Choice Hotels 1998 Annual Report - Highlights

The Value Is In Our Name Choice

There are three basic reasons for a hotel franchisor to offer a portfolio of different brands: (1) to serve different customer demographics and lifestyles; (2) to serve different travel occasions; or (3) to effectively do a combination of both.

For developer Greg Averbuch, it all comes down to synergy. Averbuch, president of Summit Management Corp., uses the word a lot when describing the Sleep Inn and MainStay Suites hotels he plans to operate side by side in Atlanta.
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Choice does both. After all, it's in the name. The company offers both traveling consumers and hotel franchisees the best and most varied choice of lodging in the industry. From the economy segment to the upscale market, diverse brands provide more than 110 million available room nights a year around the globe. Beneath the Choice identity are seven distinct hotel brands, each serving a particular segment of the broad travel industry. At a time when the industry is undergoing consolidation, new brands are being unveiled and old brands are being revamped, the ability to differentiate brands becomes more critical.

In the fiercely competitive market for guests visiting Colonial Williamsburg, Va., the 118-unit Quality Suites hotel has gained a decisive advantage by offering two-room wuites with separate living and sleeping areas.
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"We must trade on our brand diversity," said Wells. "We must continue to create an understandable and unique identity for each of our brands by focusing on offering guests clear choices."

When the Rodeway Inn Airport East of Tempe, Ariz., recently lost its general manager, a Choice field representative worked with the new manager to make transition.
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Brand standards and quality are central to the drive for better brand identity. Choice continues to raise the bar for its franchisees in terms of quality assurance and guest satisfaction. As standards tighten, under-performing hotels will leave the system through ter-mination. The result will be more consistent quality within brands, which will better protect the individual franchisee's investment.

The drive to build value continues. Block by block, the foundation for an industry leader gets stronger. Each day Choice and its associates create new opportunities for future success.

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