Editorial

Hospitality Industry Offers Dual Rewards to the Savvy Investor

Own a hotel! <a href='http://www.bison.com' style='font-weight:normal;'>Franchise</a> opportunities with Choice Hotels

If you’re looking for a competitive advantage in the hotel industry, look no further than Choice Hotels, parent company of some of the most visible hotel chains in the country. With both the number of hotels in operation and the length of time they’ve been in business, Choice has the expertise to guide you to new levels of success.

Brad LeBlanc, Vice President of franchise Sales, New Construction, stresses that the company is all about meeting the needs of the franchisee. “If someone comes to us wanting to build a hotel, we will put him into the brand that really fits. Then we help him find the perfect location, right down to the corner of the interstate that will bring him the most business. We’re very flexible when it comes to making our franchisees happy.”

Choice Hotels, headquartered in the Washington DC suburb of Silver Spring, Maryland, conducts many studies before locating a property to be sure the location will support the business. This can include an analysis of the competition, changes in the market, geographic growth patters and performance of the market. With these reports, and the variety of the hotels offered, Choice can find each franchisee both the property and the hotel that will meet his needs, wants and desires.

Experience is one of the many ways Choice Hotels bests their competition. Started in 1941, Choice was the first hotel franchise company. Today they have 5,200 hotels internationally with over 4,000 just in the U.S.

The ten brands offered by Choice Hotels include hotels from economy to luxury and most are names known throughout the country: Comfort Inn^®, Comfort Suites^®, Quality Inn^®, Sleep Inn^®, Clarion^®, MainStay Suites^®, Suburban Extended Stay Hotel^®, Econo Lodge^®, and Rodeway Inn^®. Its newest brand, Cambria Suites™, is an upscale, all-suites hotel. Several dozen Cambria Suites locations are currently under development and the first location should open by the end of the year in Boise , Idaho .

“Each of our brands offer a unique niche in the industry, which is why our franchisees fill room nights,” says LeBlanc. “Whether it is the amenities that we offer, the look of our room s, or the advantage of being able to offer a suite over just a guest room , there is always something we can offer that the customer is looking for.” LeBlanc says that their hotels attract about equal numbers of business travelers and leisure travelers, so they have certain standards that are maintained across the brands to serve both types of clientele, from free high-speed Internet access to a free continental breakfast. “Even in a market where there are a number of other hotels,” says LeBlanc, “there can be a myriad of different things that separate us from the com petition.”

Two important items will be required of the Choice Hotels franchisee. The first is adequate capital as the initial investment is higher than many available franchise concepts. The second is a background in business and a strong desire to provide great customer service. “We can put someone in a hotel for a minimum cash investment of at least a half million,” says LeBlanc, “particularly if they are looking at an economy hotel in the suburbs. Certainly, our upscale hotels will have a higher investment and with all of our brands we assist our franchisees in locating the appropriate financing.”

A background in the hospitality industry is helpful but not required, claims LeBlanc. Choice Hotels has the ability to train someone who doesn’t know the business. “We have new franchisee training at our headquarters and we assist with everything from site selection to meeting with their contractors. In addition, we have a field person who lives in the area and will work with the franchisee all through pre-opening, opening, and beyond.” Choice also helps with employee selection and training and has continuing education opportunities both regionally and at the annual convention.

“A hotel owner is an entrepreneur,” says LeBlanc. “A hotel operates 24 hours a day so having a reliable staff and being able to both manage and motivate employees is important.” Current franchisees com e from a variety of previous businesses such as home builders, car dealerships and Restaurant owners. What they have in com mon is the desire to meet the customer’s needs and the ability to make good business decisions every day.

Although most people are familiar with the majority of the hotel brand names under the Choice umbrella, Choice does a significant amount of national marketing. Last year they spent $50 million in marketing and advertising. Choice also helps the franchisee with marketing in their local area using methods most effective for that location.

“There are three important areas that a potential franchisee should look at when considering a franchise purchase,” says LeBlanc. “Look for a company with consistency, longevity and a partnership mentality. It’s critical to study all your options and a business with a track record of success, retention of current franchisees and a consistency of the brand will be there for you in the long term. I call it cradle to grave support and that’s what Choice Hotels offers.”

If you need another reason to consider Choice Hotels, keep in mind that this business offers dual rewards. First, you’ll have a profitable business in a growth industry. And secondly, you will own both the land and the building for a long term real estate investment. “Hotel owners build long term real estate equity value,” says LeBlanc. “Historically your asset will appreciate so that after a period of time you will be able to sell your business for more than you paid originally.”

According to LeBlanc, over 90% o its franchisees stay with Choice. That’s an extremely high rate of satisfaction for a business with over 5,000 locations. If you are looking for a business that just makes a great deal of sense, one that has the experience and support you seek, consider a partnership with Choice Hotels.