Up 19% Over the Same Period in 2004
|Silver Spring, MD (July 27, 2005) – Choice Hotels International (NYSE:CHH)
signed 276 new franchise contracts in the first six months of 2005 – a
19 percent increase over the same time period in 2004 and the company’s
strongest first half of the year for system growth since going public in
More than a third of the new contracts signed were for new construction projects, up from 26 percent over the same time period in 2004 and a testament to developer confidence in the ROI potential for Choice Hotels’ Comfort Suites, Sleep Inn and MainStay Suites brands.
Contracts to build Cambria Suites, the all-new construction upscale brand launched in January, increased to six, with properties slated for Boise, ID; Phoenix, AZ; Savannah, GA; Somerset, NJ; Green Bay, WI; and Akron-Canton, OH.
The company’s conversion brands also experienced significant growth in the first six months of 2005. In particular, Quality, Econo Lodge and Rodeway Inn brand hotels saw double-digit percent increases in growth year-to-date versus the same period in 2004.
“2004 was a phenomenal year for our system and its brands,” said David Pepper, senior vice president, franchise development for Choice Hotels. “The challenge for our franchise sales team, following such a successful year, was that the bar was set pretty high going into 2005. Maintaining the pace wasn’t enough; we needed to accelerate the rate at which we brought high quality hotel product into our system.
“Based on these midyear numbers, and fueled by outstanding brand performance and strategic organization of the sales force under the leadership of Vice President Ron Burgett, we have already broken last year’s records,” Pepper said. “Clearly, the profit potential represented by our brands is resonating with developers and owners of conversion projects alike.”
Worldwide lodging franchisor Choice Hotels International (NYSE:CHH) markets more than 5,000 hotels in over 40 countries under the brand names Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, MainStay Suites, Econo Lodge and Rodeway Inn. The company's newest brand, Cambria Suites, launched in January 2005.
|Also See:||Choice Hotels Reports Full Year 2004 Net Income of $74.3 million Compared to Prior Year Net Income of $71.9 million; Executes 552 New Domestic Hotel Franchise Contracts / Hotel Operating Statistics / February 2005|
|Choice Hotels Adds 41,000 Franchise Rooms in 2003; Reports 342 Conversions and 128 New Construction Contracts / January 2004|