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Choice Hotels
Choice Hotels

Hospitality / Hospitality and hotel franchising

At a Glance | Core Facts | Company Due Diligence | Industry Due Diligence | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web
Overview
Choice Hotels is a hotel franchising company that was founded in 1939 by seven Florida motel owners. It is headquartered in Rockville, Maryland and is one of the largest hotel chains in the world. Choice Hotels operates more than 7,000 hotels across 40 countries, including well-known brands such as Comfort Inn, Quality Inn, and Sleep Inn.
The company's mission is to provide "value, consistency, and service" to its guests by offering a range of affordable and comfortable lodging options. Choice Hotels has a diverse portfolio of brands that cater to different segments of travelers, from budget-conscious to luxury travelers. It also offers various reward programs such as Choice Privileges, which allows guests to earn points and redeem free nights at any Choice Hotels property.
Choice Hotels also emphasizes its commitment to sustainability and corporate responsibility. It has implemented eco-friendly practices such as energy-efficient lighting and water conservation programs in its properties. The company also supports various charitable organizations and initiatives, including the American Red Cross and the National Center for Missing and Exploited Children.
Overall, Choice Hotels aims to provide a reliable and enjoyable hotel experience for its guests while also making a positive impact on the environment and communities it operates in.
What is special about the company?
1. Broad Range of Brands: Choice Hotels owns and operates a diverse portfolio of brands, including economy, midscale, upscale, and extended stay hotels, providing a range of options for travelers.
2. Global Presence: With over 7,100 properties in more than 40 countries and territories, Choice Hotels has a strong global presence and is one of the largest lodging companies in the world.
3. Loyalty Program: Choice Privileges, the company's loyalty program, offers members exclusive benefits and rewards such as free nights, airline miles, and gift cards.
4. Franchise Business Model: Choice Hotels' franchise business model allows for rapid growth and expansion, as individual hotel owners can tap into the company's resources, support, and marketing efforts.
5. Focus on Technology: The company has invested heavily in technology, with initiatives such as mobile check-in and keyless room entry, making the booking and check-in process more convenient for guests.
6. Commitment to Sustainability: Choice Hotels is committed to sustainability and has implemented various initiatives to reduce its environmental impact, including energy efficiency programs, recycling efforts, and eco-friendly amenities in hotels.
7. Strong Corporate Culture: Choice Hotels promotes a positive corporate culture that values teamwork, diversity, and continuous learning, leading to high employee satisfaction and low turnover rates.
8. Industry Recognition: The company has received numerous awards and recognition from the hospitality industry, including being named a top hotel company by Forbes and one of the best places to work by the Human Rights Campaign Foundation.
9. Support for Communities: Through its philanthropic arm, Choice Hotels International Foundation, the company supports various charitable organizations and initiatives to improve the lives of those in need.
10. Resilience: Despite challenges faced by the hospitality industry, Choice Hotels has a proven track record of resilience and adaptability, consistently delivering strong financial results and shareholder value.
What the company's business model?
Choice Hotels is a hospitality company that owns and franchises hotels and resorts under several well-known brand names such as Comfort Inn, Quality Inn, Clarion, Sleep Inn, EconoLodge, and Cambria Hotels & Suites. The company operates mostly in the economy to mid-scale hotel segments, offering affordable accommodations to budget-conscious travelers.
Choice Hotels' business model is based on a franchise system, where independent hotel owners pay fees to the company in exchange for branding, marketing, and reservation services. This allows Choice Hotels to expand its reach and presence in the hotel industry without having to manage and invest in each property individually.
Additionally, Choice Hotels generates revenue through various distribution channels, including its own website, travel agencies, online travel agencies, and corporate agreements. The company also collects fees from franchisees for services such as reservations, training, and advertising.
Choice Hotels also focuses on building long-term relationships with loyal customers through its Choice Privileges rewards program. This program incentivizes customers to book directly with Choice Hotels and offers benefits such as free nights, room upgrades, and exclusive discounts.
Overall, Choice Hotels' business model relies on the combination of franchise fees, distribution channels, and customer loyalty to generate revenue and maintain its position as a leader in the hospitality industry.
Interesting facts about the company
1. Choice Hotels was founded in 1939 under the name Quality Courts United and originally consisted of seven motels located in the southern United States.
2. The company changed its name to Quality Inns International in 1972 and became a franchising operation in 1976.
3. In 1990, Quality Inns International launched the first economy hotel brand, Comfort Inn, which was intended to cater to budget-conscious travelers.
4. In 1996, the company changed its name to Choice Hotels International to better reflect its expanded range of brands, which now included Comfort Inn, Quality Inn, Sleep Inn, Clarion Hotels, and Rodeway Inn.
5. Today, Choice Hotels is the second-largest hotel franchisor in the world, with over 7,000 properties in more than 40 countries and territories.
6. Choice Hotels’ loyalty program, Choice Privileges, has over 25 million members and was recognized as the Best Hotel Rewards Program by USA Today’s 10Best Readers’ Choice Awards in 2019.
7. Choice Hotels has a long history of supporting and advocating for diversity and inclusion, with initiatives such as the Choice Hotels Diversity Executive Council and partnerships with organizations like the National Alliance for Hispanic Health and the National Urban League.
8. In 2020, Choice Hotels announced its Commitment to Clean initiative, which includes comprehensive cleaning and safety protocols to enhance the health and safety of guests during the COVID-19 pandemic.
9. Choice Hotels has earned numerous awards and accolades, including being named one of the World’s Most Admired Companies by Fortune Magazine and one of the Best Workplaces for Diversity by Great Place to Work®.
10. The company is committed to sustainability and has implemented sustainable practices in its properties, including energy-efficient lighting, recycling programs, and eco-friendly cleaning products. In 2020, Choice Hotels was recognized as a Green Key Global Certified Company.
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