Ladies and gentlemen, thank you for standing by. Welcome to Choice Hotels International's fourth quarter and full year 2021 earnings call. At this time, all lines are in a listen-only mode. I will now turn the conference over to Allie Summers, Investor Relations Director for Choice Hotels. Good morning, and thank you for joining us today. Before we begin, we'd like to remind you that during this conference call, certain predictive or forward-looking statements will be used to assist you in understanding the company and its results. Actual results may differ materially from those indicated in forward-looking statements, and you should consult the company's Forms 10-Q, 10-K, and other SEC filings for information about important risk factors affecting the company that you should consider. These forward-looking statements speak as of today's date, and we undertake no obligation to publicly update them to reflect subsequent events or circumstances. You can find a reconciliation of our non-GAAP financial measures referred to in our remarks as part of our fourth quarter and full year 2021 earnings press release, which is posted on our website at choicehotels.com under the investor relations section. This morning, Patrick Pacious, our President and Chief Executive Officer, and Dominic Dragisich, our Chief Financial Officer, will speak to our fourth quarter and full year operating results and financial performance. They'll be joined by Scott Oaksmith, Senior Vice President, Real Estate and Finance. Following Pat and Don's remarks, we'll be glad to take your questions. With that, I'll turn the call over to Pat. Thanks, Allie, and good morning, everyone. We appreciate your taking the time to join us. 2021 was a remarkable year for Choice Hotels, a year our RevPAR and adjusted EBITDA performance surpassed both 2019 levels and our previously reported guidance. Our full year 2021 RevPAR increased 2.2% compared to 2019, and our full year 2021 adjusted EBITDA grew 8% compared to 2019. We drove RevPAR results for full year 2021 that materially outperformed the industry and gained share across all segments in which we compete. Our fourth quarter RevPAR growth was exceptional, with RevPAR increasing 13.9% from the same quarter of 2019 and marking the strongest quarter of the year. This performance was driven by a set of deliberate actions before and during the pandemic, resulting in Choice Hotels emerging as an even stronger company than we were in 2019. Throughout 2021, our performance continued to strengthen, exceeding our 2019 RevPAR levels for the last seven months of the year. As previously reported, our economy segment led the recovery beginning in the second quarter of the year. Our upper mid-scale and mid-scale segments quickly followed, surpassing 2019 levels in the third quarter. Our RevPAR growth rates have continued to improve quarter-over-quarter since the onset of the pandemic. In 2022, we expect our momentum to continue into the first quarter despite the Omicron variant. In fact, our January RevPAR results exceeded 2019 levels by approximately 12%. We are very optimistic about our runway for growth because of the long-term investments we have made and will continue to make in our business. These investments are designed to capitalize on the consumer trends that have accelerated during the pandemic, favoring leisure travel, limited service hotels, and longer length of stay. We expect these trends to continue to be strong, long-term tailwinds for our company. Prior to the pandemic, four out of five trips taken in the U.S. were for leisure purposes, and the domestic leisure travel segment growth is expected to increase from pre-pandemic levels and continue to fuel the performance of our brands. The rate of workers retiring in the U.S. has more than tripled as compared to pre-pandemic levels, and the baby boomers, one of our key customer segments, have more time and disposable income to travel. In addition, domestic remote workers, whose number is expected to increase from a pre-pandemic level of 19 million to 41 million in the next five years, will have greater flexibility as to when, where, and for how long they travel for leisure. Furthermore, in strategically expanding our extended stay footprint, we have positioned Choice Hotels to benefit from consumer trends that favor longer length of stay travel driven by increases in extended vacations, household relocations, and temporary remote work assignments. Speaking of work assignments, throughout 2021, we witnessed sequential quarter-over-quarter increases in our business travel bookings, with demand and overall revenues continuing the steady progression back to 2019 levels. We expect our business and group travel demand to further strengthen and serve as a catalyst for our portfolio. We are also observing business travel trends that we believe are favorable to our brands. We expect business travel in our key industry verticals to increase with the additional onshoring of the U.S. supply chain. A recent survey indicated that over 80% of North American manufacturers are likely to reshore their production operations. This trend has already contributed to the accelerated recovery of our business travelers. At the same time, we are well-positioned to benefit from leisure travel becoming more mainstream among business travelers, consistent with a recent study that nearly 90% of business travelers report wanting to add a private holiday to their business trips. We expect upcoming investments from the infrastructure bill will favor our business travelers and locations. Finally, with over 80% of American travelers surveyed saying they are ready to travel, among the highest levels we have seen over the last two years, we are confident that these trends and segment-specific tailwinds will allow us to deliver continued RevPAR and adjusted EBITDA growth in 2022 and beyond. Our goal is not to simply exceed 2019 performance levels, but rather to capitalize on current and future investments to fuel our long-term growth and drive our RevPAR performance to new levels. I will now more specifically outline why we are confident that Choice Hotels is in a stronger position than we were in 2019. During the past two years, we established key strategic building blocks that will provide us with a solid foundation for driving our continued sustained growth in the years to come. First, we strengthened our core portfolio of brands. We have reinvested in the future of our midscale brand portfolio with Comfort's Move to Modern transformation. Since its