2003 Annual Report

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A CHOICE YEAR IN REVIEW




January Choicehotels.com is revamped to offer visitors to the Web site enhanced electronic brochures for each property and a downloadable hotel directory.
  Southwest Airlines becomes the newest partner in Choice’s airline miles program, increasing the number of airline partners to six.

February Choice signs a three-year agreement to be the official hotel partner of Little League Baseball.
  The company launches its spring promotions featuring the airline miles program and offering Triple Miles to guests staying at all Choice hotels in the United States and the Caribbean.
  Choice acquires the remaining 45% interest in Flag Choice Hotels of Australia.
  The company receives a Workplace Excellence Award and “Excellent Place to Work” designation from the Maryland Work-Life Alliance.

March Choice introduces the Best Choice e-rate Guarantee to provide customers with the best rate online for all of its domestic brands.

April Choice renews its commitment to military families by extending government military rates to all active, retired and dependent government and military travelers for all domestic Choice brand hotels.
  Choice and Arnold Worldwide/Washington, its agency of record, receive the Golden Bell Bronze Advertising award from the Hospitality Sales & Marketing Association for the “Thanks for Traveling” campaign from 2001–2002.

May Choice’s 49th Annual Convention for franchisees in Orlando features an inspiring address by former President George H. W. Bush and entertainment by Bill Cosby.
  At the convention, Choice announces a brand extension of the full-service Clarion brand called the Clarion Collection, which will feature unique historic boutique hotels.
  Choice introduces more cost-effective new construction prototypes for the Sleep Inn and Comfort Suites brands to help spur brand growth.

June Choice partners with two e-wholesale Web sites, Travelocity and Travelweb, to give franchisees preferred placement on both Web sites and their affiliate sites.
  Summer promotions are launched, with midscale brand hotels offering weekly chances to win free gas and a Jeep Liberty vehicle and economy brand hotels offering a $50,000 grand prize in a Fast Cash sweepstakes.
  The company extends the benefits and rewards of the Choice Privileges program to guests at MainStay Suites brand hotels.

July Choice Hotels Canada re-introduces the “Thanks for Traveling” campaign to assist Canadian hotels facing difficulties in attracting business because of the concerns related to Severe Acute Respiratory Syndrome (SARS) in that country.
  For the second quarter in a row, the Sleep Inn brand is named the top economy brand by Market Matrix.

August Choice announces it will initiate a cash dividend on its common stock, beginning with the fourth quarter of 2003.

September Choice begins its fall promotions by offering guests at its midscale brand hotels a free night for every two stays and, at its economy brand hotels, guests receive double EA$Y CHOICE stamps for each night’s stay or the chance to redeem the stamps for airline miles.

October Choice Hotels International is named one of “50 Great Places to Work” in the greater Washington D.C. area by Washingtonian magazine.

November Choice announces it will receive a payment in excess of $45 million from Sunburst Hospitality as prepayment of an outstanding note.
  Choicehotels.com is upgraded to include localized Japanese content, giving Japanese-speaking travelers access to information about Choice and its brands. The company also signs a 20-year master franchise agreement with Nippon Choice K.K. of Japan, opening the way for rapid development in that country.

December Choicehotels.com is ranked number one in transactional reliability among hotel company Web sites by the Gomez Performance Index.
  The Best Choice e-rate Guarantee is extended to all Choice hotels worldwide, encompassing more than 4,800 properties around the globe.


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