Industry Update
Press Release17 August 2020

Choice Hotels' Midscale And Upper Midscale Brands Outpace Industry In First Half Of 2020

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Logo 'Choice Hotels International'

Known for their segment leadership, all of Choice Hotels International, Inc.'s (NYSE: CHH) popular select service midscale and upper midscale brands saw material year-over-year revenue per available room (RevPAR) and average daily rate (ADR) index gains versus local competitors through the second quarter of 2020. The company expects this trend to continue as leisure travel bounces back faster than business travel amidst the pandemic environment, with leisure travel now comprising over 80% of room nights across the Choice Hotels portfolio.

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"Our brands connect meaningfully with both guests and hotel developers, especially as they search for brands they know and trust in the current environment," said Megan Brumagim, vice president, brand management, design and compliance, Choice Hotels. "As a proven leader in the midscale segment, we're well-positioned to continue leading the way as travel demand returns and guests look to take shorter trips when they hit the road. Choice Hotels has over 4,000 hotels in the U.S. situated in convenient locations within one mile of an interstate exit, many of which are in the midscale segment."

In addition to attracting more guests in the first half of the year, Choice's midscale and upper midscale brands had several notable achievements over the same timeframe, including:

  • Comfort1 hotels that completed renovations as part of a $2.5 billion systemwide Move to Modern refresh by the end of 2019 continue to outperform the competition for the fifth consecutive quarter, with Q2 2020 RevPAR index gains of nearly 16 percentage points versus their local competitors.
  • Sleep Inn outperformed the midscale segment across key metrics with 6% higher RevPAR, 2.5 percentage points higher occupancy and a higher ADR.
  • Quality Inn, the largest midscale brand in the U.S., has continued growth, now representing almost 1,700 domestic properties.
  • Clarion Pointe, a brand extension of Clarion that launched less than two years ago, surpassed 50 franchise agreements awarded. This year alone, the number of open hotels doubled, with 15 open properties now spanning the country — from Greensboro, North Carolina, to Fresno, California.

"Our midscale and upper midscale brands' performance in the first half of the year reaffirms our proven value to guests and hotel owners in any environment," said Jason Cowan, senior vice president, franchise development, signature brands, Choice Hotels. "As a company, we awarded over 150 franchise agreements over the same period, over 50% of which were in these segments. We place our franchisees at the center of what we do, even during a crisis, and this shows how much they appreciate our approach and long-term strategy."

All Choice-branded hotels are participating in Commitment to Clean, an initiative that builds upon the strong foundation of franchisees' long-standing dedication to cleanliness with enhanced training and best practices for cleaning, disinfecting and social distancing. For more information on Commitment to Clean, visit https://www.choicehotels.com/about/commitment-to-clean-hotels.

Related Brands

Comfort

The Comfort brand, franchised by Choice Hotels, has been trusted by travelers and hotel owners for more than 30 years. With Comfort Inn, Comfort Inn & Suites and Comfort Suites hotel properties nationwide, the Comfort brand family is ready to take care of guests everywhere they need to be.
brand information

Quality Inn

By becoming a Quality® owner your hotel franchise instantly gains vast exposure as being one of the most recognized brands in the lodging industry.* Quality is Choice Hotels® largest conversion brand, and provides hotel franchise owners a great opportunity for an existing asset looking to strengthen its market position and to drive a return on investment.
brand information

Sleep Inn

Every Sleep Inn hotel offers a simply stylish stay that's designed to help our guests Dream Better Here. You'll find fresh, nature-inspired design elements that are modern but timeless, that create a relaxed and serene environment.
brand information

Clarion

When you convert your hotel into a Clarion® franchise property, you tap into a unique opportunity. As a midscale full-service hotel offering food & beverage and meeting space amenities, Clarion is a nationally recognized hotel franchise brand serving a need in the “gatherings” marketplace not filled by any other hotel brand today.
brand information
Other Brands operated by Choice
Ascend Hotel Collection
Cambria Hotels
Clarion
Clarion Pointe
Comfort
Comfort Suites
Econo Lodge
Everhome Suites
MainStay Suites
Quality Inn
Rodeway Inn
Sleep Inn
Suburban
WoodSpring Suites

About Choice Hotels®

Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. With more than 7,100 hotels, representing nearly 600,000 rooms, in over 40 countries and territories as of March 31, 2021, the Choice® family of hotel brands provides business and leisure travelers with a range of high-quality lodging options from limited service to full-service hotels in the upscale, midscale, extended-stay and economy segments. The award-winning Choice Privileges® loyalty program offers members benefits ranging from everyday rewards to exceptional experiences. For more information, visit www.choicehotels.com.

© 2021 Choice Hotels International, Inc. All rights reserved.

SOURCE Choice Hotels International, Inc.

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