successful refresh, the Comfort brand has registered 2 consecutive years of unit growth year-over-year and continued to generate RevPAR index gains versus its local competitors, demonstrating the attractiveness of this iconic brand to hotel developers and guests alike. Our Quality Inn brand, with over 1,600 hotels open in the United States, continues to be a leader in the midscale segment with strong developer demand and a 14.3% increase in RevPAR during the fourth quarter versus the same period of 2019. Due to the significant developer demand for this brand, we strategically exited a number of underperforming assets in the fourth quarter in order to open attractive markets to new owners and maximize the market potential for more profitable hotels. Our Clarion Pointe brand has also continued to grow. In just 3 years since its launch, Clarion Pointe expanded to 43 hotels open in the U.S., with another 33 hotels awaiting conversion this year. We also further invested in the extended stay segment, which is a significant driver of our growth. Our extended stay portfolio continued its rapid expansion and drove impressive RevPAR growth. Last year's strong developer interest for our extended stay brands exceeded 2019 levels, and we expanded our domestic pipeline to over 340 hotels. Since acquiring the WoodSpring Suites brand 4 years ago, we have grown its portfolio of domestic hotels by 30%. Our investment in the brand's marketing and distributions capabilities, reflected in the nearly 130% increase in the brand's website booking revenue since 2018, enabled us to achieve nearly 30% RevPAR growth in the fourth quarter of 2021 compared to 2019. Last year alone, the WoodSpring Suites brand's pipeline reached nearly 190 domestic properties, a 24% increase year-over-year, with nearly 30 construction projects started, and we expect the brand's ground break this year to exceed 2021 levels. In addition, the first hotel for our newest extended stay brand, Everhome Suites, is currently under construction and scheduled to open this summer. The appeal for this new product in the development community continues to grow, with 16 domestic franchise agreements awarded last year and a significantly higher number of contracts expected for 2022. We are also pleased with the continued expansion of our other growth vector, the upscale portfolio, driven by both Cambria Hotels and the Ascend Hotel Collection. The Cambria brand continued its positive unit growth momentum, expanding to 57 units, with 17 projects already under active construction at the end of December, and four groundbreaks in the fourth quarter alone. 2022 is shaping up to be another great year for Cambria, and we expect over 10 additional hotels to open across the country. Once open, these upscale properties are expected to further fuel the revenue intensity of our system. Consumer confidence in our upscale products drove the brand's RevPAR outperformance versus their local competitors, and demonstrates the attractiveness of Choice Hotels' value proposition in the upscale segment for current and prospective owners. We also continue to propel our future forward by improving the value proposition capabilities we deliver to our franchise owners, which enabled us to continue to grow our effective royalty rate while capturing more domestic franchise agreements in 2021 year-over-year. Specifically, our pricing optimization and merchandising capabilities are further enabling our owners to effectively capture additional market share, drive top-line revenue, and reach their target customers. Our leadership in this area is reflected in the prestigious award we recently received for our leading-edge revenue management tool, recognized as the industry's most innovative enterprise technology. The tools we have introduced are contributing to the outperformance our brands are experiencing. In fact, during the past two years, our RevPAR gains, as compared to 2019, have been significantly higher than the competition's. What's most impressive is that we continue to drive strong performance through both rate and occupancy share gains. We expect to maintain share gains moving forward. As a result of our progress, we are well-positioned for stronger profitability in the future, with ample runway ahead of us as we execute our strategy. The results we achieved in 2021 confirm that our long-term strategy of further improving our revenue delivery to our franchisees while focusing on growth in more revenue-intense segments and locations is working. This is what gives us such high confidence in our ability to continue to drive exceptional results in the coming years. In addition to our performance, I want to recognize the efforts we are making to live up to our ESG commitments, which, like our strategy, are long-term focused. Our fully dedicated team within our development and franchise service departments continues to drive diverse ownership of Choice franchised hotels among underrepresented and minority owners. With nearly 30 franchise contracts awarded in 2021, bringing the total agreements executed to over 290 since the program began over 15 years ago. I am especially pleased to note that 8 in 10 total agreements among underrepresented and minority owners executed this year were awarded to women entrepreneurs. To take our sustainability efforts to the next level, we began piloting a property management dashboard, which will enable our franchisees to track utilities usage at the hotel level and help identify opportunities for additional energy, water, and waste conservation that can not only protect the environment, but also reduce their operating costs. We also have recently announced a commitment to phasing out single-use polystyrene products across our domestic brands by year-end 2023, and to make bulk bathroom amenities standard across domestic brands by year-end 2025. Further details regarding our efforts to live up to our long-standing commitments to diversity and sustainability are outlined in our recently published ESG report. We're proud of everything we've accomplished this year, but we certainly could not have done it without the dedication of our associates and the strength of our award-winning culture focused on diversity, equity, and belonging. I'm especially pleased to say that Choice was recently named one of the best employers by Forbes for the fourth consecutive year, one of the best places to work for LGBTQ equality by the Human Rights Campaign for the eleventh year in a row, and one of the best companies for diversity by Comparably for