Choice reported its outlook for 2018.
Full-year 2018 net income is forecast to range between $190 million and $196 million and domestic unit growth for 2018 is expected to range between 7 and 8 percent, according to the group.
Executives on the company’s fourth-quarter and full-year 2017 earnings call said Choice’s acquisition of WoodSpring Suites, combined with the success of MainStay Suites, creates opportunity for the company in the extended-stay segment in 2018 and beyond.
The acquisition of WoodSpring Suites added 239 hotels to the company's portfolio. According to Choice Hotels President and CEO Pat Pacious, with the addition of the WoodSpring Suites brand, Choice nearly tripled its size in extended stay, and now offers more than 350 properties.
WoodSpring recorded 25% unit growth, 21% revenue-per-available-room growth and 48% gross room-revenue growth over the last three years. Pacious said, “WoodSpring is a brand of tomorrow, still in the early growth stage of its brand life cycle, and joins our other new construction-focused brands, including Cambria, Sleep Inn, MainStay and Comfort, all of which have a robust pipeline.”
Choice’s MainStay Suites brand is also driving growth in the extended-stay segment. According to Pacious, the brand had its best year in 2017, doubling the number of executed contracts over the previous year.
According to data published by Hospitality ON as of January 1, 2017, Choice Hotels International had over 6,500 properties on its portfolio, representing a capacity of more than 516,000 rooms.
Already signed up? Already signed up? Already signed up? Already registered? Login here!