Choice Hotels to change revenue recognition practice Choice Hotels International announced that the Company will change its practice of accounting for royalty and certain marketing and reservation fees in order to comply with generally accepted accounting principles in the U.S. by reporting these fees in the same period that the underlying gross room revenues are earned by the Company's franchisees rather than one month in arrears. This change will result in immaterial upward adjustments to annual statements and will result in certain quarterly and interim periods being restated.
Choice Hotels downgraded to Underweight from Equal Weight at Barclays Barclays downgraded Choice Hotels to Underweight citing valuation as it believes the current share price reflects the company's improving business. The firm raised its price target for shares to $61 from $55.
Choice Hotels sees FY15 EPS $2.14-$2.21, consensus $2.26 Sees FY15 EBITDA $236M-$241M. Sees FY15 effective tax rate for cont ops to be 31.1%. Sees FY15 Franchising EBITDA $254M-$259M. Sees FY15 Franchising net domestic unit growth to be approximately 1%. Sees FY!5 Franchising RevPAR to increase 6.5%-8%.