a second straight year. In closing, I'm confident in our continued ability to create value and deliver results for our owners and shareholders through our effective strategic investments and impressive performance. As we begin this new year, we are confident that we are well-positioned to build on the success achieved in 2021 and our increased earnings power to further capitalize on growth opportunities in 2022 and beyond. With that, I'll hand it over to our CFO. Dom? Thanks, Pat, and good morning, everyone. I hope that you and your families are all well. Today, I'd like to provide you with additional details for our fourth quarter and full year results, update you on our liquidity profile and capital allocation, and share thoughts on our outlook for the road ahead. As we've discussed in the previous quarters, we are comparing our financial performance and RevPAR growth to 2019, which we believe offers a more meaningful basis for analyzing trends. For comparisons to 2020, please refer to today's earnings press release. For full year 2021, a combination of impressive RevPAR performance, revenue-intensive unit growth, and strong effective royalty rate growth, coupled with disciplined cost management, resulted in Choice Hotels' full year adjusted EBITDA exceeding the 2019 levels. In fact, our full year adjusted EBITDA increased 8% compared to the same period of 2019 and exceeded the top end of our previous full year guidance, even with incremental investments in the fourth quarter. Our adjusted EBITDA margin for full year 2021 expanded to nearly 75%, an increase of over 5 percentage points compared to 2019. These figures for both our adjusted EBITDA and adjusted EBITDA margin in 2021 are new records for our company. Given these impressive results, combined with our confidence that we will continue to generate strong cash flow and our optimism in our future growth prospects, we recently increased the quarterly dividend to a level higher than pre-pandemic. This follows the previously announced reinstatement of our share repurchase program. For the fourth quarter of 2021, compared to the same period of 2019, total revenues, excluding marketing and reservation system fees, were $140.2 million, an 8% increase, and adjusted EBITDA grew 14% to $95.5 million. As a result, our adjusted earnings per share were $0.99 for the fourth quarter, an increase of 8% versus the same period of 2019. I'd like to now turn to our three key revenue levers, beginning with royalty rate. Our effective royalty rate continues to be a significant source of our revenue growth. Our domestic effective royalty rate exceeded 5% for both the fourth quarter and full year 2021, increasing by seven basis points from full year 2020 year-over-year. This performance reflects the continued strengthening of our value proposition to our franchise owners, the attractiveness of our proven brands, and the promising prospects in our pipeline. It also provides further validation of our long-term past, current, and future investments on behalf of our franchisees. We expect our effective royalty rate to continue to grow in the mid-single digits in 2022 as owners continue to seek Choice Hotels' proven capabilities to consistently deliver strong top-line revenues that maximize return on investment while reducing their total cost of ownership. Our domestic system-wide RevPAR outperformed the overall industry by 19 percentage points for the full year, increasing 2.2% versus the same period of 2019. For the fourth quarter, our domestic system-wide RevPAR increased 13.9% versus fourth quarter 2019, driven by average daily rate growth of 9.5% and a more than 2 percentage point increase in occupancy levels. In addition, our results continued to outpace the primary chain scale segments in which we compete, as reported by STR, by nearly 7 percentage points for full year 2021. As we've discussed in prior calls, our brand strategy is focused on driving growth across the higher value and more revenue-intensive segments, upscale, extended stay, and mid-scale. Our investments in these strategic segments have enabled us to materially outperform the industry in RevPAR growth and continue to gain share versus our local competitors across all of our brands in 2021 versus 2019. For full year 2021, we increased RevPAR index versus our local competitors by over 4 percentage points as compared to 2019, reflecting continued growth in both weekday and weekend RevPAR index. Specifically, we gained significant average daily rate index share versus local competitors and achieved average daily rate growth stronger than the industry. This is a result of key investments we made during the pandemic, including our award-winning revenue management tool that we successfully rolled out across our system last year. The expert advice from our revenue management consultants, along with tools and capabilities provided to our franchise owners, are helping them to quickly determine and execute the right pricing strategy, an increasingly important factor during an inflationary environment. We expect that upcoming enhancements to our revenue management tool will allow us to further drive rate growth and rate share in 2022 and beyond. The third revenue lever I'd like to discuss is unit growth, where our portfolio's absolute size and the revenue intensity of its hotels are key advantages. In fact, a new unit entering the Choice Hotels system in 2021 generated, on average, twice the revenue as a unit exiting our system. Given our continued impressive performance, our brands remain in high demand from the franchise community, providing us the opportunity to further strengthen our portfolio. As a result, during the fourth quarter, we made a strategic long-term decision to exit just over 40 underperforming assets that were below our standards and generated lower royalties, primarily within the Quality brand and economy portfolio. We expect these targeted terminations will enable us to increase royalty revenue by replacing these underperforming assets with higher quality and more revenue-intensive units that will provide an improved experience for our guests. Furthermore, since these terminations were primarily from our conversion brands, we believe we can replace these hotels quickly, minimizing the short-term impact on our royalties. In addition to these strategic terminations, our domestic unit growth figures include the exit of 17 AMResorts from our Ascend Hotel Collection during the fourth quarter due to the termination of our relationship with AMResorts following its