10-Q 1 chh-20220930.htm 10-Q chh-20220930
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 _____________________________________________ 
FORM 10-Q
 _____________________________________________ 
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED September 30, 2022
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NO. 001-13393
 _____________________________________________ 
CHOICE HOTELS INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
_____________________________________________ 
Delaware52-1209792
(State or Other Jurisdiction of
Incorporation or Organization)		(I.R.S. Employer
Identification No.)
1 Choice Hotels Circle20850
Suite 400
Rockville,Maryland
(Address of Principal Executive Offices)(Zip Code)

(Registrant’s telephone number, including area code): (301) 592-5000
(Former name, former address and former fiscal year, if changed since last report): N/A
 ________________________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, Par Value $0.01 per shareCHHNew York Stock Exchange
_____________________________________________  
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒     No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐ No  ☒
The number of shares of common stock outstanding on October 31, 2022 was 53,299,203.

CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
INDEX
 
 PAGE NO.

2
PART I. FINANCIAL INFORMATION
 
ITEM 1.FINANCIAL STATEMENTS

CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
        
Three Months EndedNine Months Ended
 September 30,September 30,
 2022202120222021
REVENUES
Royalty, licensing and management fees$144,020 $127,317 $356,208 $299,606 
Initial franchise fees7,011 6,149 21,635 18,904 
Procurement services14,401 13,010 47,887 36,293 
Owned hotels19,992 11,377 49,220 24,724 
Other31,432 8,645 51,588 20,753 
Other revenues from franchised and managed properties197,410 156,871 513,429 384,380 
Total revenues414,266 323,369 1,039,967 784,660 
OPERATING EXPENSES
Selling, general and administrative70,202 35,110 144,414 99,847 
Depreciation and amortization8,726 5,883 20,436 18,477 
Owned hotels13,158 7,054 32,004 16,534 
Other expenses from franchised and managed properties190,541 116,216 458,037 327,674 
       Total operating expenses
282,627 164,263 654,891 462,532 
Gain on sale of business and assets, net13,379 — 16,688 — 
Operating income145,018 159,106 401,764 322,128 
OTHER INCOME AND EXPENSES, NET
Interest expense9,362 11,638 32,084 35,106 
Interest income(2,348)(1,202)(5,256)(3,717)
Other loss (gain)2,303 407 9,578 (2,906)
Equity in net loss (gain) of affiliates(1,075)(3,326)(1,279)1,492 
Total other income and expenses, net8,242 7,517 35,127 29,975 
Income before income taxes136,776 151,589 366,637 292,153 
Income tax expense33,696 34,934 89,998 67,279 
Net income$103,080 $116,655 $276,639 $224,874 
Basic earnings per share$1.87 $2.10 $4.98 $4.05 
Diluted earnings per share$1.85 $2.08 $4.93 $4.01 
Cash dividends declared per share$0.2375 $0.225 $0.7125 $0.450 
The accompanying notes are an integral part of these consolidated financial statements.
3
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN THOUSANDS)
(UNAUDITED)
 
