Choice Hotels has signed a 15-year agreement with Suba Group of Hotels, which will now serve as the master franchise holder for 58 hotels in India.
These hotel properties are either open or under construction.
Suba Group also has the right to develop the Clarion, Quality, and Comfort brands of Choice Hotels in the country, reported LiveMint.
These franchised hotels will continue to stay under the network of Choice Hotels.
Choice Hotels Asia-Pacific CEO Trent Fraser said: “We’re excited to work with Suba Group of Hotels as we look to the next 15 years of portfolio growth in India. Suba has close to a 30-year history in the region and has built a strong local offering in the midscale and upscale markets.
“We’re confident in the collective value proposition this represents for current and prospective franchisees and are looking forward to welcoming many more properties.”
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According to Choice Hotels, the master franchise mode has worked well for it in other markets of Asia-Pacific region.
Suba Group of Hotels managing director Mansur Mehta said: “With this agreement, We will add 2200 keys to our existing portfolio of 2,900 keys, taking our position to 5,100 keys in 57 destinations across India.”
The hotel company, founded by Abubaker Mehta, operates under nine brands including Suba Hotels, GenX, RNB brands, reported The Economic Times.
For this transaction, JLL served as the advisor for Choice Hotels Asia Pacific.