Choice Hotels Results

Choice Hotels International Q2 Total Revenues Up 17%

Domestic system-wide revenue per available room increased 6.7 percent in the second quarter of 2015, as occupancy and average daily rates increased 170 basis points and 3.8 percent, respectively from the same period of 2014.

Choice Hotels

Choice Hotels International, Inc. (NYSE: CHH) today reported the following highlights for the second quarter 2015:

  • Revenues for the three months ended June 30, 2015 totaled $232.2 million, an increase of 17 percent from the same period of 2014.
  • Domestic hotel executed franchise agreements totaled 139 for the three months ended June 30, 2015, an increase of 11 percent from the same period of 2014.
  • New domestic hotel franchise agreements executed in the second quarter of 2015 for the Comfort family of brands increased 67 percent over the same period of the prior year with nearly 60 percent of agreements representing new construction hotels.
  • Executed 5 new domestic franchise agreements during the three months ended June 30, 2015 for the Cambria hotels & suites brand expanding to new markets including Philadelphia, PA and Memphis, TN.
  • Domestic relicensing and contract renewal transactions totaled 85 for the three months ended June 30, 2015, an increase of 13 percent from the same period of 2014.
  • The company's new construction domestic pipeline of hotels under construction or approved for development increased 30 percent from June 30, 2014, and the total pipeline increased 22 percent.  The increase in the new construction hotel pipeline was led by the company's Comfort family of brands which increased 44 percent over the same period of the prior year.
  • Franchising revenues for the three months ended June 30, 2015, totaled $98.6 million, an increase of 5 percent from the same period of 2014.
  • Domestic royalty fees for the three months ended June 30, 2015, totaled $75.8 million, an increase of 6 percent from the same period of 2014.
  • Domestic system-wide revenue per available room increased 6.7 percent in the second quarter of 2015, as occupancy and average daily rates increased 170 basis points and 3.8 percent, respectively from the same period of 2014.
  • Domestic units increased 0.3 percent from June 30, 2014.
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA") from franchising activities for the three months ended June 30, 2015, totaled $69.8 million, an increase of 5 percent from the same period of 2014. 
  • Diluted earnings per share ("EPS") from continuing operations for the three months ended June 30, 2015, totaled $0.62, an increase of 3 percent from the same period of 2014.
  • On July 21, 2015, the company completed the refinancing of its existing $350 senior secured credit facility with a new five year, $450 million senior unsecured revolving credit facility.

"We are pleased with our second quarter operating results that were highlighted by strong domestic RevPAR performance and franchise sales results," said Stephen P. Joyce, president and chief executive officer, Choice Hotels. "Once again our RevPAR performance continued to outpace the gains reported by Smith Travel Research in the chain scale segments in which we compete and as reflected in our franchise sales results our programs to accelerate the growth of the Cambria hotels and suites and Comfort brands have been well received by developers and franchisees. We continue to be optimistic that these programs will drive the continued improvement and expansion of these brands."

Discontinued Operations

During 2014, the company entered into and completed a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the sale of these hotels met the definition of a discontinued operation since the operations and cash flows of these components have been eliminated from the on-going operations of the company and the company does not have significant continuing involvement in the operations of the hotels after the transaction. As a result, the company's consolidated statement of income for the three and six months ended June 30, 2014, reflects these three company-owned hotels as discontinued operations.

Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.                  

Outlook

The company's consolidated 2015 outlook reflects the following assumptions:

  • All figures assume no repurchases of common stock under the company's share repurchase program; and
  • The effective tax rate for continuing operations is expected to be approximately 32% for both the third quarter and full-year 2015, respectively.

Franchising

  • EBITDA from franchising activities for full-year 2015 are expected to range between $254 million and $257 million;
  • Net domestic unit growth for 2015 is expected to be approximately 1%;
  • RevPAR is expected to increase approximately 6.5% for the third quarter and range between 6.5% and 7.5% for full-year 2015; and
  • The effective royalty rate is expected to increase 2 basis points for full-year 2015 as compared to full-year 2014.

SkyTouch

  • Net reductions in EBITDA relating to our investment in the SkyTouch division for full-year 2015 are expected to range between $15 million and $20 million.

