Choice Hotels International is a hospitality holding corporation

Holding company

A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 which is affiliated with several hotel brands and is based in Silver Spring, Maryland

Silver Spring, Maryland

Silver Spring is an unincorporated area and census-designated place in Montgomery County, Maryland, United States. It had a population of 71,452 at the 2010 census, making it the fourth most populous place in Maryland, after Baltimore, Columbia, and Germantown.The urbanized, oldest, and...

. In 2008, Choice Hotels’ total revenue was $642 million, of which $637 million was from Franchise and $4.94 million was from Corporate Items.

History

The company was started in 1939 in Maryland as Quality Courts United, a referral chain consisting of about seven motel owners. Later, the motel

Motel

A motor hotel, or motel for short, is a hotel designed for motorists, and usually has a parking area for motor vehicles...

 chain operated simply under the name Quality Motels (1969–71) and Quality Inns (since 1972). Quality Courts United accepted franchise

Franchising

Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 hotels without strict norms or guidelines from the company. This is different from Holiday Inn

Holiday Inn

Holiday Inn is a brand of hotels, formally a economy motel chain, forming part of the British InterContinental Hotels Group . It is one of the world's largest hotel chains with 238,440 bedrooms and 1,301 hotels globally. There are currently 5 hotels in the pipeline...

 which from their early beginnings implemented numerous mandatory standards and guidelines (e.g. room size and amenities) at every one of their locations. Also, Quality Inn accepted franchisees with existing hotels.

During its early years, Quality Courts' operations were entirely in areas of the U.S. east of the Mississippi River and portions of Canada. From 1946 to 1964, Quality had a marketing partnership with Best Western

Best Western

Best Western International, Inc. is the third largest hotel chain, with over 4,195 hotels in nearly 80 countries. The chain, with its corporate headquarters in Phoenix, Arizona, operates more than 2,000 hotels in North America alone. Best Western has a marketing program involving placement of free...

, whose properties were located mostly west of the Mississippi River, and thus not in direct competition with Quality. While this partnership made sense geographically, it did not work well in the long run, and was abandoned in 1964 as Best Western expanded into the Eastern U.S. with its Best Eastern operation (which was replaced by a nationwide Best Western operation in 1967). Quality Courts began its efforts toward national coverage in 1966 when it opened a motel in St. Louis, Missouri

St. Louis, Missouri

St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...

 and two in Texas at Houston and Arlington

Arlington, Texas

Arlington is a city in Tarrant County, Texas within the Dallas–Fort Worth metropolitan area. According to the 2010 census results, the city had a population of 365,438, making it the third largest municipality in the Metroplex...

.

The company became Quality International as the company switched to franchising in 1972. A few years later, the franchising well on its way, about 300 hotels were independently owned and only about 38 were still company-owned.

In 1982, Quality Inns pioneered segmentation in the lodging industry by introducing Comfort Inns and Quality Royale. Comfort Inn competes with such chains such as AmericInn Hotels, Baymont Inn & Suites

Baymont Inn & Suites

Baymont Inn & Suites is a hotel franchise owned by Wyndham Worldwide and based in the United States.The chain began as an idea by the current CEO of Marcus Corporation, Steven Marcus to create a limited-service, discount-priced motel chain. The first property, located in Oshkosh, Wisconsin, opened...

, and Fairfield Inn by Marriott

Fairfield Inn by Marriott

Fairfield Inn by Marriott is a lower cost brand of hotels that are franchised by Marriott International. The intended use is for guests requiring simply a place to sleep with fewer amenities. This allows Marriott to offer lower prices than would otherwise be possible...

; Quality Royale was meant to compete with upper mid-priced chains like Red Lion and Four Points by Sheraton

Four Points by Sheraton

Four Points by Sheraton is a Starwood Hotels & Resorts hotel brand, targeted towards business travelers and small conventions. The Four Points is Starwood's 3rd largest brand and is found in over 24 different countries with around 149 properties worldwide....

. Comfort Inn experienced impressive growth in the 1980s and 1990s.

Quality Royale was converted to Clarion Hotels in 1987. It represented a line of full-service hotels that offer travelers a variety of hotel styles and locations, from city centers, airport, and resorts. Clarion provides a full spectrum of services - including full service restaurants, lounges, room service, and banquet and conference centers.
Clarion's boutique line, Clarion Collection (now Ascend Collection), is an extension of the brand. Ascend Collection is designed for high-end, boutique and historic hotels that have an established local identity.
Clarions compete with hotel chains like Red Lion

Red Lion

Red Lion may refer to:Botany* Red Lion, a cultivar of the Hippeastrum genus of flowering plantsEntertainment* A robot vehicle from the animated television series Voltron...

, Radisson, and Four Points by Sheraton

Four Points by Sheraton

Four Points by Sheraton is a Starwood Hotels & Resorts hotel brand, targeted towards business travelers and small conventions. The Four Points is Starwood's 3rd largest brand and is found in over 24 different countries with around 149 properties worldwide....

. Internationally, over 300 Clarion Hotels are open with several more under development.

Two all-suite divisions, Comfort Suites and Quality Suites, were introduced as the first mid-market all-suite chains. The original Quality Inn brand competes with Holiday Inn

Holiday Inn

Holiday Inn is a brand of hotels, formally a economy motel chain, forming part of the British InterContinental Hotels Group . It is one of the world's largest hotel chains with 238,440 bedrooms and 1,301 hotels globally. There are currently 5 hotels in the pipeline...

, Best Western

Best Western

Best Western International, Inc. is the third largest hotel chain, with over 4,195 hotels in nearly 80 countries. The chain, with its corporate headquarters in Phoenix, Arizona, operates more than 2,000 hotels in North America alone. Best Western has a marketing program involving placement of free...

, and Ramada

Ramada

Ramada is a hotel chain owned and operated by Wyndham Worldwide.- History :The lodging chain was founded in 1953 by longtime Chicago restaurateur Marion W...

. Many former Holiday Inns were refranchised as Quality Inns during the 1990s and 2000s.

In 1989, the company introduced Sleep Inn, an economy brand utilizing a consistent interior corridor design prototype and all-new construction, designed by Rob Spurr. Sleep Inn and Sleep Inn and Suites are lower mid-priced and can be compared to Marriott's Fairfield Inn

Fairfield Inn

Fairfield Inn may refer to:*Fairfield Inn , a historic inn listed on the NRHP in Pennsylvania*Fairfield Inn , listed on the NRHP in North Carolina*Fairfield Inn by Marriott, a chain of hotels...

, Wyndham's Microtel

Microtel

The Microtel Inns & Suites brand is a chain of franchise hotels with locations in Argentina, Canada, Mexico, the Philippines and the United States. Hotels feature free local and long-distance phone calls within the continental United States, high-speed wired and wireless Internet access, expanded...

, Hilton's Hampton Inn

Hampton Inn

'Hampton Hotels, Hampton Inn, Hampton Inn & Suites, and Hampton by Hilton are the names of a brand of hotels trademarked by Hilton Worldwide. Most Hampton hotels are independently owned and operated by franchisees, though a few are owned and/or managed by the Hilton Hotels Corporation...

, or IHG's Holiday Inn Express

Holiday Inn Express

Holiday Inn Express is a mid-priced hotel chain within the InterContinental Hotels Group family of brands. As an "express" hotel, their focus is on offering limited services and a reasonable price. Standard amenities lean toward the convenient and practical which cater to business travelers and...

.The first location opened in the United Kingdom

United Kingdom

The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 in 1989. Since then, over 320 locations are open. All offer a "Morning Medley" deluxe continental breakfast, swimming pools at most locations, free local calls, and a consistent exterior/interior design. The brand is receiving its first major facelift in history with its "Brand Refresh". This is essentially a modernization of all properties by 2012 with new boutique-inspired guest rooms and public spaces.

The company bought the three economy-oriented chains known as Friendship Inns, Rodeway Inn

Rodeway Inn

Rodeway Inn is a chain of economy-priced motels in the United States and Canada. Rodeway Inn is a brand of the Choice Hotels group. There are over 150 locations in North America. The hotels are often located in or near popular tourist destinations and are known for providing guests with attractive...

, and Econo Lodge

Econo Lodge

Econo Lodge is an economy motel chain based in the United States and Canada. Econo Lodge is the second largest brand in the Choice Hotels system. It is one of the best known brands in its category and aims to provide affordable rooms to budget travelers. Econo Lodge properties contain a minimum of...

 in the early 1990s, while changing the corporate name to Choice Hotels International. Friendship Inns were later absorbed into the Rodeway and Econo Lodge chains; no Friendship Inns exist today.

In 1997, the company introduced the extended-stay Mainstay Suites brand and the Choice Privileges frequent guest loyalty program. Mainstay Suites was branded as mid-priced extended stay hotels, franchised by Choice Hotels International. Mainstay Suites hotels provide comfortable and affordable accommodations and many amenities to extended stay travelers. A mix of one bedroom and studio units has been added to the prototype, creating a traditional residential image. Public space now includes a community room, guest laundry room, exercise room, and sundries shop all in the same general area. Suites include a fully equipped kitchen, a large walk-in closet, sofa bed, and work space for business travelers. A free continental breakfast is served daily. Guests also enjoy a manager’s reception at least once a week. In 2008, there were 37 Mainstay Suites hotels open in the United States and dozens more under development.

In 1992 Choice Hotels became the largest franchise hotel chain in the world.

In January 2005 Choice Hotels introduced a new upscale, all-suite hotel designed in contemporary style called Cambria Suites. The first Cambria Suites opened in Boise, Idaho

Boise, Idaho

Boise is the capital and most populous city of the U.S. state of Idaho, as well as the county seat of Ada County. Located on the Boise River, it anchors the Boise City-Nampa metropolitan area and is the largest city between Salt Lake City, Utah and Portland, Oregon.As of the 2010 Census Bureau,...

 on April 17, 2007. Approximately 20 Cambria Suites hotels are planned, with locations such as Bloomington, Minnesota

Bloomington, Minnesota

Bloomington is the fifth largest city in the U.S. state of Minnesota in Hennepin County. Located on the north bank of the Minnesota River above its confluence with the Mississippi River, Bloomington lies at the heart of the southern...

 and Savannah, Georgia

Savannah, Georgia

Savannah is the largest city and the county seat of Chatham County, in the U.S. state of Georgia. Established in 1733, the city of Savannah was the colonial capital of the Province of Georgia and later the first state capital of Georgia. Today Savannah is an industrial center and an important...

 scheduled to open in 2007.

In September 2005 Choice Hotels acquired the Suburban Extended-Stay Hotel chain, which consists of 67 extended stay hotels.

In 2008 the company introduced the Ascend Collection (formerly Clarion Collection), an elite upscale membership collection of historic, boutique and unique hotels.

In 2010 CEO Steve Joyce was featured on an episode of Undercover Boss

Undercover Boss

Undercover Boss is a television franchise series that has been released in multiple countries, originating in 2009 on the British Channel 4...

, a television program on CBS. He pretended to be an intern doing entry level jobs such as working the front desk, housekeeping, and maintenance work such as unclogging toilets.

Headquarters Relocation

In October of 2010 Maryland and Montgomery County officials announced that Choice Hotels International will move its headquarters from suburban Silver Spring to Rockville (about 20 minutes north-west of its current location) in 2013. Choice Hotels’ new headquarters will be located in Rockville Town Center.

In August 2011 Choice Hotels broke ground on its 197,866 square-foot corporate headquarters in Rockville.

Competitors

• AmericInn Hotels
• Best Western
  Best Western
  Best Western International, Inc. is the third largest hotel chain, with over 4,195 hotels in nearly 80 countries. The chain, with its corporate headquarters in Phoenix, Arizona, operates more than 2,000 hotels in North America alone. Best Western has a marketing program involving placement of free...
  
  
• Hilton Hotels Corporation
  Hilton Hotels Corporation
  Hilton Worldwide is a global hospitality company. It is owned by the Blackstone Group, a private equity firm. As of July 2011 Hilton brands encompass 3,750 hotels with over 600,000 rooms in 84 countries...
  
  
• Hyatt Hotels & Resorts
  Hyatt
  Hyatt Hotels Corporation , is an international operator of hotels.Hyatt Center is the headquarters for Hyatt corporation...
  
  
• Intercontinental Hotels Group
  InterContinental Hotels Group
  InterContinental Hotels Group plc is a global hotels company headquartered in Denham, United Kingdom. It is the largest hotels company in the world measured by rooms , and has over 4,500 hotels across over 100 countries...
  
  
• Marriott International
  Marriott International
  Marriott International, Inc. is a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott, the company is now led by son J.W. Marriott, Jr...
  
  
• Starwood Hotels & Resorts Worldwide
  Starwood Hotels & Resorts Worldwide
  Starwood Hotels and Resorts Worldwide, Inc. is a hospitality ownership and management organization, headquartered in White Plains, New York. One of the world's largest hotel companies, it owns, operates, franchises and manages hotels, resorts, spas, residences, and vacation ownership properties...
  
  
• Vantage Hospitality
  Vantage Hospitality
  Vantage Hospitality Group is the 12th largest Hotel and Hospitality Company in the world. Their brands include America's Best Value Inn, Canada's Best Value Inn, China's Best Value Inn and The Lexington Collection. The Best Value brands focus on value and cost-conscious customers, while the...
  
  
• Wyndham Worldwide
  Wyndham Worldwide
  Wyndham Worldwide is the holding company for Wyndham Hotels & Resorts, Group RCI and other lodging brands. It was spun off from Cendant Corporation in July 2006....
  
  

Brands

• Ascend Collection
• Cambria Suites
• Clarion Hotels
• Comfort Inn
• Comfort Suites
• Econo Lodge
• Mainstay Suites
• Quality Inn/Hotel
• Rodeway Inn
• Sleep Inn
• Suburban Extended Stay Hotel

External links

• Choice Hotels International
• Choice Hotels Canada
• Choice Hotels in France
• Choice Hotels in Germany
• Choice Hotels in Italy
• Choice Hotels Ireland
• Choice Hotels Australasia
• Choice Hotels UK
• Choice Hotels Europe
• Choice Hotels Scandinavia
• Choice Hotels International Analysis on Wikinvest