in addition , our operating results can also be improved through our company-wide efforts related to improving property level performance . the company currently estimates , based on its current domestic portfolio of hotels under franchise , that a 1 % change in revenue per available room ( `` revpar `` ) or rooms under franchise would increase or decrease royalty revenues by approximately $ 3.6 million and a 1 basis point change in the company 's effective royalty rate would increase or decrease annual domestic royalties by approximately $ 0.8 million . in addition to these revenues , we also collect marketing and reservation system fees to support centralized marketing and reservation activities for the franchise system . the principal factors that affect the company 's results are : the number and relative mix of franchised hotel rooms in the various hotel lodging price categories ; growth in the number of hotel rooms under franchise ; occupancy and room rates achieved by the hotels under franchise ; the effective royalty rate achieved ; the level of franchise sales and relicensing activity ; and our ability to manage costs . the number of rooms at franchised properties and occupancy and room rates at those properties significantly affect the company 's results because our fees are based upon room revenues or the number of rooms at franchised hotels . the key industry standard for measuring hotel-operating performance is revpar , which is calculated by multiplying the percentage of occupied rooms by the average daily room rate realized . our variable overhead costs associated with franchise system growth of our established brands have historically been less than incremental royalty fees generated from new franchises . accordingly , continued growth of our franchise business should enable us to realize benefits from the operating leverage in place and improve operating results . we are required by our franchise agreements to use the marketing and reservation system fees we collect for system-wide marketing and reservation activities . these expenditures , which include advertising costs and costs to maintain our central reservations and property management systems , help to enhance awareness and consumer preference for our brands and deliver guests to our franchisees . greater awareness and preference promotes long-term growth in business delivery to our franchisees and increases the desirability of our brands to hotel owners and developers , which ultimately increases franchise fees earned by the company . our company articulates its mission as a commitment to our franchisees ' profitability by providing our franchisees with hotel franchises that strive to generate the highest return on investment of any hotel franchise . we have developed an operating system dedicated to our franchisees ' success that focuses on delivering guests to our franchised hotels and reducing costs for our hotel owners . we believe that executing our strategic priorities creates value for our shareholders . our company focuses on two key goals : profitable growth . our success is dependent on improving the performance of our hotels , increasing our system size by selling additional hotel franchises , effective royalty rate improvement and maintaining a disciplined cost structure . we attempt to improve our franchisees ' revenues and overall profitability by providing a variety of products and services designed to increase business delivery to and or reduce operating and development costs for our franchisees . these products and services include national marketing campaigns , maintaining a guest loyalty program , a central reservation system , property and yield management programs and systems , revenue management services , quality assurance standards and qualified vendor 38 relationships . we believe that healthy brands , which deliver a compelling return on investment for franchisees , will enable us to sell additional hotel franchises and raise royalty rates . we have multiple brands that meet the needs of many types of guests , and can be developed at various price points and applied to both new and existing hotels . this ensures that we have brands suitable for creating growth in a variety of market conditions . improving the performance of the hotels under franchise , growing the system through additional franchise sales and improving franchise agreement pricing while maintaining a disciplined cost structure are the keys to profitable growth . maximizing financial returns and creating value for shareholders . our capital allocation decisions , including capital structure and uses of capital , are intended to maximize our return on invested capital and create value for our shareholders . we believe our strong and predictable cash flows create a strong financial position that provides us a competitive advantage . we maintain a capital structure that generates high financial returns and use our excess cash flow to provide returns to our shareholders primarily through share repurchases , dividends or investing in growth opportunities . historically , we have returned value to our shareholders through share repurchases and dividends . in 1998 , we instituted a share repurchase program which has generated substantial value for our shareholders . since the program 's inception through december 31 , 2018 , we have repurchased 50.5 million shares ( including 33.0 million prior to the two-for-one stock split effected in october 2005 ) of common stock at a total cost of $ 1.4 billion . considering the effect of the two-for-one stock split , the company has repurchased 83.5 million shares at an average price of $ 16.74 per share . the company purchased 1.8 million shares of common stock under the share repurchase program at a total cost of $ 141.2 million for the year ended december 31 , 2018 . at december 31 , 2018 , we had approximately 2.2 million shares remaining under the current share repurchase authorization . we currently believe that our cash flows from operations will