Consolidated Outlook

The company's third quarter 2015 diluted EPS is expected to be $0.72. The company expects full-year 2015 diluted EPS to range between $2.18 and $2.22 and full year 2015 EBITDA to range between $237 million and $241 million.

About Choice Hotels

Choice Hotels International, Inc.® (NYSE: CHH) is one of the world's largest lodging companies. With more than 6,300 hotels franchised in more than 35 countries and territories, we represent more than 500,000 rooms around the globe. As of June 30, 2015, 613 hotels were in our development pipeline. Our company's Ascend Hotel Collection®, Cambria® hotels & suites, Comfort Inn®, Comfort Suites®, Sleep Inn®, Quality®, Clarion®, MainStay Suites®, Suburban Extended Stay Hotel®, Econo Lodge® and Rodeway Inn® brands provide a spectrum of lodging choices to meet guests' needs. 

Choice Hotels International, Inc.

 

 

Exhibit 1

Consolidated Statements of Income

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

Variance

Variance

2015

2014

$

%

2015

2014

$

%

(In thousands, except per share amounts)

REVENUES:

Royalty fees

$     81,183

$     77,670

$ 3,513

5%

$ 143,614

$ 136,210

$  7,404

5%

Initial franchise and relicensing fees

5,816

4,722

1,094

23%

11,533

8,462

3,071

36%

Procurement services

8,589

8,020

569

7%

13,396

12,798

598

5%

Marketing and reservation 

133,122

103,766

29,356

28%

231,835

193,372

38,463

20%

Other

3,446

3,486

(40)

(1%)

7,023

6,558

465

7%

      Total revenues

232,156

197,664

34,492

17%

407,401

357,400

50,001

14%

OPERATING EXPENSES:

Selling, general and administrative

33,122

31,413

1,709

5%

65,560

58,093

7,467

13%

Depreciation and amortization

2,995

2,332

663

28%

5,685

4,610

1,075

23%

Marketing and reservation

133,122

103,766

29,356

28%

231,835

193,372

38,463

20%

Total operating expenses

169,239

137,511

31,728

23%

303,080

256,075

47,005

18%

Operating income

62,917

60,153

2,764

5%

104,321

101,325

2,996

3%

OTHER INCOME AND EXPENSES, NET:

Interest expense

11,057

10,710

347

3%

21,236

20,881

355

2%

Interest income

(277)

(347)

70

(20%)

(623)

(850)

227

(27%)

Other (gains) and losses

(1,173)

(474)

(699)

147%

(1,641)

(533)

(1,108)

208%

Equity in net loss of affiliates

431

30

401

1337%

1,436

65

1,371

2109%

Total other income and expenses, net

10,038

9,919

119

1%

20,408

19,563

845

4%

Income from continuing operations before income taxes

52,879

50,234

2,645

5%

83,913

81,762

2,151

3%

Income taxes

17,066

14,955

2,111

14%

26,506

25,014

1,492

6%

Income from continuing operations, net of income taxes

35,813

35,279

534

2%

57,407

56,748

659

1%

Income from discontinued operations, net of income taxes

-

121

(121)

(100%)

-

1,762

(1,762)

(100%)

Net income

$     35,813

$     35,400

$    413

1%

$   57,407

$   58,510

$ (1,103)

(2%)

Basic earnings per share

Continuing operations

$         0.62

$         0.61

$   0.01

2%

$       1.00

$       0.97

$    0.03

3%

Discontinued operations

-

-

-

NM

-

0.03

(0.03)

(100%)

$         0.62

$         0.61

$   0.01

2%

$       1.00

$       1.00

$    0.00

0%

Diluted earnings per share

Continuing operations

$         0.62

$         0.60

$   0.02

3%

$       0.99

$       0.96

$    0.03

3%

Discontinued operations

-

-

-

NM

-

0.03

(0.03)

(100%)

$         0.62

$         0.60

$   0.02

3%

$       0.99

$       0.99

$    0.00

0%

 

 

Choice Hotels International, Inc.