acquisition. Although the subtraction of these properties impacted the company's unit growth, its impact on overall revenues was immaterial, as these resorts entered our system during the pandemic and the revenue potential from these properties had not been fully realized. Furthermore, we are confident that we can replace these properties with other platform partners in the future and capture the incremental long-term revenue opportunity they may provide. Excluding the departures of these hotels from the portfolio, our revenue-intensive brands grew by nearly 2% compared to year-end 2020. Developers continue to choose our brands versus the competition as they seek to improve their operations and boost the long-term value of their hotels. For full year 2021, we awarded 528 new domestic franchise agreements, a 24% increase over the same period of 2020. Demand for our conversion brands in 2021 increased by 17% year-over-year, aided by our strong value proposition and our continued RevPAR performance. In closing 2021, December saw strong momentum with one quarter of the total agreements for the year executed during the month, and openings that were stronger than December's 2019 levels. This momentum gives us further confidence in the prospects for our continued growth in 2022 and beyond. Our developers are also increasingly optimistic about the long-term fundamentals of the lodging industry. In fact, 1 in 3 domestic franchise agreements awarded in the fourth quarter were for new construction contracts, representing an increase of nearly 60% versus the same quarter of the prior year. Let me now turn to one of the major reasons why we are an even stronger company today than we were in 2019, giving us confidence in our ability to continue to gain travel demand share, the strength of our balance sheet. As a result of our strong performance and effective allocation of resources to drive top line outperformance, the company has further bolstered its liquidity position. More specifically, from 2019 to 2021 year-end, the company nearly doubled its cash and available borrowing capacity through its revolving credit facility to $1.1 billion at the end of fourth quarter 2021. We are also pleased to report cash flow from operations of over $380 million for 2021, a 42% increase versus 2019. Nearly $140 million, or one-third of the full year total, was generated in the fourth quarter alone. Most importantly, these results were achieved despite a year where we increased our investments in our brands and value proposition, further strengthening our capabilities. We continue to maintain a best-in-class balance sheet with gross debt to EBITDA leverage levels below our targeted range of 3x-4x, and a net debt to EBITDA leverage level at 1.4x as of the end of 2021. This lower leverage reflects our improved profitability and provides us the flexibility to utilize our balance sheet as needed for additional growth. These impressive results, along with our liquidity position, a higher collections rate than pre-pandemic due to our improved value proposition, and our confidence in our ability to generate strong levels of cash, mean we are well-positioned to continue to grow our business and return excess cash flow to shareholders well into the future. Last year, we returned over $38 million back to our shareholders in the form of cash dividends and repurchases of our common stock, followed by an additional $17.6 million returned to shareholders in January 2022. During the fourth quarter of 2021, the company's board of directors announced a 6% increase to the annual dividend. This year, we expect to pay dividends totaling over $50 million. Throughout the pandemic, we've demonstrated our ability to adapt while continuing to invest in the core business and deploying capital for ancillary growth opportunities. We will continue to monitor the environment for investment opportunities and expect to continue to utilize our strong leverage position to invest in growth to drive attractive returns for years to come. As we enter 2022, we expect to have all of our capital allocation levers fully at our disposal. Before opening it up for questions, I'd like to turn to our expectations for what lies ahead. While the company exceeded pre-pandemic levels for RevPAR and adjusted EBITDA for full year 2021, the continued precise recovery trends for full year 2022 are still somewhat uncertain. We expect the consumer and macro demand trends mentioned previously to continue to drive outperformance within our brand segment. To capitalize on this opportunity and capture a larger share of the travel demand, 2022 will continue to be an investment year for us. As such, we expect to incur higher SG&A expenses year-over-year in 2022 and revert back to historical growth rates thereafter. For full year 2022, we expect to drive continued growth in both RevPAR and adjusted EBITDA compared to full year 2021, even with these planned elevated investments. We will continue to monitor the broader environment with its recovery trends, adjusting the level of our investments accordingly, and will provide further updates in May during our next earnings call. In closing, I want to reiterate our confidence in our long-term strategic approach and the resilience of our business model. We believe these strengths, combined with our disciplined capital allocation strategy and strong balance sheet, will allow us to further capitalize on growth opportunities and drive outsized returns in the years ahead. At this time, Pat and I would be happy to answer any questions. Operator? Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Our first question comes from Robin Farley with UBS. Please go ahead. Great, thanks. Just circling back to the comments you made on the increase in your liquidity. Can you talk about how M&A might fit into your plan? Thanks. Sure, Robin. Yeah, I think as we've always discussed around our total capital allocation, M&A is one of the levers that we look at. Obviously we're a company that has done some external acquisitions. We've also invested internally on organic growth. We do continue to look for tuck-in acquisitions that could make sense for us. I think as we've talked about in prior calls, we do have some white space in our domestic portfolio, primarily in that upscale extended stay world. We don't play yet in the upper upscale world, so there are some opportunities that are out there if the right acquisition opportunity came along. Similarly, we look internationally, you know, as we look for growth in markets that favor our