Patrick Pacious, president and CEO of the Rockville, Maryland-based franchisor, said 2017 marked the company’s strongest year for development since 2007, with a Choice-branded hotel opening nearly every day. More than 700 franchise agreements were awarded last year, and as of February 1, 1,000-plus hotels were at some stage of development. At the moment, Choice Hotels has more than 6,800 hotel franchises representing more than 500,000 rooms.
Contributed by Megan Rowe
Strong growth in the upscale segment, a promising extended-stay acquisition and the ongoing makeover of its flagship brand were among highlights at the 64th annual Choice Hotels International convention. More than 5,000 owners, general managers and staff gathered in Las Vegas for the event.
Within the U.S., Pacious said Choice flags remain underrepresented in certain geographic regions, particularly the West Coast. He added that additional brand acquisitions remain a possibility to round out the company’s stable—particularly in segments where Choice doesn’t have a presence, such as upscale extended stay, upscale full-service and upper upscale. A priority for any acquisition candidate, he said, is how the company can improve the return to owners of those hotels.
The Cambria brand saw the biggest percentage jump, with 10 new hotels added last year, bringing the total to 42 either open or in the pipeline. By focusing on a presence in key urban markets, “we really have changed the trajectory of that brand,” Pacious said. The Ascend Hotel Collection soft brand, meanwhile, added 56 new locations, reaching the 200-property milestone, with 50 more on track. Between growth in the two brands, “we have arrived” in the upscale segment, Pacious said, defying naysayers who questioned the company’s ability to succeed in this category.
The Comfort brand, several years into its “Move to Modern” revitalization campaign, picked up 58 new franchises last year; of the 300 now in the pipeline, Pacious said nearly 80% are new construction.
Choice also unveiled a new logo for Comfort based on consumer research and discussions with its owner group. New signage designed to underscore the updated look of the modernized properties, will be rolled out as properties complete their improvement projects, with incentives for owners who complete the process earliest.
Anne Smith, vice president of brand management and design, called the new look “a beacon for the new Comfort… More than a change of symbol, it’s a symbol of change.” Some 600 subpar hotels were dropped from the system as part of the phased reinvention of the brand, which now stands at 1,800 properties. Between Choice and individual franchisees, some $2.5 billion will have been invested in updating Comfort by the end of 2019.
The latest addition to the Choice portfolio, WoodSpring Suites, added nearly 240 hotels to Choice’s extended-stay presence. When combined with the existing MainStay and Suburban extended-stay brands, the company now operates in more than 350 locations.
Choice’s other brands — Clarion, Quality, Sleep Inns and Rodeway — also experienced healthy gains last year.
Choice opened properties in eight new countries last year, increasing its presence to 40 countries. A recently announced strategic alliance with Sercotel Hotels, a hotel management and real estate company based in Spain, is expected to fuel expansion into those markets as well.