Exhibit 2

Consolidated Balance Sheets

(In thousands, except per share amounts)

 June 30, 

 December 31, 

2015

2014

(Unaudited)

ASSETS

Cash and cash equivalents

$    230,650

$         214,879

Accounts receivable, net

118,989

91,681

Other current assets

47,938

44,854

Total current assets

397,577

351,414

Fixed assets and intangibles, net

155,456

152,034

Notes receivable, net of allowances

51,228

40,441

Investments, employee benefit plans, at fair value

18,274

17,539

Other assets

80,058

85,842

Total assets

$    702,593

$         647,270

LIABILITIES AND SHAREHOLDERS' DEFICIT

Accounts payable and accrued expenses

$    128,744

$         120,654

Deferred revenue

70,402

66,382

Current portion of long-term debt

1,124

12,349

Other current liabilities

1,416

713

Total current liabilities

201,686

200,098

Long-term debt

800,035

782,082

Deferred compensation & retirement plan obligations  

24,237

23,987

Other liabilities

62,102

69,904

Total liabilities

1,088,060

1,076,071

Common stock, $0.01 par value

576

573

Additional paid-in-capital

134,144

127,661

Accumulated other comprehensive loss

(7,812)

(6,971)

Treasury stock, at cost

(979,211)

(982,463)

Retained earnings

466,836

432,399

Total shareholders' deficit

(385,467)

(428,801)

Total liabilities and shareholders' deficit

$    702,593

$         647,270

 

 

Choice Hotels International, Inc.

Exhibit 3

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Six Months Ended June 30,

2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$  57,407

$  58,510

Adjustments to reconcile net income to net cash provided 

 by operating activities:

  Depreciation and amortization  

5,685

4,610

  Gain on sale of assets

(1,595)

(2,849)

  Provision for bad debts, net

1,197

1,383

  Non-cash stock compensation and other charges

5,399

4,711

  Non-cash interest and other (income) loss

1,340

719

  Deferred income taxes

(2,095)

(9,273)

  Equity (earnings) losses from unconsolidated joint ventures, net of distributions received

2,781

611

Changes in assets and liabilities:

  Receivables

(28,856)

(39,518)

  Advances to/from marketing and reservation activities, net

3,724

31,522

  Forgivable notes receivable, net

(19,186)

(6,692)

  Accounts payable

16,990

8,316

  Accrued expenses

(6,969)

(5,247)

  Income taxes payable/receivable

2,450

15,198

  Deferred revenue

4,041

6,231

  Other assets

(5,152)

(1,102)

  Other liabilities

769

(1,298)

 NET CASH PROVIDED BY OPERATING ACTIVITIES 

37,930

65,832

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment in property and equipment

(14,554)

(7,314)

Proceeds from sales of assets

6,283

12,216

Contributions to equity method investments

(2,446)

(6,946)

Distributions from equity method investments

270

-

Purchases of investments, employee benefit plans

(1,736)

(1,220)

Proceeds from sales of investments, employee benefit plans

1,087

641

Issuance of mezzanine and other notes receivable

(1,500)

(2,223)

Collections of mezzanine and other notes receivable

3,567

9,743

Other items, net

(261)

(296)

 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 

(9,290)

4,601

CASH FLOWS FROM FINANCING ACTIVITIES:

Net borrowings pursuant to revolving credit facility

13,000

-

Principal payments on long-term debt

(6,169)

(4,112)

Proceeds from the issuance of long-term debt

-

26

Purchase of treasury stock

(6,244)

(4,544)

Dividends paid

(22,940)

(21,957)

Excess tax benefits from stock-based compensation

4,613

1,319

Proceeds from exercise of stock options

5,696

1,547

 NET CASH USED BY FINANCING ACTIVITIES

(12,044)

(27,721)

Net change in cash and cash equivalents

16,596

42,712

Effect of foreign exchange rate changes on cash and cash equivalents

(825)

1,035

Cash and cash equivalents at beginning of period

214,879

167,795

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$230,650

$211,542

 

 

CHOICE HOTELS INTERNATIONAL, INC.

