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About Choice Hotels International, Inc.

This company offers a lot of hospitality choices. Choice Hotels is a leading hotel franchisor with more than 6,800 locations and 525,000 rooms throughout the US and more than 40 other countries. Its flagship brands include Comfort Inn, one of the largest limited-service brands with about 1,600 properties (including Comfort Suites) along with Quality Inn, which serves the midscale hotel segment. Its Econo Lodge chain offers lodging primarily for budget-minded travelers. Other Choice Hotels brands include the full-service Clarion chain, Rodeway Inn budget hotels, and Sleep Inn.

Geographic Reach

Rockville, Maryland-based Choice Hotels does most of its business in the US, although it generates around 10% of sales form its 1,130 international hotels. It has properties in Australia, Brazil, Canada, Czech Republic, France, Germany, Honduras, Italy, New Zealand, and Norway.

Sales and Marketing

Choice Hotels advertises on national television, radio, the internet (including social media), print advertising in consumer and trade media, and promotional events such as joint marketing promotions with qualified vendors and corporate partners.

It deploys field-based sales agents to target specific groups such as business travelers, senior citizens, automobile club members, families, government and military employees, educational organizations, and meeting planners.

Financial Performance

Choice Hotels has recorded strong, consistent growth over the last five years as it expands its hotel- and room-count. In 2017 the company’s revenue crested $1 billion for the first time, growing 9% on 2016. Growth was due to higher revenue from the marketing and reservation system, which recorded $72.1 million organic growth on new reservation delivery programs and higher revenue from its Choice Privileges loyalty program. It also recognized an additional $30.7 million of previously deferred revenue relating to changes in the Choice Privileges expiration policy. Royalty fees grew $23.2 million thanks to higher revenue per room, a 2% increase in room numbers, and an increase in the royalty rate.   

Choice Hotel’s net income fell 18% to $114.9 million, mostly due to higher income taxes due to a one time impact of changes to the US tax code.

The company’s tax position improved during the year, its coffers expanding $31.5 million to $235.3 million due to a strong increase in cash from operations. Operating cash benefited from adjustments for deferred income taxes and changes in forgivable notes receivable. 

Strategy

Choice Hotels is riding high and is making the most of strong revenue, profits, and cash by investing for the future. It is diversifying and growing its hotel portfolio, particularly in the upscale price bracket where it has a smaller market presence. The Cambria brand, which charges the highest prices among Choice’s brand portfolio, has a 70-strong pipeline as of end-2017. The brand targets primary market locations, and where markets have a high barrier to new construction entry, its approach is to reuse and convert existing buildings. Choice also maintains a healthy pipeline in its core market segments; it had some 850 and 65,765 rooms in the pipeline at the end of 2017, an increase of 132 on 2016. 

The launch of a new cloud-based global reservation system, choiceEDGE, in 2018 will position the company to extend its range further into upper upscale and beyond. ChoiceEDGE offers scalability and stability; connectivity with online travel agents, global distribution systems, and property management systems; and the capability to add disparate inventory types, including hotel rooms, meeting rooms, vacation rentals, and package offerings.

Mergers and Acquisitions

In 2018 Choice Hotels acquired WoodSpring Suites, a hotel franchisor serving the economy extended-stay market with 240 hotels in 35 states, for $231 million.

Choice Hotels International, Inc.

1 CHOICE HOTELS CIR STE 400
Rockville, MD 20850-5172
Phone: 1 (301) 592-5000

Stats

Employer Type: Publicly Owned
Stock Symbol: CHH
Stock Exchange: , NYSE
Chairman: Stewart Bainum
CIO: Todd Davis
President and CEO: Patrick S. Pacious
Employees (This Location): 500
Employees (All Locations): 1,882

Major Office Locations

Rockville, MD

Other Locations

Demopolis, AL
Jasper, AL
Phoenix, AZ
Buttonwillow, CA
El Segundo, CA
Three Rivers, CA
Augusta, GA
Kingsland, GA
Morrow, GA
Mendota, IL
Indianapolis, IN
Oak Grove, KY
New Orleans, LA
Haverhill, MA
Ocean City, MD
Pocomoke City, MD
Rockville, MD
Plymouth, MI
Independence, MO
Clinton, MS
Morehead City, NC
Dickinson, ND
Hawthorne, NY
Lake George, NY
Hudson, OH
Middletown, RI
Mount Pleasant, SC
Corpus Christi, TX
Euless, TX
Houston, TX
Orem, UT
Hampton, VA
Harrisonburg, VA
Richmond, VA
Sterling, VA
Tumwater, WA