#USA #Las Vegas #Choice Hotels #Franchise Ownership #Patrick Pacious

Choice Hotels International's 69th Annual Convention: Powering the Future of Franchise Ownership

In an inspiring gathering, Choice Hotels International, Inc. (NYSE: CHH), a leader in the global lodging franchising industry, has initiated its 69th Annual Convention in Las Vegas this week, setting the stage for an exchange of ideas and insights aimed at propelling the future for hotel owners. President and CEO, Patrick Pacious, delivered a powerful keynote speech that encapsulated the mission of the event — "Powering the Future" for hotel owners and their businesses.

The convention gathered thousands of stakeholders including franchise owners, operators, and key industry partners, making it an ideal platform for exchange and education. It features nearly 100 educational sessions, a bustling trade show connecting owners with countless qualified vendors, and various brand-specific sessions where leaders from Choice Hotels shared insights on recent successes and outlined strategic investments designed to boost revenue and cut operational costs.

Pacious stressed the commitment to delivering unmatched value to hotel owners. He emphasized that the company's growth has not merely resulted in a larger organization but a stronger and smarter operation. As business travelers constitute 40% of reservations, Choice Hotels has successfully expanded its upscale offerings, increasing room availability by 44% in the last year, whilst operating a robust collection of over 7,500 hotels globally.

Among the notable accomplishments reported by Choice Hotels include:

• - Loyalty Programs Flourishing: Membership in the revamped loyalty program has skyrocketed to over 70 million. Members tend to book directly, stay longer, and expend more, which has led to a 30% increase in redemptions and a 13% rise in average length of stay.
• - Enhanced Online Booking: The website refresh has increased the conversion of online lookers into direct bookers by over 6%, with upscale bookings up more than 14% just in the early weeks of 2025.
• - Cost Savings Strategies: Through the efforts of the area directors, franchise property owners identified over $25 million in potential operational savings, averaging around $33,000 per participating property. A new food group purchasing program has facilitated a 9% savings on food costs, proving the financial advantage of such strategic initiatives.
• - Revenue Growth Solutions: The ChoiceROCS program has generated substantial returns for participants, translating to an additional $81 million in revenue through its advanced analytics and data-driven recommendations.

Pacious articulated that the firm's growth has enabled strategic investments in proprietary technology tools and tailored systems for owner success, illustrating that scale is synonymous with improved business strategies and operations. As such, Choice Hotels is fostering an environment conducive to maximizing profitability for franchise owners.

Moreover, in today’s competitive hospitality landscape, the ability to scale while catering to a diverse clientele is invaluable. Choice Hotels has managed to negotiate lower online travel agency fees and leverage its bargaining power with suppliers to afford better financial outcomes for its franchise network.

In the fourth quarter of 2024 alone, revenues from group bookings soared by 45% year-over-year, showcasing the brand’s growing traction and effectiveness in the market. Strategic partnerships with notable organizations such as AAA and AARP are also channeling more guests directly to Choice properties, indicating an effective marketing strategy.

The company is not just resting on its laurels; it remains at the forefront of technology utilization within the hospitality sector. Over the past five years, it has been actively incorporating Artificial Intelligence (AI) to refine marketing strategies, enhance revenue management, and provide innovative tools supporting franchise growth.

Looking ahead, the strategic plan includes:

• - Enhancing flexibility in rate management for franchisees across various segments.
• - Creating pathways to boost occupancy rates among small to mid-sized businesses via self-service platforms, without additional labor costs for hotels.
• - Utilizing AI-driven marketing strategies to attract new guests proactively.
• - Streamlining group travel systems using AI to identify lucrative opportunities and respond effectively to customer demands.

Pacious highlighted that Choice Hotels intends to sustain its leadership in midscale and extended stay sectors. New, cost-effective prototypes have recently been introduced, honing brand identities and embedding growth-driven features that meet contemporary demands.

With an impressive portfolio, including the renowned Quality Inn, which recently celebrated its 85th anniversary, Choice is strategically poised to maximize the potential of its market share in the evolving travel economy. Additionally, the company prominently leads the extended stay segment, having celebrated the opening of its 500th property last year.

In conclusion, Patrick Pacious conveyed a resounding message during the convention about the momentum and future direction of Choice Hotels. The firm is not just growing in size; it is evolving, equipped with a resolute focus on innovation. The harmonious blend of expansive scale and technological advancement is paving the way for a transformative future for hotel owners eager to thrive alongside a visionary leader in the franchising space.