Choice Hotels Q4 Adjusted Profit Rises

Choice Hotels International, Inc has reported the following highlights for the fourth quarter and full year 2004:

• Diluted earnings per share for full year 2004 were US$2.15 compared to US$1.96 for 2003; Diluted earnings per share for fourth quarter 2004 were US$0.60 compared to US$0.57 for fourth quarter 2003;
• Adjusted diluted earnings per share for full year 2004 were US$2.16, up 16 per cent from US$1.87 for the same period in 2003, on a non-GAAP basis, excluding specified items;
• Royalty revenues up 13 per cent and 11 per cent for fourth quarter and full year 2004, respectively, total revenues up 12 per cent and 11 per cent for fourth quarter and full year, respectively;
• Domestic unit growth of 5.4 per cent;
• Domestic system-wide revenue per available room increased 7.9 per cent for fourth quarter 2004 and 5.1 per cent for full year 2004 compared to prior year results;
• Year-to-date new domestic hotel franchise contracts up 17 per cent to a record 552;
• Domestic hotels under development increased in 2004 by more than 14 per cent to 460 hotels representing 35,652 rooms at year end 2004; worldwide hotels under development grew 16 per cent to 569 hotels at year end 2004, representing 45,167 rooms;
• Company returned more than US$175 million of cash to shareholders in 2004 through a combination of treasury share repurchases and dividends;
• Company announces 2005 full year guidance of US$2.38 to US$2.42 diluted earnings per share.

"Choice Hotels enjoyed yet another record-setting year in 2004 as we added more than 15,000 rooms to our domestic system and achieved a significant milestone with more than 400,000 rooms open worldwide," said Charles A Ledsinger, Jr, president and chief executive officer. "We had a second consecutive record development year, with more than 550 contracts for new franchises executed, which positions us well for unit growth in 2005 and beyond."