ROCKVILLE, Md. — Selection Motels Global, Inc., reported its Q1 2022 effects for the 3 months ended March 31, 2022.
“Development at the file yr we had in 2021, the place we surpassed 2019 RevPAR and profitability ranges, Selection Motels’ confirmed trade type as soon as once more delivered spectacular quarterly effects, and we think this momentum to proceed as we means the summer season recreational shuttle season,” stated Patrick Pacious, president and leader govt officer, Selection Motels. “With customers prioritizing spending on recreational shuttle and regularly taking a look to find the good American outdoor, our accommodations are in the fitting places to seize this rising shuttle call for. We’re assured that our long-term investments, compelling franchisee worth proposition, and robust monetary well being, blended with underlying shopper tendencies that choose recreational shuttle, limited-service accommodations, and longer reside events, will let us force sustainable expansion in 2022 and past.”
Highlights of first quarter 2022 effects come with (observe that RevPAR metrics are in comparison to 2019):
- Home systemwide earnings according to to be had room (RevPAR) expansion larger via 10.4 p.c for Q1 2022, in comparison to the similar length of 2019, and outperformed the full trade via 13 proportion issues. RevPAR expansion was once pushed via an building up in moderate day by day price (ADR) of 9.3 p.c and a 60-basis-point building up in occupancy ranges as opposed to first quarter 2019.
- Home systemwide RevPAR expansion has surpassed 2019 ranges for ten consecutive months via March 31, 2022, a pattern that has persevered in the second one quarter of 2022 with April RevPAR expanding roughly 16 p.c, in comparison to April of 2019. RevPAR for full-year 2022 is predicted to extend between 10 p.c and 13 p.c, in comparison to full-year 2019.
- Packages gained for brand new home franchise agreements larger via 46 p.c in Q1 2022, in comparison to the similar length of 2021.
- The corporate’s home efficient royalty price for first quarter 2022 larger 3 foundation issues over first quarter 2021 to five.05 p.c and is predicted to extend via roughly 5 foundation issues for full-year 2022, in comparison to full-year 2021.
- Overall revenues larger 41 p.c to $257.7 million for first quarter 2022, in comparison to the similar length of 2021. Overall revenues aside from advertising and marketing and reservation gadget charges larger 43 p.c to $131.1 million for first quarter 2022, in comparison to the similar length of 2021.
- Internet source of revenue larger $45.1 million to $67.4 million for first quarter 2022, representing diluted income according to proportion (EPS) of $1.20, a 200 p.c building up over first quarter 2021.
- First quarter adjusted internet source of revenue, aside from sure pieces described in Showcase 7, larger 82 p.c to $57.7 million from first quarter 2021, representing adjusted diluted EPS of $1.03, an 81 p.c building up from first quarter 2021.
- Adjusted income sooner than passion, taxes, depreciation, and amortization (EBITDA) for first quarter 2022 was once $96.6 million, a 53 p.c building up from the similar length of 2021.
- Adjusted EBITDA margin for first quarter 2022 reached 74 p.c, a 470-basis-point building up from the similar length of 2021.
- All over Q1 2022, the corporate returned $28 million to shareholders within the type of money dividends and proportion repurchases.
RevPAR Efficiency Developments
Selection Motels’ home portfolio completed RevPAR index positive factors of 320 foundation issues as opposed to native competition for Q1 2022, in comparison to the similar length of 2019, pushed via each ADR and occupancy index positive factors. The entire Selection Motels’ chain scale segments wherein the corporate competes completed RevPAR index proportion positive factors as opposed to native pageant for Q1 2022, in comparison to the similar length of 2019.
The corporate’s extended-stay portfolio has persistently exceeded 2019 RevPAR ranges since April 2021 and completed home systemwide RevPAR expansion of nineteen.2 p.c in Q1 2022, in comparison to the similar length of 2019. The WoodSpring Suites emblem completed RevPAR expansion of 27.2 p.c in Q1 2022, in comparison to the similar length of 2019, pushed via occupancy ranges of 77 p.c and a 24 p.c building up in ADR.
The corporate’s total midscale portfolio has persistently surpassed 2019 RevPAR ranges since June 2021 and completed home systemwide RevPAR expansion of seven.5 p.c in Q1 2022 in comparison to the similar length of 2019. In Q1 2022, the Convenience circle of relatives emblem’s home systemwide RevPAR expansion outperformed the upper-midscale chain scale via 750 foundation issues, in comparison to the similar length of 2019.
