Choice Hotels continues major company overhauls

Choice Hotels International’s Q3 2015 results show a company reaping the benefits of the strong hospitality sector, seeing both high revenues in the short term and good numbers reflecting the planned transformation of its Comfort Inn and Comfort Inn & Suites brands.

The company is currently undergoing a rejuvenation of the Comfort Inn and Suites brands, which includes a systematic removal of under-performing hotels that will reach approximately 600 by year’s end, according to Steve Joyce, the company’s president and CEO, in a press release.

“We’re seeing strong development interest in these brands as we implement the brand strategy to renovate, remove or reposition properties from the system,” Joyce said.

The Comfort Inn and Suits “rejuvenation,” as the company’s executives called it, has helped drive a 40 percent increase in new domestic hotel contracts in total and a 50 percent increase for the Suites brand in particular. The new-build Comfort hotels also are “larger and more revenue-intensive,” Joyce added. The brand’s revenue-per-available-room index has improved for 11 consecutive months as a result.

At the same time, Choice executives have removed hundreds of under-performing Comfort properties from the system to raise the overall quality of the existing stock. That number will reach 600 by year’s end.

The company also noted significant momentum in the upscale segment during the quarter. Launched in 2005 originally as Cambria Suites, the brand had difficulty gaining traction, especially in the global recession. In 2014, executives announced a retooling to broaden its appeal to millennials and business travelers.