        
Three Months EndedNine Months Ended
 September 30,September 30,
2022202120222021
Net income$103,080 $116,655 $276,639 $224,874 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment(902)(57)(1,139)66 
Other comprehensive income (loss), net of tax(902)(57)(1,139)66 
Comprehensive income$102,178 $116,598 $275,500 $224,940 
The accompanying notes are an integral part of these consolidated financial statements.
4
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
(UNAUDITED)
September 30, 2022December 31, 2021
ASSETS
Current assets
Cash and cash equivalents$52,541 $511,605 
Accounts receivable (net of allowance for credit losses of $21,595 and $34,149, respectively)
297,628 153,147 
Income taxes receivable508 12,511 
Notes receivable (net of allowance for credit losses of $4,291 and $4,318, respectively)
52,381 54,453 
Prepaid expenses and other current assets56,091 29,945 
Total current assets459,149 761,661 
Property and equipment, at cost (net of accumulated depreciation and amortization of $248,137 and $232,492, respectively)
417,431 377,367 
Operating lease right-of-use assets70,533 34,183 
Goodwill227,703 159,196 
Intangible assets (net of accumulated amortization of $188,689 and $195,909, respectively)
723,617 312,389 
Notes receivable (net of allowance for credit losses of $7,122 and $12,461, respectively)
54,492 66,451 
Investments, employee benefit plans, at fair value29,010 33,946 
Investments in affiliates29,694 27,967 
Deferred income taxes90,847 68,643 
Other assets86,507 90,021 
Total assets$2,188,983 $1,931,824 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$129,856 $81,169 
Accrued expenses and other current liabilities125,227 104,472 
Deferred revenue85,863 81,538 
Current portion of long-term debt2,976 216,351 
Liability for guest loyalty programs82,461 86,765 
Total current liabilities426,383 570,295 
Long-term debt1,155,142 844,123 
Long-term deferred revenue134,171 105,785 
Deferred compensation and retirement plan obligations43,053 38,690 
Income taxes payable15,482 20,642 
Operating lease liabilities70,564 35,492 
Liability for guest loyalty programs49,113 41,785 
Other liabilities10,564 9,130 
Total liabilities1,904,472 1,665,942 
Commitments and Contingencies
Common stock, $0.01 par value; 160,000,000 shares authorized; 95,065,638 shares issued at September 30, 2022 and December 31, 2021; 53,773,667 and 55,609,226 shares outstanding at September 30, 2022 and December 31, 2021, respectively
951 951 
Additional paid-in-capital284,092 259,317 
Accumulated other comprehensive loss(5,713)(4,574)
Treasury stock, at cost; 41,291,971 and 39,456,412 shares at September 30, 2022 and December 31, 2021, respectively
(1,507,423)(1,265,032)
Retained earnings1,512,604 1,275,220 
Total shareholders’ equity 284,511 265,882 
Total liabilities and shareholders’ equity$2,188,983 $1,931,824 
The accompanying notes are an integral part of these consolidated financial statements.
5
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
Nine Months Ended
 September 30,
 20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$276,639 $224,874 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization20,436 18,477 
Depreciation and amortization – marketing, reservation, and system23,237 18,364 
Gain on sale and disposal of business and assets, net(16,688)— 
Amortization - franchise agreement acquisition cost 11,558 9,734 
Stock compensation and other charges28,621 24,277 
Interest and investment loss (income)9,135 (11,039)
Deferred income taxes(22,402)(34,285)
Equity in net loss of affiliates, less distributions received2,451 8,421 
Franchise agreement acquisition costs, net of reimbursements(32,947)(28,466)
Change in working capital and other(34,838)14,887 
Net cash provided by operating activities265,202 245,244 
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in property and equipment(66,084)(46,098)
Investment in intangible assets(3,247)(3,113)
Asset acquisitions, net of cash paid(856)— 
Proceeds from sale of business and assets140,554 — 
Proceeds from termination of intangibles5,698 — 
Business acquisition, net of cash acquired(550,431)— 
Contributions to investments in affiliates(4,264)(2,150)
Proceeds from sale of equity method investments— 15,554 
Purchases of investments, employee benefit plans(3,719)(1,279)
Proceeds from sales of investments, employee benefit plans1,896 2,487 
Issuance of notes receivable(5,617)(17,918)
Collections of notes receivable701 63 
Other items, net1,708 (115)
Net cash used in investing activities(483,661)(52,569)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments to extinguish acquired debt(55,975)— 
Proceeds from acquired derivative1,943 — 
Net borrowings pursuant to revolving credit facilities315,000 — 
Principal payments on 2012 senior notes(216,571)— 
Debt issuance costs(24)(365)
Purchases of treasury stock(246,530)(10,039)
Dividends paid(39,697)(12,528)
Proceeds from exercise of stock options2,361 10,817 
Net cash used in financing activities(239,493)(12,115)
Net change in cash and cash equivalents(457,952)180,560 
Effect of foreign exchange rate changes on cash and cash equivalents(1,112)(223)
Cash and cash equivalents at beginning of period511,605 234,779 
Cash and cash equivalents at end of period$52,541 $415,116 
Supplemental disclosure of cash flow information:
Cash payments during the period for
Income taxes, net of refunds$81,479 $58,229 
Interest, net of capitalized interest$36,691 $36,519 
Non-cash investing and financing activities
Dividends declared but not paid$12,776 $12,517 
Investment in property, equipment and intangibles acquired in accounts payable and accrued liabilities$5,352 $6,920 
Asset acquisition from extinguishment of note receivable$20,446 $— 