Exhibit 4

SUPPLEMENTAL OPERATING INFORMATION 

DOMESTIC HOTEL SYSTEM

(UNAUDITED)

For the Six Months Ended June 30, 2015

For the Six Months Ended June 30, 2014

Change

Average Daily

Average Daily

Average Daily

Rate

Occupancy

RevPAR

Rate

Occupancy

RevPAR

Rate

Occupancy

RevPAR

Comfort Inn

$            87.35

63.5%

$  55.48

$           83.68

61.3%

$  51.31

4.4%

220

bps

8.1%

Comfort Suites

93.06

68.2%

63.43

89.35

65.7%

58.68

4.2%

250

bps

8.1%

Sleep

79.60

64.0%

50.93

75.94

61.3%

46.57

4.8%

270

bps

9.4%

Quality

73.16

57.5%

42.05

70.37

54.8%

38.57

4.0%

270

bps

9.0%

Clarion

78.25

56.3%

44.07

75.01

53.0%

39.75

4.3%

330

bps

10.9%

Econo Lodge

57.47

52.4%

30.13

55.75

49.7%

27.72

3.1%

270

bps

8.7%

Rodeway

57.22

55.8%

31.90

54.19

53.2%

28.85

5.6%

260

bps

10.6%

MainStay

76.24

68.5%

52.23

73.80

70.6%

52.11

3.3%

(210)

bps

0.2%

Suburban

47.25

76.5%

36.15

44.53

72.6%

32.34

6.1%

390

bps

11.8%

Ascend Hotel Collection

122.78

59.8%

73.45

117.13

59.2%

69.30

4.8%

60

bps

6.0%

Total 

$            78.08

60.4%

$  47.15

$           75.26

58.0%

$  43.63

3.7%

240

bps

8.1%

For the Three Months Ended June 30, 2015

For the Three Months Ended June 30, 2014

Change

Average Daily

Average Daily

Average Daily

Rate

Occupancy

RevPAR

Rate

Occupancy

RevPAR

Rate

Occupancy

RevPAR

Comfort Inn

$            90.92

69.5%

$  63.16

$           87.16

67.6%

$  58.94

4.3%

190

bps

7.2%

Comfort Suites

95.59

71.8%

68.64

91.46

70.4%

64.36

4.5%

140

bps

6.7%

Sleep

82.23

68.3%

56.11

78.40

66.9%

52.42

4.9%

140

bps

7.0%

Quality

75.52

62.0%

46.83

72.61

59.8%

43.38

4.0%

220

bps

8.0%

Clarion

80.54

60.8%

48.95

78.36

57.0%

44.68

2.8%

380

bps

9.6%

Econo Lodge

59.86

56.6%

33.87

58.12

54.9%

31.90

3.0%

170

bps

6.2%

Rodeway

59.92

58.4%

35.01

56.56

56.7%

32.05

5.9%

170

bps

9.2%

MainStay

78.53

70.4%

55.32

76.33

76.3%

58.25

2.9%

(590)

bps

(5.0%)

Suburban

47.96

78.9%

37.86

45.72

75.0%

34.27

4.9%

390

bps

10.5%

Ascend Hotel Collection

129.04

59.2%

76.41

122.07

60.1%

73.32

5.7%

(90)

bps

4.2%

Total 

$            80.89

64.7%

$  52.36

$           77.92

63.0%

$  49.08

3.8%

170

bps

6.7%

For the Quarter Ended

For the Six Months Ended

6/30/2015

6/30/2014

6/30/2015

6/30/2014

System-wide effective royalty rate

4.28%

4.28%

4.29%

4.30%

 

 

CHOICE HOTELS INTERNATIONAL, INC.

