Choice Hotels International’s second-quarter profit jumped 5.9% as the hotel-chain operator’s revenue increased more than expected.
Corporate travel and overseas demand have helped strengthen the hotel industry. But Choice Hotels–whose strongest presence is in the U.S.–had been lagging as domestic recovery has been slower than abroad.
Domestic revenue per available room increased by 0.3% compared with April’s forecast of a 2% drop and last year’s 16% slump. The average room rate declined 2.2% while occupancy rate rose by 1.3%.
The company–whose brands include Comfort Inn and EconoLodge–posted earnings of $27 million, up from $25.5 million, a year earlier. Revenue grew 4.5% to $149.8 million.