The accompanying notes are an integral part of these consolidated financial statements.
6
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
(UNAUDITED)

Common
Stock -
Shares
Outstanding		Common
Stock -
Par
Value		Additional
Paid-in-
Capital		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Stock		Retained
Earnings		Total
Balance as of December 31, 202055,535,554 $951 $233,921 $(4,646)$(1,260,478)$1,024,500 $(5,752)
Net income— — — — — 22,337 22,337 
Other comprehensive income (loss), net of tax— — — 52 — — 52 
Share-based payment activity(1)
48,781 — 3,617 — 4,030 (3)7,644 
Dividends declared(1)
— — — — — — — 
Treasury purchases(46,499)— — — (5,046)— (5,046)
Balance as of March 31, 202155,537,836 $951 $237,538 $(4,594)$(1,261,494)$1,046,834 $19,235 
Net income— — — — — 85,882 85,882 
Other comprehensive income (loss)— — — 71 — — 71 
Share based payment activity(1)
111,895 — 9,066 — 3,516 1 12,583 
Dividends declared ($0.225 per share)(1)
— — — — — (12,521)(12,521)
Treasury purchases(2,738)— — — (317)— (317)
Balance as of June 30, 202155,646,993 $951 $246,604 $(4,523)$(1,258,295)$1,120,196 $104,933 
Net income— — — — — 116,655 116,655 
Other comprehensive income (loss)— — — (57)— — (57)
Share based payment activity (1)
23,757 — 6,757 — 1,045 6 7,808 
Dividends declared ($0.225 per share) (1)
— — — — — (12,517)(12,517)
Treasury purchases(40,046)— — — (4,676)— (4,676)
Balance as of September 30, 202155,630,704 $951 $253,361 $(4,580)$(1,261,926)$1,224,340 $212,146 

7
Common
Stock -
Shares
Outstanding		Common
Stock -
Par
Value		Additional
Paid-in-
Capital		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Stock		Retained
Earnings		Total
Balance as of December 31, 202155,609,226 $951 $259,317 $(4,574)$(1,265,032)$1,275,220 $265,882 
Net income— — — — — 67,391 67,391 
Other comprehensive income (loss), net of tax— — — (134)— — (134)
Share-based payment activity(1)
262,008 — 6,068 — 3,486 4 9,558 
Dividends declared ($0.2375 per share)(1)
— — — — — (13,250)(13,250)
Treasury purchases(100,912)— — — (14,802)— (14,802)
Balance as of March 31, 202255,770,322 $951 $265,385 $(4,708)$(1,276,348)$1,329,365 $314,645 
Net income— — — — — 106,168 106,168 
Other comprehensive income (loss), net of tax— — — (103)— — (103)
Share based payment activity(1)
12,422 — 8,999 — 596 — 9,595 
Dividends declared ($0.2375 per share)(1)
— — — — — (13,242)(13,242)
Treasury purchases(2,422)— — — (338)— (338)
Balance as of June 30, 202255,780,322 $951 $274,384 $(4,811)$(1,276,090)$1,422,291 $416,725 
Net income— — — — — 103,080 103,080 
Other comprehensive income (loss), net of tax— — — (902)— — (902)
Share based payment activity(1)
(1,655)— 9,708 — 55 — 9,763 
Dividends declared ($0.2375 per share)(1)
— — — — — (12,767)(12,767)
Treasury purchases(2,005,000)— — — (231,388)— (231,388)
Balance as of September 30, 202253,773,667 $951 $284,092 $(5,713)$(1,507,423)$1,512,604 $284,511 
(1) In April 2020, in light of uncertainty resulting from the COVID-19 pandemic, the Company suspended future, undeclared dividends. In May 2021, the Company resumed the payment of quarterly dividends, subject to future declarations by the Company's board of directors, and declared a quarterly cash dividend of $0.225 per share of common stock. On December 6, 2021, the Company's board of directors approved a 6% increase in the quarterly cash dividend and declared a quarterly cash dividend of $0.2375 per share of common stock. During certain periods presented, accumulated dividends were paid to certain shareholders upon vesting of performance vested restricted stock units ("PVRSU") which are captured in Share-based payment activity.