Exhibit 5

SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA

(UNAUDITED)

June 30, 2015

June 30, 2014

Variance

Hotels

Rooms

Hotels

Rooms

Hotels

Rooms

%

%

Comfort Inn

1,215

93,904

1,281

99,679

(66)

(5,775)

(5.2%)

(5.8%)

Comfort Suites

575

44,447

590

45,664

(15)

(1,217)

(2.5%)

(2.7%)

Sleep

377

27,207

375

27,159

2

48

0.5%

0.2%

Quality

1,311

105,761

1,251

102,859

60

2,902

4.8%

2.8%

Clarion

175

24,587

185

26,501

(10)

(1,914)

(5.4%)

(7.2%)

Econo Lodge

853

52,835

840

51,678

13

1,157

1.5%

2.2%

Rodeway

481

26,544

460

25,366

21

1,178

4.6%

4.6%

MainStay

47

3,629

42

3,304

5

325

11.9%

9.8%

Suburban

62

6,959

64

7,164

(2)

(205)

(3.1%)

(2.9%)

Ascend Hotel Collection

110

9,408

104

9,076

6

332

5.8%

3.7%

Cambria hotel & suites

24

2,917

20

2,404

4

513

20.0%

21.3%

Domestic Franchises

5,230

398,198

5,212

400,854

18

(2,656)

0.3%

(0.7%)

International Franchises

1,146

106,763

1,160

105,669

(14)

1,094

(1.2%)

1.0%

Total Franchises

6,376

504,961

6,372

506,523

4

(1,562)

0.1%

(0.3%)

 

 

 

Exhibit 6

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL INFORMATION BY BRAND

DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS

(UNAUDITED)

For the Six Months Ended June 30, 2015

For the Six Months Ended June 30, 2014

% Change

New

New

New

Construction

Conversion

Total

Construction

Conversion

Total

Construction

Conversion

Total

Comfort Inn

13

20

33

10

8

18

30%

150%

83%

Comfort Suites

13

2

15

7

-

7

86%

NM

114%

Sleep

9

-

9

14

1

15

(36%)

(100%)

(40%)

Quality

3

75

78

3

48

51

0%

56%

53%

Clarion

-

6

6

-

11

11

NM

(45%)

(45%)

Econo Lodge

-

28

28

-

27

27

NM

4%

4%

Rodeway

-

35

35

1

31

32

(100%)

13%

9%

MainStay

6

-

6

5

1

6

20%

(100%)

0%

Suburban

1

3

4

1

3

4

0%

0%

0%

Ascend Hotel Collection

1

16

17

6

6

12

(83%)

167%

42%

Cambria hotel & suites

7

-

7

1

-

1

600%

NM

600%

Total Domestic System

53

185

238

48

136

184

10%

36%

29%

For the Three Months Ended June 30, 2015

For the Three Months Ended June 30, 2014

% Change

New

New

New

Construction

Conversion

Total

Construction

Conversion

Total

Construction

Conversion

Total

Comfort Inn

9

13

22

7

5

12

29%

160%

83%

Comfort Suites

8

-

8

6

-

6

33%

NM

33%

Sleep

4

-

4

10

1

11

(60%)

(100%)

(64%)

Quality

1

46

47

2

38

40

(50%)

21%

18%

Clarion

-

3

3

-

9

9

NM

(67%)

(67%)

Econo Lodge

-

19

19

-

21

21

NM

(10%)

(10%)

Rodeway

-

21

21

-

16

16

NM

31%

31%

MainStay

2

-

2

1

1

2

100%

(100%)

0%

Suburban

1

1

2

-

2

2

NM

(50%)

0%

Ascend Hotel Collection

-

6

6

3

3

6

(100%)

100%

0%

Cambria hotel & suites

5

-

5

-

-

-

NM

NM

NM

Total Domestic System

30

109

139

29

96

125

3%

14%

11%

 

 

Exhibit 7

CHOICE HOTELS INTERNATIONAL, INC.

DOMESTIC PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT

(UNAUDITED)

A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors.

Variance

June 30, 2015

June 30, 2014

Units

Units

Conversion

New Construction

Total

Conversion

New Construction

Total

Conversion

New Construction

Total

Units

%

Units

%

Units

%

Comfort Inn

38

64

102

38

50

88

-

0%

14

28%

14

16%

Comfort Suites

3

76

79

1

47

48

2

200%

29

62%

31

65%

Sleep Inn

1

65

66

2

56

58

(1)

(50%)

9

16%

8

14%

Quality

54

5

59

41

6

47

13

32%

(1)

(17%)

12

26%

Clarion

11

2

13

12

2

14

(1)

(8%)

-

0%

(1)

