Choice Hotels' singular vision: franchisee profitability

Hotel & Motel Management, Feb 16, 2004

In good economic times and bad, in wartime and in peacetime, during peak travel periods and during travel market downturns, one issue is first and foremost for hotel owners--profitability.

At worldwide lodging franchisor Choice Hotels International, President and CEO Chuck Ledsinger has established a vision for the company that is directly in line with hoteliers' focus on profitability. Quite simply, Choice Hotels' vision is to generate the highest return on investment of any hotel franchise.

"Every action we take, every initiative we launch is measured against one overriding objective--franchisee profitability," Ledsinger said.

Indeed, this singular vision has been the driving factor in elevating Choice Hotels' eight brand names--Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge and Rodeway Inn, as well as its newest Clarion Collection brand extension--to become some of the most widely recognized in lodging today. "Each of our brands enjoys a distinct, firmly established image in travelers' minds," Ledsinger said. "With more than 5,000 properties open or under development in 43 nations, and with more than $50 million spent annually to market our brand names to travelers, we are constantly and consistently reinforcing our brand images in local, regional, national and international markets."

As a result, the company boasts strong and consistent reservations delivery to its franchisees, with an estimated $1.3 billion in gross room revenue booked through Choice Hotels' central reservations system in 2003.

The value Choice Hotels represents to its franchisees is also evident in the size and scope of its franchise services, which cover all aspects of hotel operations. With more than 150 field professionals providing revenue generation, operations support and training, Choice Hotels' franchise services team offers one of the best professional-to-hotel ratios in the industry. Additionally, the company offers extensive training for new hotel and general managers; and its proprietary management system, Profit Manager, equips hotels with superior operations technology and yield management capabilities that have a proven, demonstrated ability to increase RevPAR.

For many franchisees, the stability of the company's leadership is key to their satisfaction with Choice Hotels. Ledsinger, at the company's helm since 1998, has built a strong, experienced leadership team with a reputation for integrity and an approachable, communicative style of doing business.

Under Ledsinger's leadership, Choice Hotels was the first company to establish a formal Fair Franchising policy that defines a code of conduct unprecedented in the lodging industry. And Choice Hotels has also created an executive-level position to monitor and safeguard the Fair Franchising policy's principles throughout the company.

"At the end of the day, it comes back to the true measure of any franchise system--the success and profitability of its franchisees," Ledsinger said. "Are they happy with their affiliation? Is their franchisor meeting their expectations in terms of services and results?

"At Choice Hotels, a full 99 percent of our franchisees choose to stay with us rather than switch to competing brands or become independent," Ledsinger said. "That speaks volumes about our contribution to their success."

Choice Hotels, Choice Hotels International, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge, Rodeway Inn, and Clarion Collection are propietary trademarks and service marks of Choice Hotels International, Inc.

Clarion Collection brand extension honors individuality of boutique and historic hotels

Choice Hotels International has introduced the Clarion Collection, a brand extension of its full-service Clarion brand tailored to accommodate boutique and historic hotels that enjoy strong local identities but would benefit from the resources offered by one of the world's largest lodging franchisors.

Hotels suited to join the Clarion Collection are boutique and historic properties that are recognized for their well-established local identity and for their consistently high service and upscale amenities. Typically, the distinction of the architectural and/or interior design of these hotels conveys a sense of their location or history.

"The Clarion Collection allows highly individualized hotels, ranging from contemporary 'hip' to historic, to enjoy the best of both worlds," said Ron Burgett, vice president, franchise sales for Choice Hotels. "They retain the uniqueness that has earned them a reputation within their local markets, but they also benefit greatly from the $50 million national eight-chain marketing budget, strong reservations delivery and exceptional franchise services offered by Choice Hotels.

"Clarion Collection hotels are one-of-a-kind properties offering guests a memorable lodging experience, complete with upscale restaurants located on-site or adjacent, concierge services, spa-quality bathroom amenities, and other highly personalized services," Burgett said.