support our ability to complete the current repurchase authorization . upon completion of the current authorization , our board of directors will evaluate the advisability of additional share repurchases . story_separator_special_tag operating income increased $ 102.6 million primarily due to a $ 40.9 million or 10 % increase in the company 's hotel franchising revenues , a $ 70.9 million change in the net surplus/ deficit generated from marketing and reservation system activities , and a $ 2.0 million increase in non-hotel franchising revenues , partially offset by a $ 11.1 million increase in sg & a expenses . the change in the net surplus/ deficit generated from marketing and reservation system activities results from a change in the company 's expiration policy for points outstanding under the choice privileges loyalty membership program , resulting in an increase to the corresponding liabilities and charge to the marketing and reservation system revenues . hotel franchising revenues hotel franchising revenues were $ 430.9 million for the year ended december 31 , 2017 compared to $ 390.0 million for the year ended december 31 , 2016 , a $ 40.9 million or 10 % increase . the increase in hotel franchising revenues is primarily due to a $ 24.0 million or 8 % increase in royalty revenues , a $ 4.6 million or 13 % increase in procurement services revenues , $ 3.3 million or 17 % increase in initial franchise and relicensing fees , and a $ 8.9 million or 53 % increase in non-compliance , contract termination fees and other franchise revenues . 46 royalty fees domestic royalty fees for the year ended december 31 , 2017 increased $ 22.5 million to $ 320.2 million from $ 297.7 million in 2016 , an increase of 8 % . the increase in domestic royalties reflect a 2.5 % increase in domestic revpar , a 2.1 % increase in the number of domestic franchised hotel rooms , and an increase in the effective royalty rate . system-wide revpar increased due to a 1.7 % increase in average daily rates accompanied by a 50 basis point increase in occupancy rates . the company 's effective royalty rate of the domestic hotel system increased from 4.41 % for the year ended december 31 , 2016 to 4.60 % for the year ended december 31 , 2017 . the increase in the effective royalty rate is attributable to improved royalty rate pricing on recently executed domestic franchise agreements as well as annual contractual royalty rate increases contained in existing franchise agreements . a summary of the company 's domestic franchised hotels operating information for the years ending december 31 , 2017 and 2016 is as follows : replace_table_token_17_th the number of total domestic rooms on-line increased by 2.1 % to 413,015 rooms as of december 31 , 2017 from 404,498 as of december 31 , 2016 . the total number of domestic hotels on-line increased by 2.6 % to 5,501 as of december 31 , 2017 , from 5,362 as of december 31 , 2016 . our unit growth has outpaced the growth in our rooms primarily due to the company 's multi-year strategy to rejuvenate the comfort family of brands by terminating under-performing hotels that no longer meet the comfort brand standards . hotels terminated from the comfort brand family may be repositioned to a more suitable brand within the company 's family of brands or exit our franchise system . as a result of this strategy our unit growth has been driven primarily by brands with lower average room counts than the comfort family of brands . 47 a summary of the domestic hotels and available rooms at december 31 , 2017 and 2016 by brand is as follows : replace_table_token_18_th international royalty fees increased $ 1.6 million from $ 20.0 million in the year ended december 31 , 2016 to $ 21.6 million for the same period in 2017 primarily due to an increase in the number of rooms franchised and improvements in revpar and effective royalty rates . international rooms increased by 934 to 112,558 as of december 31 , 2017 from 111,624 as of december 31 , 2016 . the total number of hotels decreased from 1,152 at december 31 , 2016 to 1,126 at december 31 , 2017 . international rooms grew at a faster pace than the number of hotels due to a focus on new entrants with higher per room counts than currently in the company 's international franchised hotel portfolio and the termination of hotels with lower room counts . initial franchise and relicensing fees initial franchise fees are fees paid to the company when a franchisee executes a franchise agreement ; relicensing fees include fees charged to new owners of a franchised property whenever an ownership change occurs and the property remains in the franchise system , as well as fees required to renew existing franchise agreements . during 2017 , the company awarded 704 domestic franchise agreements representing 53,042 rooms compared to 645 franchising agreements representing 50,336 rooms for 2016. domestic franchise agreements executed for new construction hotels totaled 247 representing 18,014 rooms during the year ended december 31 , 2017 compared to 201 contracts representing 15,566 rooms for the year ended december 31 , 2016 . conversion hotel executed franchise agreements totaled 457 representing 35,028 rooms for the year ended december 31 , 2017 compared to 444 agreements representing 34,770 rooms for the year ended december 31 , 2016 . the company executed 439 domestic relicensing contracts during the year ended december 31 , 2017 compared to 412 executed during the year ended december 31 , 2016 . the company executed 26 domestic renewals agreements during the year ended december 31 , 2017 compared to 42 executed during the year ended december 31 , 2016 . initial franchise and relicensing fees are generally collected at the time the franchise agreement is executed . however , the recognition of revenue is deferred until the hotel is open or the franchise agreement is terminated . upon hotel opening , revenue is recognized ratably as services are provided over the enforceable period of the franchise license agreement .

