Company's Scale and Innovation-First Mindset
Continue to Help Drive Franchisee Revenue and
Reduce Operational Costs
LAS
VEGAS, April 30, 2025 /PRNewswire/ -- Choice
Hotels International, Inc. (NYSE: CHH), one of the world's largest
lodging franchisors, opened its 69th Annual Convention in
Las Vegas this week with a keynote
by President and CEO Patrick
Pacious, setting the tone for three days centered on a
single mission: "Powering the Future" for hotel owners and their
businesses. The event brings together thousands of owners,
operators, and industry partners for nearly 100 educational
sessions, a trade show where owners can connect with hundreds of
qualified vendors, and brand sessions to hear from Choice leaders
about recent performance success and where the company is investing
to help drive revenue and lower costs.
"Everything we do at Choice Hotels is about delivering value to
hotel owners. The stronger we and our franchisees grow together,
the more we can re-invest in their future success," said
Pacious.
Pacious opened with a clear message: Choice Hotels is not just
bigger — it's better and stronger. The company's growth has allowed
it to attract a more resilient and higher income customer,
including more business travelers who now represent 40% of all
stays. Its upscale and above brand portfolio grew rooms by 44% last
year and with more than 7,500 hotels worldwide, the company is
leveraging its growing size to strengthen value for owners, helping
to increase revenue opportunities, reduce operating costs, and fuel
long-term business success. Some of the results Choice and its
owners have achieved include:
- Loyalty membership has surged past 70 million, with members
booking direct more often, staying longer, and spending more. The
revamped program's enhancements — longer booking windows, premium
room redemptions, and exclusive experiences — have helped drive a
30% increase in redemptions and 13% growth in average length of
stay.
- Over 6% year-over-year increase in converting lookers into
direct bookers as a result of the ChoiceHotels.com refresh, with
upscale online booking conversion up more than 14% in the first
quarter of 2025.
- Area Directors helped owners find over $25 million in potential operational cost savings
last year, an average of $33,000 per
participating property.
- A new food group purchasing program shows an average savings of
9% on food costs, based on market-basket comparisons since the
program launched in July 2024 to
March 2025.
- In 2024, hotels that used ChoiceROCS, a consultancy program
designed to help drive increased revenue by leveraging functional
expertise and advanced data analytics to provide pricing and
strategy recommendations, saw a 100-basis-point premium in RevPAR
Index versus hotels not using the program. In total, ChoiceROCS
drove $81 million in incremental
revenue to participating properties.
The scale of the company has helped facilitate the strategic
investments in proprietary tech tools, the loyalty program, and an
owner success system that helps its hotels stand out from the
competition. "Becoming bigger has allowed us to build a better and
stronger business for you," Pacious told the crowd.
Scale That Works for Hotel Owners
In a competitive high-cost landscape, scale and attracting more
and different customers are essential. From negotiating reduced OTA
fees and leveraging Choice's scale with suppliers, Choice delivers
tangible results for its franchise owners. In Q4 2024, group
business revenue jumped 45% year-over-year, and transient business
revenue in upper midscale rose 20%.
Through strategic partnerships — with AAA, AARP, Preferred
Hotels & Resorts, and Westgate Resorts — a strengthened Choice
Privileges loyalty program, and more, Choice Hotels is drawing more
guests directly to its properties and marketing channels. AARP
members booked over 1.1 million room nights at Choice hotels in
2024, and the average return on investment for hotels with an
official AAA appointment is $50,000.
Innovation for the Long Haul
Choice continues to lead at the intersection of hospitality,
franchising, and technology. The company has been leveraging
Artificial Intelligence for over 5 years now, and is harnessing its
power to deliver personalized marketing, smarter revenue
management, and new tools to help owners grow their business.
Last year, Choice Hotels launched an ambitious endeavor to
develop and implement a suite of cutting-edge, complementary and
needle-moving capabilities to be delivered over the next two years.
These consist of four areas:
- Empowering franchisees across all segments to manage rates with
greater flexibility.
- Driving more occupancy from small-to-mid-sized companies by
making it easier for them to do business through a self-serve
platform, with no new increased labor costs for hotels.
- Attracting and retaining new and existing guests through
enhanced, AI-ready digital marketing capabilities that enable
delivery of personalized messages to drive the right customers to
hotels.
- An AI-infused, streamlined group travel system that will help
franchisees identify the optimal opportunity and respond to
requests for proposals.
A Segment Leader Built for What's Next
The company has earned its reputation as a leader in midscale
and extended stay, and Pacious made clear that the company intends
to stay ahead by continuing to invest where it matters most. Choice
recently launched new, cost-effective prototypes for Comfort and
Country Inn & Suites, refining their brand identities and
introducing new brand features to drive growth and success. And
with one in every four midscale hotels in the U.S. flying a Quality
Inn flag — a brand that celebrated its 85th anniversary last year —
Choice is helping owners capture the full potential of their share
of today's competitive travel economy.
In extended stay, Choice continues to lead. In 2024, Choice
brands accounted for half of all economy and midscale extended stay
hotels open and under construction. Last year, the company
celebrated the opening of its 500th property, and continues to
innovate from the front with transformative solutions like "Lobby
in a Box" and "Kitchen in a Box," which make conversions easier and
faster. Its midscale Everhome Suites brand is growing at a rapid
pace, with 25 hotels projected to be open by the end of 2025. And
the WoodSpring Suites brand continues to operate under a proven
formula, with gross operating profits above 55%.
In the upscale and upper upscale segments, where Pacious
declared that "today's Choice is the industry's one to watch," the
company's growing presence is fueled by a strong commitment to
success, strategic investments and the rollout of a series of brand
refreshes designed to stand out in a sea of sameness. In 2024
alone, upscale-and-above room count rose to over 110,000 rooms, and
Choice Privileges members now benefit from access to 180,000
upscale rooms, including through partnerships with Westgate Resorts
and Preferred Hotels & Resorts.
Pacious closed with a message of momentum: Choice Hotels is
delivering and has bold plans for tomorrow. From midscale and
extended stay leadership to AI-powered transformation, Choice's
scale isn't just making it bigger — it's making it better. That
scale, combined with a relentless commitment to innovation, is
powering new possibilities for hotel owners ready to grow alongside
one of the industry's most forward-looking franchisors.
Subscribe to receive Choice Hotels news updates via
email here.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the
largest lodging franchisors in the world, with over 7,500 hotels,
representing more than 650,000 rooms, in 46 countries and
territories. A wide-ranging portfolio of 22 brands, from
full-service upper upscale properties to midscale, extended stay,
and economy enables Choice® to meet travelers' needs in more places
and for more occasions while driving more value for franchise
owners and shareholders. The award-winning Choice Privileges®
rewards program and co-brand credit card options provide members
with a fast and easy way to earn reward nights and personalized
perks. For more information, visit www.choicehotels.com.
SOURCE Choice Hotels International, Inc.
For further information: MediaRelations@choicehotels.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/choice-hotels-international-opens-its-69th-annual-convention-showcasing-strategic-investments-designed-to-power-the-future-of-franchise-ownership-302443037.html
SOURCE Choice Hotels International, Inc.