to being a lender for the additional amount and certain other customary conditions are met. The company currently may elect to have borrowings under the new revolver bear interest at a rate equal to LIBOR plus a margin ranging from 135 to 175 basis points based on the company's total leverage ratio or a base rate plus a margin ranging from 35 to 75 basis points based on the company's total leverage ratio. If the company achieves an investment grade rating, then the company may elect to use a different, ratings-based, pricing grid set out in the new credit agreement. The new credit agreement requires the company to pay a fee on the undrawn portion of the new revolver, calculated on the basis of the average daily unused amount of the new revolver multiplied by 0.20% per annum. If the company achieves an investment grade rating and it elects to use the ratings-based pricing grid set out in the new credit agreement, then the company will be required to pay a fee on the total commitments under the new revolver, calculated on the basis of the actual daily amount of the commitments under the new revolver (regardless of usage) times a percentage per annum ranging from 0.10% to 0.25% (depending on the company's senior unsecured long-term debt rating). The new credit agreement requires that the company and its restricted subsidiaries comply with various covenants, including with respect to restrictions on liens, incurring indebtedness, making investments and effecting mergers and/or asset sales. With respect to dividends, the company may not declare or make any payment if there is an existing event of default or if the payment would create an event of default. in addition, if the company's total leverage ratio exceeds 4.0 to 1.0, the company is generally restricted from paying aggregate dividends in excess of $50 million in any calendar year. The new credit agreement imposes financial maintenance covenants requiring the company to maintain a total leverage ratio of not more than 4.5 to 1.0 and a consolidated fixed charge coverage ratio of at least 2.5 to 1.0. If the company achieves and maintains an investment grade rating, then the company will not need to comply with the consolidated fixed charge coverage ratio covenant. the new credit agreement includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of the company under the new credit agreement to be immediately due and payable. The proceeds of the new revolver are expected to be used for general corporate purposes, including working capital, debt repayment, stock repurchases, dividends, investments and other permitted uses set forth in the new credit agreement. Certain of the lenders, as well as certain of their respective affiliates, have performed and may in the future perform for the company and its subsidiaries, various commercial banking, investment banking, lending, underwriting, trust services, financial advisory and other financial services, for which they have received and may in the future receive customary fees and expenses. In connection with the entry into the new credit agreement, on July 21, 2015, the company's $350 million senior secured credit facility, dated as of July 25, 2012, among the company, Deutsche Bank AG New York Branch, as administrative agent, Wells Fargo Bank, National Association, as syndication agent, and a syndication of lenders (the old credit facility), was terminated and replaced by the new credit agreement. The old credit facility consisted of a $200 million revolving credit tranche and a $150 million term loan with an initial maturity date of July 25, 2016.
Choice Hotels Announces Grand Opening of the First Cambria Hotel & Suites in New York City
Jul 15 15
Choice Hotels International Inc. celebrated the grand opening of the new Cambria hotel & suites in New York City's Chelsea neighborhood. Owned by We Care Trading Co. Ltd. and operated by Concord Hospitality, Cambria hotel & suites New York - Chelsea is located at 123 West 28th Street and sits in the middle of the eclectic Flower District, which is brought to life in the hotel's design and decor. The neighborhood inspiration was highlighted in last night's garden party-themed grand opening celebration. Guests were treated to flower-inspired signature cocktails and fresh local fare, took exclusive tours of the property, and mingled with key leaders in the hospitality industry, including Steve Joyce, President and CEO of Choice Hotels, Michael Murphy, SVP of Upscale Brands at Choice Hotels, Mark Laport, CEO of Concord Hospitality, and property owner, Rob Chun. The event was also attended by Andrea Fasano, Choice Hotel's Ultimate People Person, who is currently out on the road representing Choice and creating meaningful, in-person connections all over the United States this summer.
Choice Hotels International Inc. to Report Q2, 2015 Results on Jul 29, 2015
Jul 2 15
Choice Hotels International Inc. announced that they will report Q2, 2015 results at 9:00 AM, US Eastern Standard Time on Jul 29, 2015