The accompanying notes are an integral part of these consolidated financial statements.


8
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.    Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The accompanying unaudited consolidated financial statements of Choice Hotels International, Inc. and its subsidiaries (together "Choice" or the "Company") have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated in consolidation.
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments that are necessary to fairly present the Company's financial position and results of operations. Except as otherwise disclosed, all adjustments are of a normal recurring nature.
Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been omitted. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2021 and notes thereto included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 24, 2022. Interim results are not necessarily indicative of the entire year results.
Acquisition of Radisson Hotels Americas
On August 11, 2022, the Company completed the acquisition (the "Transaction") of (1) all of the issued and outstanding shares of Radisson Hospitality, Inc. and (2) certain trademarks held by Radisson Hospitality Belgium BV/SRL (collectively referred to as "Radisson Hotels Americas"). With the close of this Transaction, Choice Hotels International has added approximately 67,000 rooms across the United States, Canada, Caribbean and Latin America. The Transaction expands the Company's footprint in international markets and the upper-upscale and upscale full-service segments and enhances guest offerings in the core upper-midscale segment. It also accelerates our asset-light strategy of growth in higher revenue travel segments and locations.
The Company has determined it is the accounting acquirer of Radisson Hotels Americas and has accounted for the Transaction as a business combination using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date.
Other revenues and expenses from franchised and managed properties
In conjunction with the third quarter acquisition of Radisson Hotels Americas, Inc., which resulted in the Company acquiring certain management contracts, the Company has revised its historical presentation of marketing, reservation and system fees and expenses to include fees and expenses related to the acquired management contracts.
The presentation of Other revenues from franchised and managed properties represents amounts contractually reimbursable by, or amounts billed and collected in advance from, owners of franchised and managed properties, relating to certain costs and expenses paid by us in support of the operations of these properties. Indirect and direct reimbursements are as follows:
•Direct reimbursements include payroll and related costs and certain other operating costs of the managed and franchised properties' operations, which are contractually reimbursed to us by the property owners as expenses are incurred. Revenue is recognized based on the amount of expenses incurred by Choice, which are presented as other expenses from managed and franchised properties in our consolidated statements of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income or net income.

•Indirect reimbursements include marketing, reservation, system and other expenses associated with our brand programs and shared services, which are paid from royalties and program fees collected by Choice from the managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (such as gross room revenue or number of reservations processed), and revenue is generally recognized as services are provided. The expenses incurred by Choice to operate the marketing and brand programs
9
and shared services are recognized as incurred and presented as Other expenses from managed and franchised properties in our consolidated statements of income and are expected to equal the revenues earned from indirect reimbursements over time.

Royalty, licensing and management fees

In conjunction with the Transaction, the Company has revised its historical presentation of Royalty fees to Royalty, licensing and management fees to reflect current and future period activity, which includes revenue associated with the acquired management contracts.

Initial franchise fees

The Company has revised its historical presentation of Initial franchise and relicensing fees to Initial franchise fees.

