Choice Hotels Launches Franchise Development Incentive
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Choice Hotels Launches Franchise Development Incentive
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2010-08-24
Choice Hotels International Launches Limited-Time Franchise Development Incentive for Quality, Clarion and Econo Lodge Brands
Opportunity to Benefit from Discounted Application Fees, No Royalty Fees and Cash Back Upon Opening
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.
Qualified owners that convert a property to the Econo Lodge brand by December 31, 2010 will receive a $10,000 discount off the application fee, which reduces the fee to $15,000 instead of the normal fee of $25,000. Hotels that are open for operation by December will receive up to $15,000 back at opening and no royalty fees (normally 4.5% of the preceding month’s gross room revenues) for the first 18 months of operations. If the property opens in 2011, owners will receive up to $15,000 at opening and 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.”
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