The previous year has been a strong year for Choice Hotels International, Inc., with the North Bethesda, Md.-based company reporting robust growth and announcing higher-than-anticipated growth of its brands across revenue-intense segments. In 2023, Choice saw a 1.4% rise in the number of hotels in its domestic, upscale, midscale and extended-stay brands. This was a banner year, Choice said in a statement, with the group completing the seamless and rapid integration of the Radisson Hotels Americas brands.
The growth of the Choice legacy brands accounted for roughly a 2% increase in the number of domestic properties within these revenue-intensive segments. Additionally, the number of hotels in Choice’s global portfolio improved by 2.6%.
The last year saw transformative growth, said Choice Hotels President and CEO Pat Pacious, adding that the value of the group’s brands across all market segments will be carried to the next level this year.
“We’re also laser-focused on driving Choice franchisees’ costs down and increasing their revenues, resulting in higher profitability and a greater ability to compete in a robust marketplace. We’re proud to have an industry-leading voluntary retention rate of 98%, which shows that our hotel owners and operators know the value of the Choice business delivery engine. In the year to come, we will leverage this engine to help drive the value of their businesses even higher,” said Pacious.
EXTENDED STAY
Choice opened 61 extended-stay hotels through 2023, a single-year record for Choice. Suburban Studios opened 25 properties, a single-year record for the brand, including its 100th property in Bloomington, Minn., in December.
WoodSpring Suites also set a new single-year record and opened 24 new hotels. Everhome Suites, Choice’s latest new construction extended stay brand, grew its pipeline to 66 properties, totaling 16 hotels under construction.
UPSCALE SEGMENT
Continuing its growth in this segment, Choice opened 19 hotels in its Ascend Hotel Collection, an international collection of independent resort, historic, and boutique hotels.
Choice also migrated the Radisson Americas hotels onto its central reservation system in July, less than a year since the acquisition, helping drive over an 8% YOY rise in RevPAR for the Radisson upscale brand.
Cambria Hotels’ portfolio increased to 74 properties, with nine new hotels opening throughout the year in markets like Nashville, Tenn.; Austin, Texas; and Burbank, Calif.
In 2024, Choice aims to expand developments under the Radisson Blu brand.
CORE BRANDS
The previous year saw Choice focusing on the growth of its core brands. Comfort opened 33 new properties, the highest in a single year since 2019, including launching the first new construction Rise & Shine prototype Comfort hotel in Mountain Grove, Mo. The new prototype features a contemporary look, efficient footprint and multifunctional spaces, enhanced furniture and fixtures.
The Quality Inn brand saw 35 openings and was awarded 64 franchise agreements. Choice also introduced the new design-forward Sleep Inn prototype, which includes additional wellness offerings, modern guestrooms, new breakfast areas, airy lobbies and dedicated outdoor spaces.
The Econo Lodge and Rodeway Inn brands also added more properties, which generated more revenue on average than properties that exited the brands. This highlighted Choice’s successful revenue-intense unit growth strategy for each brand.
INTEGRATION OF RADISSON AMERICAS
Choice completed the integration of the Radisson Hotels Americas business in July, less than a year after closing the transaction, driven by Choice’s strategic investments in its technology and its integration playbook.
The digital migration of the Radisson Americas brands resulted in considerable increases in total digital traffic, booked revenue and bookings against pre-migration Choice and Radisson Americas websites and apps combined.
YOY, from August till November 2023, digital bookings surged 26% for the legacy Radisson Americas brands, which included a 36% jump for the Country Inn & Suites brand.
The improved performance has been attracting new development commitments, Choice said. In December, Choice awarded 10 new Country Inn & Suites franchise agreements, bringing the total number of agreements to 2019 in 2023. This was the highest for the brand in one year since 2016.
Choice also introduced a refresh of Country Inn & Suites rooms with a contemporary and warm aesthetic, sophisticated finishes and subtle color accents.
GLOBAL EXPANSION
The last year was the most successful for Choice’s international development, as the company grew its global portfolio across several markets.
The company extended its master franchise agreement with Strawberry (previously known as Nordic Choice Hotels), entered into a distribution collaboration with Spanish hotel chain Sercotel, inked an agreement with Zenitude Hotel-Residences, which will double Choice’s unit presence in France (adding 33 hotels in 2024 and 2025) and acquired the franchise rights for City Edge Apartment Hotels in Australia.
Choice also fully integrated Radisson Americas hotels in the Caribbean, Canada and Latin America and is focused on driving the growth of the legacy Radisson Americas brands in those regions in 2024.
FUTURE GROWTH
Choice aims to continue capitalizing on its conversion capability, which helps the company move assets through the pipeline and offer higher value to new owners in any market condition.
In 2023, Choice awarded 133 franchise agreements, which also opened in the same year.
Choice aims to accelerate its growth and performance through the new year, with a global pipeline of 1,032 properties as of 2023.