Choice Hotels (NYSE: CHH) reported Q2 EPS of $0.68, $0.01 better than the analyst estimate of $0.67. Revenue for the quarter came in at $241.8 million versus the consensus estimate of $245.03 million.

The company's consolidated 2016 outlook reflects the following assumptions:

Hotel Franchising

• Adjusted EBITDA from franchising activities for full-year 2016 are expected to range between $270 million and $274 million;
• Net domestic unit growth for 2016 is expected to be between 2% and 3%;
• RevPAR is expected to increase between 3.5% and 4.0% for third quarter and range between 3.5% and 4.0% for full-year 2016; and
• The effective royalty rate is expected to increase between 7 and 9 basis points for full-year 2016 as compared to full-year 2015.

Non-Hotel Franchising Activities

• Net reductions in full-year 2016 EBITDA relating to our non-hotel franchising operations, which primarily relate to SkyTouch and vacation rental activities are expected to range between approximately $16 million and $19 million.

Other Items

• The effective tax rate is expected to be approximately 32.5% and 31.7% for the third quarter and full-year 2016.
• Adjusted EBITDA and adjusted EPS estimates exclude executive termination benefits incurred in the second quarter of 2016 as discussed above under Special Item.
• Diluted EPS estimates are based on the current number of shares outstanding and thus do not factor in any changes that may occur due to new equity grants or any further repurchases of common stock under the company's share repurchase program.

For earnings history and earnings-related data on Choice Hotels (CHH) click here.