Though key fourth-quarter and full-year efficiency metrics for Alternative Motels didn’t surprisingly decline year-over-year, the corporate pointed to its extended-stay portfolio as a vivid spot throughout its earnings name Wednesday.
Alternative prolonged keep manufacturers reported a 2020 median occupancy charge of 69 p.c. The corporate continued to broaden that portfolio, reaching 447 home long-stay motels as of December 31, 2020, a rise of 11 p.c year-over-year.
The WoodSpring Suites model reported 72 p.c common occupancy for 2020 and year-over-year income from obtainable room development in December of two p.c. Its room providing grew practically eight p.c throughout 2020. Suburban model nationwide long-stay franchise agreements granted throughout 2020 elevated 40 p.c year-over-year. The MainStay Prolonged Keep Suites model in 2020 elevated its variety of home motels open by 23 p.c and rooms by practically 38 p.c in comparison with 2019 and had the very best variety of resort openings in a yr within the historical past of the model.
“By 2020, Alternative awarded practically 110 extended-stay franchise agreements, validating our strategic focus on this phase for brand spanking new building and conversion alternatives,” stated Alternative President and CEO Patrick Pacious. “Given these outcomes we had in 2020, we stay optimistic concerning the development potential of our prolonged keep portfolio.”
Alternative’s complete home mid-range motels elevated 1.three p.c year-over-year in 2020, and the Consolation model reversed the pattern of dropping rooms with 2 p.c development in motels and rooms. Luxurious model Cambria elevated motels by eight p.c and rooms by 6 p.c in 2020.
Total, Alternative’s complete variety of home motels and rooms as of Dec. 31 elevated zero.2 p.c and zero.four p.c year-over-year, respectively, and the luxurious, mid-scale, and extended-stay home segments of Alternative reported mixture annual will increase of 1.eight p.c in motels and 1.6 p.c in rooms. The corporate granted 195 nationwide franchise agreements within the fourth quarter, a lower of 36 p.c year-over-year, and 427 for the total yr, a lower of 38 p.c. Greater than 70 p.c have been for conversions.
Key efficiency metrics
System-wide nationwide RevPAR for the fourth quarter decreased 25.1 p.c year-over-year to $ 30.72. The typical each day charge decreased 12 p.c to $ 68.37. The typical occupancy stage was 44.eight p.c, a drop of seven.9 share factors. For the total yr, RevPAR was down 30.7 p.c to $ 32.70, ADR was down 12.5 p.c to $ 71.63, and the common occupancy charge was 45.6 p.c, a lower of 12.1 share factors.
Internet earnings for the fourth quarter was $ 7.9 million, a year-on-year drop of 81 p.c. For the yr, web earnings decreased 66 p.c to $ 75.four million.
Alternative expects to see a sequential quarter-over-quarter enchancment in RevPAR change for the primary quarter of 2021 in comparison with the identical interval in 2019 and 2020. As of mid-February, the corporate’s year-to-date RevPAR had decreased by roughly one 18 p.c of the identical interval in 2020.
Alternative Q3 2020 Earnings