(7%)

Econo Lodge

24

4

28

33

2

35

(9)

(27%)

2

100%

(7)

(20%)

Rodeway

34

3

37

31

2

33

3

10%

1

50%

4

12%

MainStay

1

47

48

2

35

37

(1)

(50%)

12

34%

11

30%

Suburban

6

12

18

7

14

21

(1)

(14%)

(2)

(14%)

(3)

(14%)

Ascend Hotel Collection

25

18

43

9

15

24

16

178%

3

20%

19

79%

Cambria hotel & suites

-

25

25

-

18

18

-

NM

7

39%

7

39%

197

321

518

176

247

423

21

12%

74

30%

95

22%

 

 

CHOICE HOTELS INTERNATIONAL, INC.

Exhibit 8

SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

(UNAUDITED)

CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS

(dollar amounts in thousands)

Three Months Ended June 30, 

Six Months Ended June 30, 

2015

2014

2015

2014

Franchising Revenues:

Total Revenues

$  232,156

$  197,664

$  407,401

$  357,400

Adjustments:

     Marketing and reservation revenues

(133,122)

(103,766)

(231,835)

(193,372)

     SkyTouch & Other

(411)

(68)

(1,014)

(121)

Franchising Revenues

$    98,623

$    93,830

$  174,552

$  163,907

Franchising Margins:

Operating Margin:

Total Revenues

$  232,156

$  197,664

$  407,401

$  357,400

Operating Income

$    62,917

$    60,153

$  104,321

$  101,325

     Operating Margin

27.1%

30.4%

25.6%

28.4%

Franchising Margin:

Franchising Revenues

$    98,623

$    93,830

$  174,552

$  163,907

Operating Income

$    62,917

$    60,153

$  104,321

$  101,325

Non-franchising activities operating loss

4,375

4,360

9,576

7,866

$    67,292

$    64,513

$  113,897

$  109,191

     Franchising Margins

68.2%

68.8%

65.3%

66.6%

CALCULATION OF FRANCHISING SELLING, GENERAL AND ADMINISTRATION EXPENSES

(dollar amounts in thousands)

Three Months Ended June 30, 

Six Months Ended June 30, 

2015

2014

2015

2014

Total Selling, General and Administrative Expenses

$    33,122

$    31,413

$    65,560

$    58,093

SkyTouch & other

(4,314)

(4,200)

(9,709)

(7,536)

Franchising Selling, General and Administration Expenses

$    28,808

$    27,213

$    55,851

$    50,557

CALCULATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")

(dollar amounts in thousands)

Three Months Ended June 30, 

Six Months Ended June 30, 

2015

2014

2015

2014

Income from continuing operations, net of income taxes

$    35,813

$    35,279

$    57,407

$    56,748

Income taxes

17,066

14,955

26,506

25,014

Interest expense

11,057

10,710

21,236

20,881

Interest income

(277)

(347)

(623)

(850)

Other (gains) and losses

(1,173)

(474)

(1,641)

(533)

Equity in net loss of affiliates

431

30

1,436

65

Depreciation and amortization

2,995

2,332

5,685

4,610

EBITDA

$    65,912

$    62,485

$  110,006

$  105,935

Franchising 

$    69,815

$    66,617

$  118,701

$  113,350

SkyTouch & other

(3,903)

(4,132)

(8,695)

(7,415)

$    65,912

$    62,485

$  110,006

$  105,935

 

 

 

CHOICE HOTELS INTERNATIONAL, INC.

Exhibit 9

 

DISCONTINUED OPERATIONS

 

(UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30, 

(In thousands)

2015

2014

2015

2014

REVENUES:

Hotel operations

$    -

$  111

$    -

$          801

      Total revenues

-

111

-

801

OPERATING EXPENSES:

Hotel operations

-

170

-

832

Total operating expenses

-

170

-

832

Operating income (loss)

-

(59)

-

(31)

Gain on disposal of discontinued operations

-

252

-

2,833

Income from discontinued operations before income taxes

-

193

-

2,802

Income tax 

-

72

-

1,040

Income from discontinued operations

$    -

$  121

$    -

$       1,762

 



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