Summary of Significant Accounting Policies
The Company’s significant accounting policies are detailed in the “Summary of Significant Accounting Policies” section of Note 1 in the Annual Report on Form 10-K for the year ended December 31, 2021.
Recently Adopted Accounting Standards
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Revenue from Contracts with Customers (Topic 606), as if the acquirer had originated the contracts at the date of the business combination. ASU 2021-08 is effective for annual reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted.
The Company elected to early adopt ASU 2021-08 in the second quarter of 2022. There was no retrospective impact to our consolidated financial statement as a result of the adoption. ASU 2021-08 was applied in the accounting for the acquisition of Radisson Hotels Americas, and accordingly, the Company determined that the carrying value of the contract assets and contract liabilities of Radisson Hotels Americas reflects fair value (see Note 15).
Recently Issued Accounting Standards
In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses ("ASU 2022-02"). ASU 2022-02 eliminates the recognition and measurement guidance on troubled debt restructuring for creditors that have adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) ("Topic 326"), requires enhanced disclosures about loan modifications for borrowers experiencing financial difficulty, and includes new guidance on current-period gross write-offs presentation. ASU 2022-02 is effective for annual reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the potential impact that ASU 2022-02 will have on the consolidated financial statements and disclosures.
2.    Revenue
Contract Liabilities
Contract liabilities relate to (i) advance consideration received, such as initial franchise fees paid when a franchise agreement is executed and system implementation fees paid at time of installation, for services considered to be part of the brand intellectual property performance obligation and (ii) amounts received when loyalty points are issued, but for which revenue is not yet recognized since the related loyalties points have not been redeemed.
Deferred revenues from initial fees and system implementation fees are typically recognized over a five- to ten-year period, unless the franchise agreement is terminated and the hotel exits the franchise system whereby remaining deferred amounts are recognized to revenue in the period of termination. Loyalty points are typically redeemed within three years of issuance.
Significant changes in the contract liabilities balances during the period December 31, 2021 to September 30, 2022 are as follows:
(in thousands)
Balance as of December 31, 2021$175,425 
Assumption of contract liabilities from Radisson Hotels Americas acquisition 30,031 
Increases to the contract liability balance due to cash received84,356 
Revenue recognized in the period(86,473)
Balance as of September 30, 2022$203,339 
Remaining Performance Obligations
The aggregate amount of transaction price allocated to unsatisfied or partially unsatisfied performance obligations is $203.3 million as of September 30, 2022. This amount represents fixed transaction price that will be recognized as revenue in future periods, which is captured in the consolidated balance sheet as current and non-current deferred revenue.
Based on practical expedient elections permitted by ASU 2014-09, Revenue From Contracts with Customers (Topic 606) and subsequent amendments ("Topic 606"), the Company does not disclose the value of unsatisfied performance obligations for (i) variable consideration subject to the sales or usage-based royalty constraint or comprising a component of a series (including franchise, partnership, qualified vendor, and software as a service ("SaaS") agreements), (ii) variable consideration for which we recognize revenue at the amount to which we have the right to invoice for services performed, or (iii) contracts with an expected original duration of one year or less.
Disaggregation of Revenue
Three Months EndedThree Months Ended
September 30, 2022September 30, 2021
(in thousands)Over timePoint in timeTotalOver timePoint in timeTotal
Royalty, licensing and management fees$143,987 $33 $144,020 $127,317 $— $127,317 
Initial franchise fees7,011 — 7,011 6,149 — 6,149 
Procurement services13,628 773 14,401 12,285 725 13,010 
Owned hotels14,854 5,115 19,969 9,614 1,652 11,266 
Other31,432 — 31,432 8,645 — 8,645 
Other revenues from franchised and managed properties178,349 19,061 197,410 145,216 11,655 156,871 
Total Topic 606 revenues$389,261 $24,982 414,243 $309,226 $14,032 323,258 
Non-Topic 606 revenues23 111 
Total revenues$414,266 $323,369 
Nine Months EndedNine Months Ended
September 30, 2022September 30, 2021
(in thousands)Over timePoint in timeTotalOver timePoint in timeTotal
Royalty, licensing and management fees$356,175 $33 $356,208 $299,606 $— $299,606 
Initial franchise fees21,635 — 21,635 18,904 — 18,904 
Procurement services45,503 2,384 47,887 34,526 1,767 36,293 
Owned hotels39,490 9,500 48,990 20,683 3,709 24,392 
Other51,588 — 51,588 20,753 — 20,753 
Other revenues from franchised and managed properties438,734 74,695 513,429 346,211 38,169 384,380 
Total Topic 606 revenues$