liquidity and capital resources : historically , the company has generated significant cash flows from operations . since our business has not historically required significant reinvestment of capital , we typically utilize cash in ways that management believes provide the greatest returns to our shareholders which include share repurchases and dividends . however , we may determine to utilize cash for acquisitions and other investments in the future . we believe the company 's cash flow from operations and available financing capacity is sufficient to meet the expected future operating , investing and financing needs of the business . refer to md & a heading `` liquidity and capital resources '' for additional analysis . inflation : inflation has been moderate in recent years and has not had a significant impact on our business . non-gaap financial statement measurements the company utilizes certain measures which do not conform to generally accepted accounting principles accepted in the united states ( `` gaap '' ) when analyzing and discussing its results with the investment community . this information should not be considered as an alternative to any measure of performance as promulgated under gaap . the company 's calculation of these measurements may be different from the calculations used by other companies and therefore , comparability may be limited . we have included a reconciliation of these measures to the comparable gaap measurement below as well as our reasons for reporting these non-gaap measures . hotel franchising revenues : the company utilizes franchising revenues , which exclude revenues from marketing and reservation system activities , saas technology solutions divisions , vacation rental activities , and revenue generated from the ownership of an office building that is leased to a third-party , rather than total revenues when analyzing the performance of the business . marketing and reservation activities are excluded from hotel franchising revenues since the company is contractually required by its franchise agreements to utilize the fees collected specifically for franchisee marketing and reservation activities .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources : historically , the company has generated significant cash flows from operations . since our business has not historically required significant reinvestment of capital , we typically utilize cash in ways that management believes provide the greatest returns to our shareholders which include share repurchases and dividends . however , we may determine to utilize cash for acquisitions and other investments in the future . we believe the company 's cash flow from operations and available financing capacity is sufficient to meet the expected future operating , investing and financing needs of the business . refer to md & a heading `` liquidity and capital resources '' for additional analysis . inflation : inflation has been moderate in recent years and has not had a significant impact on our business . non-gaap financial statement measurements the company utilizes certain measures which do not conform to generally accepted accounting principles accepted in the united states ( `` gaap '' ) when analyzing and discussing its results with the investment community . this information should not be considered as an alternative to any measure of performance as promulgated under gaap . the company 's calculation of these measurements may be different from the calculations used by other companies and therefore , comparability may be limited . we have included a reconciliation of these measures to the comparable gaap measurement below as well as our reasons for reporting these non-gaap measures . hotel franchising revenues : the company utilizes franchising revenues , which exclude revenues from marketing and reservation system activities , saas technology solutions divisions , vacation rental activities , and revenue generated from the ownership of an office building that is leased to a third-party , rather than total revenues when analyzing the performance of the business . marketing and reservation activities are excluded from hotel franchising revenues since the company is contractually required by its franchise agreements to utilize the fees collected specifically for franchisee marketing and reservation activities .
