“Momentum” was the buzzword at Choice Hotels International’s annual convention in Las Vegas last week, and CEO Steve Joyce made it clear that it’s the efforts of franchisees that continue to fuel the company’s forward motion. Here’s an update on a few of Choice’s brands that are making waves.
Choice is sharply focused on expanding the Ascend Hotel Collection and Cambria Hotels & Suites in primary urban markets, and recently landed former IHG exec Janis Cannon as its new senior vice president of upscale brands. Ascend and Cambria “have already become the highest occupancy and ADR brands in our system with the highest CRS delivery,” said Chief Development Officer David Pepper. “The more business travelers we attract to these upscale hotels, the more we build up our base of loyal Choice customers that will stay at all your properties.”
Ascend has more than 150 properties across the globe and another 56 in the pipeline. Cambria, which has 25 open locations, has 11 hotels under construction and another 15 ready to start in the next six to eight months. “The commitment to growing upscale and the Cambria brand is the number one corporate priority for all of Choice Hotels International,” said Rebecca Mervis, Cambria’s director of brand strategy and marketing.
To help fuel Cambria’s growth, Choice launched an aggressive key money program last year to develop projects in high RevPAR urban markets. The company also has expanded its relationships with institutional partners like Fillmore Capital, which just closed its fifth deal with the upcoming conversion of its MileNorth Hotel in Chicago to a Cambria. To drive more conversions, Choice recently began a strategic venture with the CapStar Hotel Company, led by former Loews CEO Paul Whetsell.
Additionally, Choice remains committed to improving consistency across the Comfort Inn and Comfort Suites brands. Over the last five years, Comfort has removed 600 hotels from the system, creating 600 open markets for development, Pepper said. The Comfort pipeline has increased by 24 percent over the last 12 months, he added, with 200 executed but not-yet-open properties waiting in the system.
Design standards are a critical component for Comfort owners to improve guest perception and keep up with the competition in the upper midscale segment, stressed Megan Brumagim, head of domestic brand management for Comfort. As such, owners will need to comply with property improvements in two phases: update public spaces by the end of 2017 and refresh guestrooms by the end of 2019 or their next contract window, whichever comes first. “Having a modern and up-to-date hotel is table stakes for playing in upper midscale,” Brumagim told franchisees. Other updates on the horizon include refreshed business centers, a new line of bath amenities, new keycards, and faster, more consistent WiFi.
During the conference, Choice announced an evolved prototype for Sleep Inn, which builds on the brand’s natured-inspired “Designed to Dream” prototype, first rolled out in 2010. The new exterior features warm gray colors, pops of the brand’s signature purple, a slim porte-cochere, and energy efficient LED lighting. Public space updates include a variety of seating options, from private banquettes to a communal table with outlets. “We’ll do all of this while staying cost-neutral to the already low-cost prototype of today,” said Anne Smith, vice president of brand strategy for Choice. In terms of development on the horizon, Sleep Inn has 75 executed projects waiting to open.
As the company’s 11 brands continue to drive momentum, Choice expects RevPAR to increased about 4 percent for the full-year 2016. “If the economy, employment, and consumer confidence hold up,” Joyce said, “we see no reason why we’re not doing this kind of business through at least 2018.”