types of brands and the franchising model. Those are the areas that, from an M&A perspective, we've historically looked at. It's something we'll continue to do. If the right opportunities come along that meet our litmus test, which is can I improve the return on investment for the franchisee, and can I grow the brand for the benefit of our shareholders? Those are the two key litmus tests we generally apply to any M&A opportunities that we look at. Okay, great. Thank you. One other question on conversions. You know, a lot of other hotel companies, that's been your bread and butter for a while, a lot of other companies focusing on that in this environment. I don't know if you have a way to quantify kind of what your market share of like all the conversions signed in 2021 was and kind of how that compares to 2019. I guess trying to get a sense of whether I assume, you know, the pie is getting larger, but is it also the market share a little more competitive for that? Thanks. Yeah, let me, I mean, historically in, up markets, our mix between, the conversion and new construction, deals that we do every year is about two-thirds, one-third. We do about two-thirds conversion, one-third new construction. During downturns, it generally shifts to more 80% conversions. What's really interesting and impressive, I think, for the health of our brands, Robin, is what happened last year is we had more of a normalized year. In 2020, we shifted to more of an 80% conversion, 20% new construction. In 2021, we're back to that two-thirds conversion, one-third new construction, which is a really healthy place for us to be given the brands that we have. Regarding are we getting our fair share of them, I would say yes. I mean, I think if I look at the quality of the conversions that we're bringing in, you know, as we mentioned in our remarks. The entries or new entries into the system versus the exits was a 2x multiple. So, you know, the revenue intensity was twice of what exited. You know, when you look at what we brought in versus what exited. Again, that's a lot of that is driven by highly profitable conversions. So we're bringing in the right conversions. I don't know from the standpoint of understanding the total market share of conversions that are out there. I guess somebody would have to go and do that analysis. Yeah. Robin, the only thing I would add is when you take a look at the contracts for both full year and even in quarter four, we feel very optimistic just about the growth that we're seeing on the conversion side of the house. You know, broadly speaking, our contracts were up almost 25%, both for the broader portfolio as well as your conversions element. As the market continues to expand, we continue to capture more than our fair share, frankly, especially when you look at the domestic market. The Comfort family, you know, alone, we had a higher number of conversion openings in 2021 than we've had in the last eight years. You know, that's dating back to 2013. When you take a look at our segments, midscale, upper midscale in particular, where we see a lot of that conversion activity, we continue to take, you know, tremendous share. You're continuing to see, you know, those 25% growth rates versus last year. We feel very good about the prospects in the future as well. Some of that conversion activity that you're probably hearing about too, a lot of that's in the upscale space, if you think about soft brands, et cetera. And we're continuing to see pretty significant momentum with our upscale conversion brand, you know, Ascend as well. Feeling very good about where the company's positioned. Okay, great. Thank you very much. Thank you. Our next question comes from Thomas Allen with Morgan Stanley. Please go ahead. Thank you. Can you help us think about the net unit growth for 2022 and thereafter? Thank you. Sure. When, Thomas, I think the best way to think about it is that revenue-intensive unit growth. What we talked about is if you exclude those AMResorts terminations as well as the strategic terminations, we grew that revenue-intensive unit growth, you know, just under 2%. What I would say is in 2022, we expect to see that revenue-intensive unit growth trend continue. I think what gives us even more optimism is it's the point that Pat made in the previous question, which was the units coming into the system are two times as revenue-intensive as those units exiting the system. When you extrapolate that to what our historical unit growth looks like, it's more like a 3%-4% unit growth that we're seeing today. You're basically saying that next year, your revenue-intensive units are gonna grow at 2x. We also expect to see that, you know, 2x multiplier, so to speak. We expect to see that actually increase in 2022. Again, looking at that, the contribution of revenue from those units, you're gonna be well within that historical 3%-4% range. Yeah, Thomas, I would just say that our unit growth is accretive. That's really what we're looking to do, is to add units that are more accretive from an earnings perspective over time, particularly in some of our brands that have critical mass. It's really about optimizing the market opportunity for that hotel and that specific market. If we have an opportunity to have a more revenue-intensive and royalty intense contributor to the brand and ultimately to the system, that's what we've been doing on a regular basis. It's what we did at the end of the fourth quarter with taking some strategic terminations, really because we see the opportunity for that market to drive a higher profitability hotel for us. That's just a continuing practice that we're gonna continue to do as we move forward. Helpful. Thank you both. Just in my follow-up, can you just help us think about initial franchise and relicensing fees, procurement services, and the owned segment profitability, as we think about 2022 versus 2021? You know, certain parts of those businesses are already above 2019 levels. I think certain still have catch-ups. Can you just help us think about, you know, each of those lines? Thank you. Yeah, Thomas, let me just start, and then Don can fill in some of the detail. I mean, I think broadly speaking, when we look at the both volume and the relicensing opportunities that we've had, you know, we had a pretty robust year from that perspective. Again, I think it speaks to the value proposition that we have been improving over the years. Our franchisees, when they come up on a relicensing opportunity where they sell their hotel to another franchisee, gives us the