Global hotel franchisor Choice Hotels International has reported net income of $35.4m for the second quarter of 2014, an increase of 11.28% compared with $31.81m a year ago.
The Maryland-based company noted that total revenues for the quarter increased 4% to $197.64m from $190.93m in the same quarter last year.
Operating income for the quarter grew 10% to $60.15m from last year, and total operating expenses was $137.51m, up 1% from the year-ago quarter.
During the period, franchising revenues increased 8% to $93.83m, and franchising margins improved 270 basis points to 68.8% from a year ago.
New domestic hotel franchise contracts during the second quarter increased 20% to 125.
Royalty fees grew 7% to $78m, while marketing and reservation revenues remained flat at $104m.
Domestic royalty fees grew 7% to $71.2m, while domestic unit growth was 1.8% and room growth was 0.9% over last year.
Choice Hotels International president and CEO Stephen Joyce said: "During the second quarter, momentum in our core lodging business was very strong and we are pleased with our performance, which exceeded our expectations. We achieved continued net domestic unit growth, strong development results and a nearly 8% percent increase in domestic RevPAR."
By the end of June this year the company had disposed of all three of its owned MainStay Suites hotels and the new owners of the hotels had executed new franchise agreements with the company.
Choice Hotels International franchises more than 6,300 hotels under the Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Hotel & Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands.