16 Apr Franchise Business Plan – Choice Hotels
Choice Hotels International, Inc. is a hospitality franchisor based in Rockville, Maryland. The company is one of the largest hotel chains in the world and owns multiple hotel brands ranging from upscale to economy. Choice Hotels has approximately 7,000 franchised hotels with 570,000 rooms in approximately 40 countries. The company had $7.02 billion in reservations delivered in 2017. Over 20 million customers book a Choice Hotels brand property every year. Around 99% of the company’s total revenues are generated by asset-light franchise contracts.
Choice Hotels offers various training programs such as the Total Lodging by Choice (TLC) Orientation Program, the Certified General Manager training under the Hospitality Operations Success Training (HOST), the ChoiceADVANTAGE training, and the CHESS training program. The training takes place either at the company’s headquarters or at a franchisee’s hotel. The training programs include both classroom and on-the-job training. Choice Hotels does not require the franchisee to personally participate in the direct operation of the franchised hotel. However, the franchisee must hire a certified general manager at the hotel who has satisfactorily completed all required training. Joorney Business Plans has extensive experience in creating long-term employee plans and matching the proposed employees’ experience, knowledge, skills, and training to their designated roles.
In order to maintain a strong, globally-recognized brand, Choice Hotels spends over $200 million on marketing and advertising strategies including TV, email, web, mobile, print, and social media. Its portfolio of brands covers a range of price points and guest experiences that meet any stay occasion anywhere around the world. Joorney Business Plans writers develop a comprehensive marketing and advertising strategies in line with the franchise agreement.
The initial start-up costs for establishing a Choice Hotel franchise business range from $88,100 to $13,200,000. The company is a part of the Veterans Transition Franchise Initiative (VETFRAN) and offers incentives to veterans of the U.S. Armed Forces. Choice Hotels offers honorably discharged veterans a $1,500 a room incentive not to exceed $125,000 for midscale brands and a $750 per room incentive not to exceed $50,000 for economy brands. The incentive is paid shortly after the opening of the hotel. Joorney Business Plans has extensive experience in developing long-term financial projections for Choice Hotels franchises both with and without franchise incentives.
Choice Hotels has the ability and the capacity to maximize the financial returns of its franchisees. With 80 years of industry experience and governance in standards, it is one of the most efficient and cost-effective companies in the hospitality industry. Compared to other global hotel brands, Choice Hotels is less rigid in enforcing a specific product and brand look. The company helps franchisees meet the expectations of loyalty members and guests while having flexibility in their hotel to support the business model and market demand.