The corporate’s upscale portfolio persevered to reach home systemwide RevPAR proportion positive factors as opposed to its native competition for first quarter 2022, in comparison to the similar length of 2019, with the Cambria Motels emblem posting positive factors of 920 foundation issues for first quarter 2022.
Further main points for the corporate’s first quarter 2022 effects are as follows:
Revenues
First quarter 2022 home royalties totaled $87 million, a 38 p.c building up from the similar length of 2021.
Preliminary franchise and relicensing charges revenues larger 55 p.c to $8.4 million for first quarter 2022, in comparison to the similar length of 2021.
Procurement services and products revenues larger 4 p.c to $11.7 million for first quarter 2022, in comparison to the similar length of 2021.
Construction
The corporate awarded 93 home franchise agreements in first quarter 2022, a 4 p.c building up in comparison to the similar length of 2021. Except the multi-unit transaction for 22 houses as a part of the corporate’s strategic alliance with Penn Nationwide Gaming in 2021, home franchise agreements larger 39 p.c in first quarter 2022, in comparison to the similar length of 2021.
The choice of home franchise agreements awarded for brand new building accommodations greater than doubled in first quarter 2022, in comparison to the similar length of 2021.
Of the full home agreements awarded in first quarter 2022, 88 p.c had been for the corporate’s upscale, midscale and extended-stay manufacturers.
The corporate’s extended-stay portfolio persevered its speedy growth, attaining 478 home accommodations as of March 31, 2022, a 5.3 p.c building up since March 31, 2021, with the home pipeline attaining 350 accommodations waiting for conversion, underneath building or authorized for building. The choice of new home franchise agreements awarded for the corporate’s extended-stay portfolio larger greater than threefold for first quarter 2022, in comparison to the similar length of 2021.
The choice of home franchise agreements awarded for the corporate’s midscale phase larger 45 p.c for Q1 2022, in comparison to the similar length of 2021. In Q1 2022, the Convenience emblem circle of relatives’s home franchise agreements for conversion accommodations larger via 56 p.c in comparison to the similar length of 2021.
For Q1 2022, the Cambria Motels emblem greater than tripled the choice of home franchise agreements awarded, in comparison to the similar length of 2021.
The choice of home accommodations and rooms, as of March 31, 2022, reduced 1.2 p.c and a pair of.8 p.c, respectively, from March 31, 2021. Except the have an effect on from the prior to now introduced departure of 17 AMResorts-branded houses and the go out of 41 underperforming belongings from the portfolio in fourth quarter 2021, the corporate’s home upscale, midscale and extended-stay segments reported a zero.7 p.c building up in devices in comparison to March 31, 2021. For full-year 2022, the choice of home upscale, midscale and extended-stay devices is predicted to develop between 1 p.c and a pair of p.c, in comparison to full-year 2021.
The corporate’s general home pipeline of accommodations waiting for conversion, underneath building, or authorized for building, as of March 31, 2022, reached 864 accommodations, representing just about 78,000 rooms, a three.5 p.c building up in rooms from December 31, 2021. This pipeline does now not come with programs gained or grasp building agreements which decide to long run franchise building.
Stability Sheet and Liquidity
The corporate additional reinforced its liquidity place in first quarter 2022 and continues to take pleasure in its essentially franchise-only trade type, which has traditionally equipped a solid income movement, low capital expenditure necessities and important loose money glide. As of March 31, 2022, the corporate’s general to be had liquidity consisting of money and to be had borrowing capability in the course of the revolving credit score facility larger 37 p.c to $1.13 billion, in comparison to March 31, 2021. The corporate generated money glide from operations of $63.9 million for first quarter 2022, an building up of $63.8 million from the similar length of 2021.
Shareholder Returns
All over the 3 months ended March 31, 2022, the corporate paid money dividends totaling $13.2 million. In response to the present quarterly dividend price of $0.2375 according to not unusual proportion remarkable, the corporate expects to pay dividends of $53 million right through 2022, in comparison to general dividends of $25 million paid in 2021.
All over Q1 F2022, the corporate repurchased $14.8 million of not unusual inventory underneath its inventory repurchase program, in addition to via repurchases from workers in reference to tax withholding and possibility workouts with regards to awards underneath the corporate’s fairness incentive plans. As of March 31, 2022, the corporate had 3.3 million stocks of not unusual inventory ultimate underneath the present proportion repurchase authorization.
Learn the whole Q1 2022 effects right here.
