Hotel Companies Post Strong Earnings

Both Choice Hotels and Wyndham Worldwide this week reported double-digit percentage growth in earnings during the fourth quarter of 2007, boosted by higher lodging revenues.

Choice beat analyst expectations by reporting 13 percent earnings growth for the quarter to $27.9 million, compared with $24.6 million in the fourth quarter of 2006. Revenues were up 18.6 percent to $142.5 million, and systemwide revenue per available room was up 4.6 percent for the quarter.

Wyndham also reported 13 percent growth in its fourth-quarter earnings to $104 million, compared with $92 million in the fourth quarter of 2006. Revenues were up 16 percent to $176 million, and systemwide RevPAR was up 5.9 percent.

Both hotel companies maintained optimistic forecasts for the coming quarters, although some analysts warned that such economic factors as rising fuel costs and housing market woes could indicate a few difficult quarters ahead.

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