opportunity to kind of reset that relationship and do it in a way that is more beneficial to the shareholders. I think as the value prop has gotten better, we're able to sort of charge higher fees. We're seeing that in our numbers as well. It's been both a volume and then also a value per contract increase as we've looked at that world. I think on procurement, you know, a lot of that business is driven by occupancy. You know, as we said, you know, with the last seven months of 2021, we were back to 2019 RevPAR levels. It's really, you know, that's a building revenue line for us. Again, a lot of that is, you know, soaps and sheets and towels and the like that are really driven by how many guests you have in your hotels. Yeah, just, you know, putting a finer point just in terms of the data. When you look at, you know, the relicensing in particular, we were about twice the volume in 2021 that we saw in 2020. We're continuing to see those recovery trends, you know, flow through the relicensing line item. The one thing I would caution you is the relicensing are now amortized over the life of the contract. Essentially, they're straight line due to the new revenue recognition standard. When you model it out, you would wanna grow that basically with system growth, broadly speaking. Then on the procurement services side of the house, you know, I would say at a minimum- You would grow those in line with your royalty revenues as well. Pat mentioned obviously growing in line with occupancy rates. We feel very good about that. But we're continuing to grow our services that we provide, you know, our select vendors, et cetera. I think that there's frankly an opportunity to grow procurement services, at least in the short to midterm, even higher than your royalty revenue. Helpful. Thank you. Thank you. Our next question comes from David Katz with Jefferies. Please go ahead. Morning, everyone, or afternoon, everyone. Thanks for taking my questions. The discussion around revenue intensity is, you know, noteworthy. If we were to look at the upscale brands that you're adding, you know, albeit they're smaller, but you're, you know, adding to them, is there any math you can help us with around, you know, what each incremental Cambria or Ascend, you know, adds or should. I assume the intensity of those is quite a bit greater than the system overall. Yeah, David, that's absolutely right. I think we've shared this a couple years ago, and the ratios still hold pretty constant. When you look at an upper midscale brand like a Comfort, that brand alone is about 3 times as revenue-intensive as an economy segment product. When you look at something like a Cambria, you could be upwards of 10 or more times greater on a revenue intensity basis than economy. What we feel very good about too is an extended stay, even with your economy extended stay product like WoodSpring, because of the high royalty fee associated with it, as well as the higher room count, a WoodSpring product could be 3 times the revenue intensity of a more transient economy hotel as well. When you look at all those puts and takes, that's what we talked about, is it averages out today to about two times, you know, in terms of what's coming in versus what's churning, because most of that churn is happening in those economy products. When you take a look at the press release exhibits, you'll see, you know, Econo Lodge and Rodeway in particular is where you're seeing the biggest pressure. We do expect to see not only that two times continue, but we actually expect to see that two times increase as we continue to focus on this revenue intensive strategy. Just to be clear about, you know, the definition of the word intensity, does that mean, you know, that, you know, a Cambria hypothetically generates 10x the revenue? Yeah. We look at it more from a net present value. Sorry. Yeah. Dave, we look at it more from a net present value back to the company. It's a factor of the length of the contract, the effective royalty rate, and the royalties that are driven. Those lengths vary by brand. If you have a Cambria which has a higher room count and is in a higher RevPAR market and has a 20-year agreement, those are the factors that go into understanding what we believe the value of that contract is for our system. Got it. Thank you for that. If I can just ask one more. With respect to M&A, any boundaries you can sort of help us set in terms of size, and you know, whether you would be looking much more so upscale rather than, you know, economy level at this point? You know, how would you help us think about that? Yeah, I think, I mean, our balance sheet's in a very healthy position, so the size of the opportunity, given what I believe is out there, we don't see anything that's too large for us. You know, I think when we look at our strategy of moving in a more revenue-intensive fashion, looking for things that are in more what we categorize as those higher revenue intensive type of unit growth categories, that's where our strategic thoughts go as far as accretive M&A that would be beneficial to us in the long term. Understood. Thank you very much. Thank you. Our next question comes from Michael Bellisario with Baird. Please go ahead. Thanks. Good afternoon, everyone. Afternoon, Michael. I have a question kind of along the same lines, but I wanna focus on kind of the newer and higher end brands again, but on the deals that you're signing and opening. Can you help us understand the customer makeup and how that differs for the higher end hotels versus some of your more legacy brands? How does the franchisee and developer makeup differ for those hotels? Just kind of really trying to understand the overlap and potential synergy that exists there as you're moving up the ADR curve, so to speak. Yeah. I think, Michael, when we look at the brands that we've been growing, when you look at both the Ascend collection and Cambria, they fit nicely on top of our core upper midscale brands. We know our customers, when we've done research, are staying in that upscale select service product. There's a lot of overlap on that front. When you look at the extended stay opportunities that we've been growing with that customer segment as well is something that is currently, you know, in our current hotels today. In our economy segment, we do have people who are staying longer lengths of stay in our transient economy hotels. You know, with our Suburban brand, our WoodSpring brand, that's a very common customer that we already had in our customer set. When you look at the