Choice Hotels Growth Fueled by Conversions in its Core Segments

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Apr 10, 2017, 09:00 ET

ROCKVILLE, Md., April 10, 2017 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest hotel companies, announced today its conversion-focused brands – Quality, Clarion, Econo Lodge and Rodeway – are supporting the company's robust overall growth, with more than 1,500 locations opened over the last five years. In total, Choice's domestic pipeline of hotels, including those converting into the system, under construction or approved for development, increased 19 percent in 2016. The company's continued success is strengthened by RevPAR gains and the ongoing focus on delivering value to franchisee owner-operators.

"Quality, Clarion, Econo Lodge and Rodeway Inn are well-recognized brands with a proven track record of performance. Their success is driven by access to Choice's extensive resources, from in-market support to help ease the conversion process, to tools that help improve ongoing daily operations," said Tom Nee, vice president, franchise development, Choice Hotels. "More importantly, Choice is the preferred partner for both new and existing franchisees, who understand the value we deliver, including our easy-to-use systems, national marketing initiatives, and our award-winning Choice Privileges loyalty program."

In 2016, Quality Inn, the largest single brand in the Choice system, dominated the midscale segment in RevPAR growth, with an increase of 5.6 percent over the previous year, and has experienced 27 consecutive months of market share growth. Quality's growth is accelerating, with more than 320 new locations added in the last two years alone. When joining the Quality Inn system, franchisees gain instant brand awareness and extensive support resources that help dramatically increase a property's competitive position in its local market.

The Clarion brand similarly has seen strong momentum, with nearly triple the number of new projects executed in 2016, compared to the prior year. Clarion has recently enhanced its industry-leading efforts to streamline food & beverage operations, based on consumer feedback, while making additional changes to improve the hotel's overall return on investment. Clarion is well-positioned to meet the needs of midscale group business with its meeting space and catering, as well as other services to support successful small to medium-sized corporate and social events.

"In 2014, I joined Choice by converting my existing hotel to a Clarion hotel. Given the success of this project, I have expanded my portfolio to other Choice brands," said Ray Dayal, a Choice Hotels franchisee whose properties in Nashville include the Quality Inn Downtown – Stadium, the Clarion Hotel Downtown – Stadium, and The Capitol Hotel, a member of The Ascend Hotel Collection. "I continue to partner with Choice because it provides the tools and resources that allow me to run my business efficiently and effectively. Plus, its brand recognition and strength drives people to my hotels and contributes to my success."

About Choice Hotels
Choice Hotels International, Inc. (NYSE: CHH) is one of the world's largest lodging companies. With more than 6,500 hotels franchised in more than 40 countries and territories, Choice Hotels International represents more than 500,000 rooms around the globe. As of December 31, 2016, 775 hotels were in our development pipeline. Our company's Ascend Hotel Collection®, Cambria® hotels & suites, Comfort Inn®, Comfort Suites®, Sleep Inn®, Quality®, Clarion®, MainStay Suites®, Suburban Extended Stay Hotel®, Econo Lodge®, Rodeway Inn®, and Vacation Rentals by Choice Hotels™ brands provide a spectrum of lodging choices to meet guests' needs. With more than 30 million members and counting, our Choice Privileges® rewards program enhances every trip a guest takes, with benefits ranging from instant, every day rewards to exceptional experiences, starting right when they join. All hotels and vacation rentals are independently owned and operated. Visit us at www.choicehotels.com for more information.

SOURCE Choice Hotels International, Inc.