Choice Hotels

Choice Hotels International is one of the largest and most diversified hotel franchise companies in the world, with more than 7,500 hotels and approximately 654,000 rooms across 46 countries and territories. The company trades on the New York Stock Exchange under ticker symbol CHH and has operated through a franchise model for more than eight decades. Founded in 1939 as Quality Courts United, a cooperative of seven motel owners formed to establish standards in the early roadside lodging industry, Choice Hotels is headquartered in Rockville, Maryland. Its brands cover economy and midscale lodging through Econo Lodge, Rodeway Inn, Quality Inn, Comfort Inn, and Comfort Suites, along with upscale options including Cambria Hotels and the soft branded Ascend Hotel Collection. WoodSpring Suites, MainStay Suites, and Suburban Studios extend the portfolio into extended stay lodging. The company offers franchise investors an asset light hotel ownership model supported by its operating platform, technology, and loyalty programs while owners retain control of their properties.

Lodging demand is supported by domestic leisure travel, changing business travel patterns after the pandemic, the growth of bleisure travel combining work and leisure, and development in secondary and tertiary markets that have historically had fewer branded hotels. Choice Hotels focuses mainly on the midscale, upper midscale, and extended stay segments. These categories have shown resilience during economic downturns because they serve value conscious travelers whose demand can continue when discretionary spending falls. Competitors include Marriott International, Hilton Worldwide, IHG Hotels, Wyndham Hotels, and Best Western. Choice's stated advantages include broad coverage in the midscale segment, a conversion model for existing hotels, and a growing position in extended stay lodging.

The required investment depends on the brand, property type, and whether the project converts an existing hotel or involves new construction. An 80 room Comfort Inn or Quality Inn conversion typically requires approximately $780,000 to $3.1 million, including the franchise affiliation fee, property improvement plan costs, signage, technology upgrades, and working capital. An 80 room prototype new build ranges from $9.5 million to $14.3 million, depending on the market, land costs, and brand specifications. Across the portfolio, from Econo Lodge conversions to Cambria Hotels new builds, total investment ranges from approximately $119,000 to over $26 million. The initial franchise fee is $500 per room for new franchise agreements, with a $50,000 minimum. Transfers and renewals cost $750 per room, with a $65,000 minimum. Franchise agreements typically run for 20 years. Conversion projects can begin generating branded revenue within months, compared with the two to three years generally required for new construction.

Choice Hotels provides operational assistance for experienced hotel operators and investors entering hospitality for the first time. Its choiceADVANTAGE property management platform includes tools for revenue management, rate optimization, distribution channel management, and guest communications. The central reservation system connects franchise properties with the company's global distribution network, online travel agencies, and the choicehotels.com direct booking platform. Choice Privileges has over 68 million members and provides repeat business and customer acquisition support for franchise properties. Training covers property operations, revenue management, guest service standards, and brand quality requirements through in person workshops, online learning modules, and field support from the franchise services team. New construction support includes site selection guidance, architectural and design resources, construction oversight, and project management assistance. For conversions, Choice conducts property assessments and creates property improvement plans intended to align renovation spending with brand requirements. Marketing resources include national advertising, digital programs, localized tools, social media resources, and partnerships with major travel platforms.

Extended stay properties generally have longer average stays, lower operating costs per occupied room, and more predictable revenue than traditional transient hotels. SBA lending data for Choice Hotels franchise properties shows consistent loan origination activity. The brand portfolio also allows an owner to match the project with the market, such as an Econo Lodge conversion in a secondary market or a Cambria Hotels new build in an urban center, while using the same loyalty program, technology platform, and brand infrastructure.

Choice Hotels opened 407 hotels globally in 2024, a 21 percent increase over the prior year, and maintained a development pipeline exceeding 97,000 rooms. Ninety eight percent of that pipeline was concentrated in upscale, extended stay, and midscale segments. Extended stay was the primary growth engine, with net rooms growing nearly 12 percent year over year and a record number of hotel openings in 2025. The acquisition of the Radisson Hotels Americas portfolio in 2022 added Radisson, Country Inn and Suites, Radisson Blu, and Park Inn to the system, expanding the company's presence in upper midscale and upscale lodging. A 2024 strategic partnership with Westgate Resorts added 21 properties and over 14,000 rooms. Franchise agreements awarded outside the United States more than doubled in 2025 compared with the prior year. Choice Hotels also repurchased $382 million in stock and paid $56 million in dividends in 2024. For franchisees, these developments support a larger loyalty program, broader brand coverage, and continued investment in technology and revenue management.

The typical Choice Hotels franchise investor has real estate investment experience, hospitality management capability, and enough capital to complete a conversion or new build in a market with strong lodging demand. Choice recruits experienced hoteliers converting independent or competing brand properties as well as real estate investors entering hospitality. Multi unit ownership is common, and many successful franchisees operate portfolios of 5 to 20 or more properties across multiple brands. Opportunities are available across all 50 states, including extended stay development in markets with employment growth, new construction in underserved suburban and exurban markets, and conversions where rebranding may improve a property's position. Financial requirements range from conversion investments under $1 million to new build projects requiring $10 million or more in total capital. The 20 year franchise term gives owners time to pursue long term investment plans, while Choice's development team helps evaluate sites, brands, and project structures for each market.