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Hotel Franchise Business Plan – Choice Hotels

Updated 26.03.24 4 minutes read
Industry Insights

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.

Marketing and Advertising

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 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 franchisees both with and without franchise incentives.


Chem-Dry helps franchisees grow a profitable business through various marketing strategies. The company’s marketing experts have a deep understanding of how to leverage the Internet and social media as a marketing tool. All franchisees have an SEO-optimized custom website and are trained on how to use it. The franchisor assists with live web chat service, Google Ads, Pay Per Click advertising campaigns, directory optimization, automated online review services, and loyalty marketing tools. Chem-Dry also provides traditional marketing tools such as business cards, stickers, brochures, door hangers, envelopes, calendars, and email blasts. In addition, the franchisor provides access to its customer relationship management tool, OnTrack, a web-based program used for billing and scheduling customers, managing invoices and accounting software, and gauging customer satisfaction. Joorney Business Plans writers assist clients in writing marketing strategies and developing appropriate marketing budgets.


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 loyal members and guests while having flexibility in their hotel to support the business model and market demand.