Choice Hotels International Inc has revealed a year of robust growth and higher-than-expected brand expansion in its revenue-intensive segments in 2023.
Choice Hotels reported a 1.4% surge in the number of hotels within its domestic upscale, midscale and extended stay brands.
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The integration of the Radisson Hotels Americas brands was seamlessly accomplished, further contributing to overall success.
The growth of Choice’s legacy brands resulted in a 2% increase in domestic properties within these lucrative segments. The international portfolio also experienced a 2.6% growth in the number of hotels.
Extended stay leadership in 2023
Choice Hotels extended its dominance in the extended stay sector, opening 61 extended stay hotels in 2023.
Suburban Studios achieved a single-year record by launching 25 hotels, including its 100th property in Bloomington, Minnesota. WoodSpring Suites ranked as the number one economy extended stay brand, also set a record by opening 24 new hotels.
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By GlobalDataEverhome Suites, Choice’s new construction extended stay offering, expanded its pipeline to 66 properties, with 16 hotels currently under construction.
Upscale segment advancements during the year
Choice continued its growth in the upscale segment in 2023, opening 19 properties in its Ascend Hotel Collection.
The successful migration of Radisson Americas hotels to its central reservation system contributed to an 8% year-on-year increase in revenue per available room for the Radisson upscale brand.
Cambria Hotels expanded its portfolio to 74 properties, earning the number one upscale brand title in the JD Power 2023 North America Hotel Guest Satisfaction Index Study.
Core brands remained in focus
In 2023, Choice concentrated on the continued growth of its core brand offerings. Comfort opened 33 new hotels, the highest in a single year since 2019.
Quality Inn had 35 openings and awarded 64 franchise agreements.
Choice introduced a next-generation, design-forward Sleep Inn prototype, offering expanded wellness features, modernised guestrooms, open and airy lobbies, improved breakfast areas and designated outdoor spaces.
Successful integration sets stage for new growth
Choice Hotels showcased its expertise by successfully integrating the Radisson Hotels Americas business in 2023, within a year of the transaction.
This digital migration led to substantial increases in total digital traffic, bookings and booked revenue.
This performance boost attracted new development commitments, with 10 new franchise agreements for the Country Inn & Suites brand awarded in December 2023 alone.
International expansion throughout the year
Choice Hotels also achieved international success in 2023, expanding its global footprint across various markets.
The company extended its master franchise agreement with Strawberry, secured a distribution partnership with Sercotel, signed an agreement with Zenitude Hotel Residences and acquired the franchise rights for City Edge Apartment Hotels in Australia.
Choice also fully integrated Radisson Americas hotels in the Caribbean, Canada and Latin America.
Poised for growth in 2024
With a global pipeline of 1,032 properties, Choice Hotels is set to build on its best-in-class hotel conversion capability.
In 2023 the company awarded 133 franchise agreements that opened within the same year, indicating a strong foundation for accelerated development growth and performance in 2024.
