News for the Hospitality Executive
Choice Hotels Offers Significant Incentives for Hotel
Owners Interested in Converting
an Existing Hotel to the Quality, Clarion or Econo Lodge Brand
Incentives Include Discounted
Application Fees, No Royalty Fees
and Cash Back Upon Opening
Silver Spring, Md. (August 23, 2010) — In the face of a continuing challenging economic environment and with access to credit a significant barrier to hotel ownership, Choice Hotels International, Inc. (NYSE: CHH) today announced that it has launched a limited-time offer for hotel developers interested in converting an existing hotel to the company’s Quality, Clarion or Econo Lodge brand. The incentive is valid for qualified domestic franchise agreements executed through December 31, 2010.* The development incentive is targeted at hoteliers who want to reflag and revitalize with a Choice-brand product.
“In addition to this limited-time incentive, prospective Choice Hotels franchisees benefit from the power of our robust global reservations system, which delivered over $1.7 billion in system-wide gross room revenue in 2009,” said David Pepper, senior vice president, global development, Choice Hotels International. Choice Hotels drives brand awareness through nationwide marketing and promotions programs and supports its properties through exceptional training and support services and an unyielding commitment to helping enhance owners’ efficiency and potential return on investment. “In spite of the current environment, Choice Hotels continues to invest aggressively in a range of programs designed to position its franchisees for higher RevPAR, stronger long-term guest loyalty and improved performance.”
Qualified owners that convert a property to the Quality or Clarion brand by December 31, will receive a $10,000 discount off the application fee, which reduces the fee to $25,000 instead of the normal fee of $35,000. Hotels that are open for operation by December 31, 2010 will receive up to $35,000 back at opening and no royalty fees (normally 4.65% of the preceding month’s gross room revenues) up to the first 18 months of operations. If the property opens in 2011, owners will receive up to $25,000 at opening and pay no royalty fees for up to the first 12 months of operation.“This limited-time incentive meets our longstanding commitment to working collaboratively with the hotel development community, helping small business owners thrive in challenging times by providing maximum value by helping to defer or reduce certain up-front costs, thereby allowing them to affiliate with a powerful franchisor in Choice Hotels,” added Pepper. “The Quality, Clarion and Econo Lodge brands represent strong conversion opportunities in the mid-scale and economy segments — with one of the world’s largest, most well-respected lodging franchisors.”
For more information on this unique, limited-time offer, call 1.866.844.2293
About Choice Hotels
Choice Hotels International, Inc. franchises more than 6,000 hotels, representing more than 490,000 rooms, in the United States and more than 35 other countries and territories. As of June 30, 2010, more than 580 hotels are under construction, awaiting conversion or approved for development in the United States, representing more than 47,000 rooms, and approximately 100 hotels, representing approximately 8,700 rooms, are under construction, awaiting conversion or approved for development in 20 other countries and territories. The company's Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands serve guests worldwide. In addition, via its Ascend Collection membership program, travelers in the United States, Canada and the Caribbean have upscale lodging options at historic, boutique and unique hotels. Additional corporate information may be found on the Choice Hotels International, Inc. Web site, which may be accessed at www.choicehotels.com.
*Qualified franchisees that convert a non-Choice brand U.S. hotel to
Quality, Clarion, or Econo Lodge by signing a franchise agreement and incentive
addendum between 7/31 and 12/31/10 receive $10,000 off the application
fee. Cash back varies from $0-35,000 based on hotel brand and
opening date, and is subject to a 3-year forgivable promissory note at
an annual interest rate of prime plus 2%. No royalty fees varies
from 0-18 months based on opening date and subject to franchise compliance.
2010 Choice Hotels International, Inc. All rights reserved.
|Also See:||To Stimulate Brand Growth Econo Lodge Offering Up to $25,000 in Incentives for Conversion Properties / Aug 2003|
|Choice Offers Development Incentive for Conversions to Quality Brand; Up to $85,000 in Savings for Conversion Properties / Aug 2002|