```    
 Suspicious Activity Report : in addition , our operating results can also be improved through our company-wide efforts related to improving property level performance . the company currently estimates , based on its current domestic portfolio of hotels under franchise , that a 1 % change in revenue per available room ( `` revpar `` ) or rooms under franchise would increase or decrease royalty revenues by approximately $ 3.6 million and a 1 basis point change in the company 's effective royalty rate would increase or decrease annual domestic royalties by approximately $ 0.8 million . in addition to these revenues , we also collect marketing and reservation system fees to support centralized marketing and reservation activities for the franchise system . the principal factors that affect the company 's results are : the number and relative mix of franchised hotel rooms in the various hotel lodging price categories ; growth in the number of hotel rooms under franchise ; occupancy and room rates achieved by the hotels under franchise ; the effective royalty rate achieved ; the level of franchise sales and relicensing activity ; and our ability to manage costs . the number of rooms at franchised properties and occupancy and room rates at those properties significantly affect the company 's results because our fees are based upon room revenues or the number of rooms at franchised hotels . the key industry standard for measuring hotel-operating performance is revpar , which is calculated by multiplying the percentage of occupied rooms by the average daily room rate realized . our variable overhead costs associated with franchise system growth of our established brands have historically been less than incremental royalty fees generated from new franchises . accordingly , continued growth of our franchise business should enable us to realize benefits from the operating leverage in place and improve operating results . we are required by our franchise agreements to use the marketing and reservation system fees we collect for system-wide marketing and reservation activities . these expenditures , which include advertising costs and costs to maintain our central reservations and property management systems , help to enhance awareness and consumer preference for our brands and deliver guests to our franchisees . greater awareness and preference promotes long-term growth in business delivery to our franchisees and increases the desirability of our brands to hotel owners and developers , which ultimately increases franchise fees earned by the company . our company articulates its mission as a commitment to our franchisees ' profitability by providing our franchisees with hotel franchises that strive to generate the highest return on investment of any hotel franchise . we have developed an operating system dedicated to our franchisees ' success that focuses on delivering guests to our franchised hotels and reducing costs for our hotel owners . we believe that executing our strategic priorities creates value for our shareholders . our company focuses on two key goals : profitable growth . our success is dependent on improving the performance of our hotels , increasing our system size by selling additional hotel franchises , effective royalty rate improvement and maintaining a disciplined cost structure . we attempt to improve our franchisees ' revenues and overall profitability by providing a variety of products and services designed to increase business delivery to and or reduce operating and development costs for our franchisees . these products and services include national marketing campaigns , maintaining a guest loyalty program , a central reservation system , property and yield management programs and systems , revenue management services , quality assurance standards and qualified vendor 38 relationships . we believe that healthy brands , which deliver a compelling return on investment for franchisees , will enable us to sell additional hotel franchises and raise royalty rates . we have multiple brands that meet the needs of many types of guests , and can be developed at various price points and applied to both new and existing hotels . this ensures that we have brands suitable for creating growth in a variety of market conditions . improving the performance of the hotels under franchise , growing the system through additional franchise sales and improving franchise agreement pricing while maintaining a disciplined cost structure are the keys to profitable growth . maximizing financial returns and creating value for shareholders . our capital allocation decisions , including capital structure and uses of capital , are intended to maximize our return on invested capital and create value for our shareholders . we believe our strong and predictable cash flows create a strong financial position that provides us a competitive advantage . we maintain a capital structure that generates high financial returns and use our excess cash flow to provide returns to our shareholders primarily through share repurchases , dividends or investing in growth opportunities . historically , we have returned value to our shareholders through share repurchases and dividends . in 1998 , we instituted a share repurchase program which has generated substantial value for our shareholders . since the program 's inception through december 31 , 2018 , we have repurchased 50.5 million shares ( including 33.0 million prior to the two-for-one stock split effected in october 2005 ) of common stock at a total cost of $ 1.4 billion . considering the effect of the two-for-one stock split , the company has repurchased 83.5 million shares at an average price of $ 16.74 per share . the company purchased 1.8 million shares of common stock under the share repurchase program at a total cost of $ 141.2 million for the year ended december 31 , 2018 . at december 31 , 2018 , we had approximately 2.2 million shares remaining under the current share repurchase authorization . we currently believe that our cash flows