Choice Hotels International Inc. (NYSE:CHH) Q3 2016 Earnings Conference Call - Preliminary Transcript
Oct 27, 2016 • 10:00 am ET
Ladies and gentlemen, thank you for standing by. Good morning and welcome to the Choice Hotels International Third Quarter 2016 Earnings Conference Call. At this time, all lines are in a listen-only mode. Later, there will be a question-and-answer session and further instructions will be given at that time. As a reminder, today's call is being recorded.
During the course of this call conference call, certain predictive or forward-looking statements will be used to assist you in understanding the company and its results, which constitute forward-looking statements under the Safe Harbor provisions of the Securities Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Choice or its management believe, expects, anticipates, foresees, forecasts, eliminates, or other words or phrases of similar import.
Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Please consult the Company's Form 10-K for the year ended December 31, 2015 and other SEC filings for information about important risk factors affecting the company that you should consider.
Although, we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We caution you, do not place undue reliance on forward-looking statements, which reflects our analysis only and speak only as of today's date. We undertake no obligation to publicly update our forward-looking statements to reflect subsequent events or circumstances.
You can find a reconciliation of our non-GAAP financial measures referred to in our remarks as part of our third quarter 2016 earnings press release, which is posted on our website at choicehotels.com under the Investor Information section. With that being said, I would now like to introduce Steve Joyce, Chief Executive Officer of Choice Hotels International, Incorporated. Please go ahead, sir.
Good morning and thank you. Welcome to Choice Hotels' earnings conference call. Joining me, today is Scott Oaksmith, our Chief Accounting Officer. This morning, we're going to update you on our performance for the third quarter of 2016. It was another strong quarter with development increasing more business than ever being driven to our proprietary distribution channels and our RevPar results outperforming the competition.
So let's start with RevPar performance. This quarter domestic system RevPar increased 4.5%. Our domestic RevPar performance for the third quarter exceeded total industry results by 120 basis points and also exceeded growth reported by Smith Travel Research for all the segments in which we compete by 220 basis points. This marks the sixth consecutive month and eight of the last nine quarters that Choice's RevPar performance growth has outperformed the industry.
There is a number of factors that are driving these results. First; Comfort. Our efforts to rejuvenate the Comfort brand which have included the implementation of higher standards for hotels joining the brand, require meaningful property improvement plans and targeted underperforming comfort for termination and replacement with new construction product are all working. These efforts have results in