franchisee makeup, it's really interesting because there's almost a bit of a barbell situation going on, where our upscale investors or developers, which tend to be more institutional capital, are now investing in economy extended stay. That was always something that we had looked at when we were looking at the WoodSpring acquisition, was the ability to bring institutional capital into that brand and ultimately into the segment because it's now grown significantly. There's a nice synergy of our existing both upscale and economy extended stay developers. When you look at our sort of bread and butter developers in the midscale segment, we're starting to see them move into Cambria. We're starting to do more Cambria development with some of our larger Comfort Inn developers as well. I think in both the customer side and the developer side, we're leveraging existing customer bases to grow both of those brand segments. Got it. That's helpful. Just can you remind us where you guys are with your balance sheet investments on a net basis for Cambria? How much is left, and maybe where you earmark any of those remaining dollars, whether it's for Cambria or other brands going forward? Yeah, Michael, so broadly speaking, we have about $550 million of our investment out there. Obviously, we have authorization up to that $725 million. You know, when you break it down, you know, probably half of that or so is in those owned assets. We expect to continue to deploy a level of capital against the Cambria brand and growing the Cambria brand. Most of that in the future is coming in the form of just, you know, typical key money investments. So I think that's really critical. Broadly speaking, I think you could see some, Melanie, in growing in those strategic segments. If you think about, again, back to that revenue intensity story, if you look at it on just the value that will be derived by growing that portfolio further, we do expect to use our balance sheet from a key money perspective. You saw maybe slightly elevated key money from 2021 to 2022, which is to be expected just given the fact that we are in a recovery environment. It was only about a $6 million increase year-over-year, we would expect to see those trends continuing into the future. Thank you. Thank you. Our next question comes from Patrick Scholes with Truist. Please go ahead. Hi. Good afternoon, everyone. Afternoon, Patrick. You know, when I think about the hotels from AMResorts dropping out, I guess that was concurrent with the sale to Hyatt. You know, do you see that as a one-time thing, given that they probably in their franchise contract had the option to exit out, or, you know, could there be more, I guess, in a material amount down the road, if you could give some thought and color on that? Thank you. Yeah. No, Patrick, that was really a one-time event. I mean, those hotels joined the Ascend Collection literally a month before the pandemic hit, and then they were acquired in the fourth quarter of this year. So they never really were able to be much of a revenue contributor to us. And so the exit was really around, you know, being acquired by another hotel company. So I would think about it this way. We know there's an opportunity there to send our guests into more of an all-inclusive product. And there are other owners out there that it would make sense for us to work with in the future. So we do think there's an opportunity for us in probably the medium term here to find a similar type relationship going forward. Yeah, Patrick, one thing I would wanna add, just to clarify, broadly speaking, is when you look at the international unit growth as well, I mean, the reality is there's no AMRs left to terminate. We would expect that to be an opportunity to Pat's point. The international rooms growth in particular, that was all impacted by AMResorts. If you know, eliminate the terminations associated with AMResorts, which again, were one-time in nature, your rooms growth internationally would have actually been flat to slightly positive. I think that's a really important point that, you know, from a revenue perspective, was not generating a ton of revenue just given, again, the pandemic impacts, and we expect to see that to be an opportunity going forward. Okay. Another question, and apologies, I don't mean to dwell on the negative here. You had 41 underperforming assets leave the portfolio in the fourth quarter in 4Q. You know, what would you think of as a, you know, an ongoing termination rate we should think about or sort of a net percentage loss leaving the system, you know, every year? You know, was that 41, would you say that was unusual, or is that something we should sort of expect, you know, going forward? I think, Patrick, historically our termination rate's about 3%-4%. You know, we see a recovering market here. You know, we looked at the financial performance of those hotels and what they should be doing. You know, as I mentioned earlier in my remarks, the last 7 months of the year we were back at 2019 levels or above, so the owners were making money. So if they're A, not paying their fees or B, not serving their guests well, you know, we are gonna look at that. We saw it as an opportunity to probably get a little bit ahead of the game here and open up some markets because we are seeing that robust demand for the Quality Inn brand and for some of the economy brands. That's primarily where those 41 terms came out of. It was more of a let's do these terminations now, given we see the recovery of the marketplace and we see the opportunity here in those specific markets to maximize the profitability of our system. I think about the termination rate as you know probably continuing to be at that 3%-4% rate. We just took an opportunity at the end of the fourth quarter this year to get ahead of the game on future development in those markets. Okay. Thank you for the color. That's it. Thank you. Our next question comes from Daniel Adam with Loop Capital. Please go ahead. Hi, everyone. Thanks for squeezing me in. This might be a ridiculous question, actually, but the hope is that in 5 or 10 years, when investors read the transcript, it might seem a little bit less ridiculous. In any event, the question is. Just given your exposure to drive-to markets, have you at all considered what the eventual impact of self-driving vehicles might be, especially with respect to your core business traveler customer? Thanks. Hey, Dan, it's not a ridiculous question. It is something, you know, when we do our long-range planning and we think