from operations will support our ability to complete the current repurchase authorization . upon completion of the current authorization , our board of directors will evaluate the advisability of additional share repurchases . story_separator_special_tag operating income increased $ 102.6 million primarily due to a $ 40.9 million or 10 % increase in the company 's hotel franchising revenues , a $ 70.9 million change in the net surplus/ deficit generated from marketing and reservation system activities , and a $ 2.0 million increase in non-hotel franchising revenues , partially offset by a $ 11.1 million increase in sg & a expenses . the change in the net surplus/ deficit generated from marketing and reservation system activities results from a change in the company 's expiration policy for points outstanding under the choice privileges loyalty membership program , resulting in an increase to the corresponding liabilities and charge to the marketing and reservation system revenues . hotel franchising revenues hotel franchising revenues were $ 430.9 million for the year ended december 31 , 2017 compared to $ 390.0 million for the year ended december 31 , 2016 , a $ 40.9 million or 10 % increase . the increase in hotel franchising revenues is primarily due to a $ 24.0 million or 8 % increase in royalty revenues , a $ 4.6 million or 13 % increase in procurement services revenues , $ 3.3 million or 17 % increase in initial franchise and relicensing fees , and a $ 8.9 million or 53 % increase in non-compliance , contract termination fees and other franchise revenues . 46 royalty fees domestic royalty fees for the year ended december 31 , 2017 increased $ 22.5 million to $ 320.2 million from $ 297.7 million in 2016 , an increase of 8 % . the increase in domestic royalties reflect a 2.5 % increase in domestic revpar , a 2.1 % increase in the number of domestic franchised hotel rooms , and an increase in the effective royalty rate . system-wide revpar increased due to a 1.7 % increase in average daily rates accompanied by a 50 basis point increase in occupancy rates . the company 's effective royalty rate of the domestic hotel system increased from 4.41 % for the year ended december 31 , 2016 to 4.60 % for the year ended december 31 , 2017 . the increase in the effective royalty rate is attributable to improved royalty rate pricing on recently executed domestic franchise agreements as well as annual contractual royalty rate increases contained in existing franchise agreements . a summary of the company 's domestic franchised hotels operating information for the years ending december 31 , 2017 and 2016 is as follows : replace_table_token_17_th the number of total domestic rooms on-line increased by 2.1 % to 413,015 rooms as of december 31 , 2017 from 404,498 as of december 31 , 2016 . the total number of domestic hotels on-line increased by 2.6 % to 5,501 as of december 31 , 2017 , from 5,362 as of december 31 , 2016 . our unit growth has outpaced the growth in our rooms primarily due to the company 's multi-year strategy to rejuvenate the comfort family of brands by terminating under-performing hotels that no longer meet the comfort brand standards . hotels terminated from the comfort brand family may be repositioned to a more suitable brand within the company 's family of brands or exit our franchise system . as a result of this strategy our unit growth has been driven primarily by brands with lower average room counts than the comfort family of brands . 47 a summary of the domestic hotels and available rooms at december 31 , 2017 and 2016 by brand is as follows : replace_table_token_18_th international royalty fees increased $ 1.6 million from $ 20.0 million in the year ended december 31 , 2016 to $ 21.6 million for the same period in 2017 primarily due to an increase in the number of rooms franchised and improvements in revpar and effective royalty rates . international rooms increased by 934 to 112,558 as of december 31 , 2017 from 111,624 as of december 31 , 2016 . the total number of hotels decreased from 1,152 at december 31 , 2016 to 1,126 at december 31 , 2017 . international rooms grew at a faster pace than the number of hotels due to a focus on new entrants with higher per room counts than currently in the company 's international franchised hotel portfolio and the termination of hotels with lower room counts . initial franchise and relicensing fees initial franchise fees are fees paid to the company when a franchisee executes a franchise agreement ; relicensing fees include fees charged to new owners of a franchised property whenever an ownership change occurs and the property remains in the franchise system , as well as fees required to renew existing franchise agreements . during 2017 , the company awarded 704 domestic franchise agreements representing 53,042 rooms compared to 645 franchising agreements representing 50,336 rooms for 2016. domestic franchise agreements executed for new construction hotels totaled 247 representing 18,014 rooms during the year ended december 31 , 2017 compared to 201 contracts representing 15,566 rooms for the year ended december 31 , 2016 . conversion hotel executed franchise agreements totaled 457 representing 35,028 rooms for the year ended december 31 , 2017 compared to 444 agreements representing 34,770 rooms for the year ended december 31 , 2016 . the company executed 439 domestic relicensing contracts during the year ended december 31 , 2017 compared to 412 executed during the year ended december 31 , 2016 . the company executed 26 domestic renewals agreements during the year ended december 31 , 2017 compared to 42 executed during the year ended december 31 , 2016 . initial franchise and relicensing fees are generally collected at the time the franchise agreement is executed . however , the recognition of revenue is deferred until the hotel is open or the franchise agreement is terminated . upon hotel opening , revenue is recognized ratably as services are provided over the enforceable period of the franchise license agreement .

