Profile: Choice Hotels International Inc (CHH)
23 Jan 2019
Choice Hotels International, Inc. (Choice), incorporated on December 12, 1980, is a hotel franchisor. The Company's segments include Hotel Franchising, SkyTouch Technology (SkyTouch) and Corporate & Other. Choice franchises lodging properties under various brand names, including Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria hotels & suites, and Ascend Hotel Collection (collectively, the Choice brands). The Company had 6,514 hotels open and 775 hotels under construction, awaiting conversion or approved for development as of December 31, 2016 representing 516,122 rooms open and 62,547 rooms under construction, awaiting conversion or approved for development in 50 states, the District of Columbia and over 40 countries and territories outside the United States. The Company's domestic franchising operations are conducted through direct franchising relationships while its international franchise operations are conducted through a combination of direct franchising and master franchising relationships.
Cambria hotels and suites is a construction select service hotel chain that operates in the upscale lodging category, targeting primary market locations. Ascend Hotel Collection is a membership program. Comfort Inn and Comfort Inn and Suites hotels are primarily upper mid-scale limited service hotels. Comfort Inn hotels offer breakfast with various options, a swimming pool and/or fitness center, and Internet access. Sleep Inn is a construction brand that operates in the moderate tier of the mid-scale lodging category. Clarion helps owners of existing mid-scale assets with food and beverage capabilities. Clarion helps business and leisure guests get together by providing meeting/banquet facilities with catering, breakfast, a menu of basic evening meals and lounge with at least beer and/or wine selections. Amenities include Internet access, a pool or fitness center, and a business center. Quality hotels provide accommodations. MainStay guest rooms feature high-speed Internet access, fully equipped kitchens with a two-burner range, dishes, utensils, dishwasher, sink with disposal, microwave, and full size refrigerator. Rodeway Inn is a brand that also serves the economy segment and offers lodging for travelers on a budget.
The Company conducts its operations in Scandinavia through a franchise relationship with Nordic Choice Commercial Services A/S (NCH). As of December 31, 2016, NCH had 185 open properties in its development territory, which includes Denmark, Norway and Sweden on an exclusive basis and Latvia, Lithuania and Finland on a non-exclusive basis. The Company conducts its operations in Japan through a franchise relationship with Choice Hotels Japan Co. Ltd (CHJ). The Company conducts franchising operations in Germany, Italy, Czech Republic, Austria and Hungary, and portions of Switzerland through Choice Hotels Licensing B.V. (Choice BV), and in France, Portugal, Belgium and the French speaking Cantons of Switzerland through a subsidiary of Choice BV, Choice Hotels France SAS. As of December 31, 2016, the Company's subsidiaries had 182 properties open and operating in continental Europe. As of December 31, 2016, Luckwell Limited had six properties open and operating in Ireland and Northern Ireland. It conducts direct franchising operations in the United Kingdom through Choice BV. As of December 31, 2016, its subsidiary had 30 properties open and operating in the United Kingdom.
The Company conducts its operations in Canada for all of its brands except Cambria hotel and suites, MainStay Suites and Suburban Extended Stay Hotel through Choice Hotels Canada Inc. (CHC). The Company conducts direct franchising operations for its extended stay and Cambria hotel and suites brands in Canada through its subsidiary, Choice Hotels International Licensing ULC. The Company conducts direct franchising operations in India through subsidiaries for the Comfort, Quality, Sleep and Clarion brands. As of December 31, 2016, the Company had 23 franchised properties open and operating. The Company conducts direct franchising operations in Australia, New Zealand, and Singapore through a subsidiary, Choice Hotels Asia-Pac Pty. Ltd. (CHAP). As of December 31, 2016, CHAP had 228 franchised properties open and operating in Australasia.
The Company's subsidiary Choice Hotels Mexico S. de R.L. de C.V. (CHM) conducts direct franchising operations in Mexico on behalf of Choice BV, which acts as the franchisor in Mexico. CHM is focused on establishing Clarion, Quality, Sleep and Comfort brands through conversion of hotels in Mexico. As of December 31, 2016, the Company's subsidiary had 30 properties open and operating. The Company conducts its operations in Brazil and certain other South American territories through a non-exclusive master franchise relationship with Atlantica Holdings International, Ltd. (Atlantica). As of December 31, 2016, Atlantica had 67 open properties in its development territory. Choice conducts its operations in certain Central American territories through a master franchise relationship with Real Hotels and Resorts, Inc. (Real). As of December 31, 2016, Real had 14 open properties in its development territory which consists of Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Ecuador and Panama. As of December 31, 2016, three properties were open and operating in China. In addition, the Company through Choice BV, has direct franchise relationships with properties in Malaysia and Turkey.
SkyTouch is a division of the Company that develops and markets cloud-based technology products to the hotel industry. SkyTouch sells, manages and supports a cloud-based property management system, known as SkyTouch Hotel OS, to branded chains and independent hotels. SkyTouch Hotel OS is based on the Company's technology platform, choiceADVANTAGE. SkyTouch Hotel OS offers various functions of the choiceADVANTAGE platform, including managing reservations, guest stays, and rates on any device with an Internet connection, as well as the ability to connect with other systems used by branded chains and independent hotels. The SkyTouch platform includes a mobile-native interface that offers mobile functionality to the various elements of property management and housekeeping. SkyTouch also provides onsite and remote installation and training, and around the clock phone support to its clients. SkyTouch's online training includes simulation-based, highly interactive e-learning modules with the option to modify and create additional content to meet the needs of hoteliers.
The Company competes with Marriott International, Inc., Aloft, Hotel Indigo, Hilton Garden Inn, Sterling Hotels, Summit Hotel & Resorts, Small Luxury Hotels, Historic Hotels of America, Holiday Inn Express, Country Inn & Suites, Hampton, Fairfield Inn & Suites, Microtel, La Quinta, Sheraton, Radisson, Best Western, Ramada, TownePlace Suites, Candlewood Suites, Extended Stay America, InTown Suites, Studio 6, WoodSpring Suites, Days Inn, Super 8, Red Roof Inn, Americas Best Value Inn and Motel 6.
Choice Hotels International Inc
1 Choice Hotels Cir Ste 400
ROCKVILLE MD 20850-5140