about things that could be a threat to our business. I mean, I've been writing the strategic plan for this company for about 17 years, and we always had in there, "Hey, there might be a pandemic." People would be like, "Yeah, yeah, that'll never happen." These things do happen, and we do look out for the long term. I think when we look at that phenomenon, it is a question of, is someone really gonna wanna sleep there, you know, in their car? You know, when you go to a hotel, you go for a variety of reasons. You want amenities like a shower. You know, I think when I look at our footprint across the country and we think about self-driving cars, is it really going to be a replacement for, you know, a hotel stay? There's reasons why people travel to markets. It's to be there as well. It's not just always to be the stop along the way. Our portfolio, if I look at our extended stay business, I look at our upscale business and I look at our upper mid-scale hotels, a lot of them are in the locations that people are going to. We talked about this during the pandemic, about how many of our hotels are sitting at a beach or sitting at a national park, at points of interest in the United States that people wanna travel to. We expect road trips, as we've said in the past, to continue to be a contributor. It is something we've thought through, but it is something that we don't see as a replacement to a hotel stay. You know, I can look back at Airbnb. Airbnb was launched the same year as the iPhone, so it has been around a long time. I think people have always said, "Well, is that gonna replace the hotel business?" It's an alternative version of accommodation, and it has not dampened demand for the hotel space. It is something we've looked at, but it is not something that I see as a replacement for a hotel stay. Okay, great. That's super helpful. Thank you. Sure. Again, if you'd like to ask a question, please press star then one at this time. Our next question comes from Dan Wasiolek with Morningstar. Please go ahead. Hi, guys. Thanks for taking the question. Two. The first one's just a clarification to an earlier question on 2022 unit growth. I thought in the response that I heard a 3%-4% potential range. Is that accurate, and is that kind of adjusted for the revenue intensity that you're talking about, or is that an actual unit figure? The second one is just durability of EBITDA margins kind of beyond this investment year. Were the 2021 EBITDA margins you saw kind of something that we can maybe see as we look out, you know, 2023 and beyond? Thanks. Thanks for the clarification and then I will certainly try to address it. From a unit perspective, what we talked about is the revenue-intensive unit growth. That's the portfolio less economy would grow at approximately 2% or just below 2%, which is where we were this year, in terms of that portfolio ex those one-time events on the strategic term side as well as the AMResorts. Broadly speaking, unit growth, we expect to approximate what happened in 2021. When we talk about the 3%-4%, that was really with the multiplier. What we talk about is each unit coming in is about 2 times as revenue-intensive, and that's from a royalty perspective as well. Not only an NPV perspective, but from a royalty perspective, 2 times as revenue-intensive. When you apply that multiplier on what's coming in versus what's exiting, it translates to what would be about a 3%-4% unit growth historically speaking for the company. And that 2x multiplier, we expect to see that actually increase in 2022 as well. Is that helpful? Yeah, it is, definitely. If you could just maybe, I guess, comment on the durability of EBITDA margins longer term. Sure. Yeah, I think, Dan, it's a great question because I think when we look at our, you know, plans for 2022 and beyond, we do expect a robust top line revenue. It's really a focus on the investment opportunity that we see in our business. You know, as we've mentioned, our strategy is working. We're bringing in more valuable units than we're terminating. Our, you know, margins are at a record level. Our effective royalty rate is at an effective record level. Our month of January was the best month of January we've ever had, so that's a record. We have a healthy balance sheet. We really have the opportunity right now to leverage these strengths and invest in our brands, in our franchise value proposition, and in our platform business. The things that we look to invest in are things that leverage our scale. They're things that we believe can, you know, really, grow to a significant amount of earnings. That margin is really something that we do look at as something that is an opportunity for us to maybe in 2022, you know, compress that somewhat in order to invest in long-term growth. I mean, that's. We're running the business here for the long-term growth expectations of our shareholders. Making those one-time or transitory investments. The way the world works today, a lot of that's on your income statement, so you do have a little bit of a margin compression. That is something that we are considering doing this year, given the opportunities that we have and the opportunity that we as a company have to play offense here, and really establish ourselves in maybe some new segments with some new customers. That's really the way we thought about it. Yeah. I mean, at the end of the day, the record margin's really a function of the quicker top line recovery coupled with some of those cost structure changes that we've talked about previously. In 2022, you would expect to see some costs returning to the business, right? You know, things like T&E, meetings and events, a higher level probably of marketing, et cetera. Some of these more run rate costs that frankly were paused or eliminated, you know, during the pandemic years. To Pat's point, I think in the short term, we're willing to invest for outsized long-term growth. In the long term, Dan, I think it's important, you know, just the function of the business model itself, you would expect to see margin, you know, expand in the longer term if you place the right bets, and we're very confident that we're continuing to place the right bets. Okay. Very helpful. Thank you. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Patrick Pacious for any closing remarks. Thank you, operator, and thanks everyone again today for your time. I hope you all stay safe and healthy, and we will talk to you all again in May. Have a great rest of your afternoon. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.