Thai hospitality firm Minor International has set its sights on reaching nearly 1,000 hotels in the next five years – almost double its existing portfolio.
04.11.2024 - 22:47 / skift.com / Sean Oneill / Patrick Pacious
Choice Hotels International is doubling down on higher-end and extended-stay hotels as it pursues growth beyond its traditional roadside motel roots.
On Monday, the company’s executives outlined to analysts an expansion strategy centered on urban markets and longer-term stays. They want to shift their hotel portfolio mix to more “revenue-intense” properties — and they used the phrase “revenue intense” five times.
“99% of rooms in our global pipeline are in our more revenue-intense brands, which means that the pipeline represents a meaningful revenue per available room premium compared to our existing portfolio,” said president and CEO Patrick Pacious.
Executives aimed to de-emphasize the Rockville, Maryland company’s reputation as being about roadside motels and mid-tier properties. They are seeking to capture more higher-spending travelers and to shift to more efficient operational models.
Choice is betting big on its upmarket shift. The company’s development pipeline suggests future properties will have:
The strategy appeared to be resonating with hotel developers. Choice Hotels’ global pipeline grew 11% from a year earlier, and 99% of rooms in development are in what executives called its “more revenue-intensive brands.”
“When investors look for a proven prototype, a proven operating model, and a proven exit, we’ve been able to demonstrate that in very significant and robust ways,” said Pacious.
The company said its WoodSpring brand accounts for approximately two-thirds of all economy extended-stay construction that U.S. developers are currently undertaking.
1. Extended-stay properties are a major focus. Choice plans to grow this segment by over 10% year-over-year for five consecutive quarters. The company just hit 500 extended-stay hotels.
2. Business travel is showing signs of recovery. It’s reaching levels close to pre-pandemic 2019. Choice Hotels has seen particularly strong bookings from the transportation and government sectors.
3. Infrastructure spending is driving demand. Executives said that’s good for Choice because 38% of its properties are in the top 10 states receiving federal infrastructure funds. A reshoring of American manufacturing could create demand for extended-stay properties, Pacious said.
4. Live tourism is a key demand driver. Sports and entertainment travel is emerging as a significant driver, with college football realignment and major concert tours creating new travel patterns.
5. The company is riding demographic tailwinds. An aging population with significant wealth (35% of U.S. wealth held by those 55+) will prioritize travel.
6. Continued strength in road trips. About 5,000 Choice hotels are within a mile of highway exits.
7. American interest in travel abroad
Thai hospitality firm Minor International has set its sights on reaching nearly 1,000 hotels in the next five years – almost double its existing portfolio.
Take your pick: Basic economy, standard economy or…. something slightly better, but pricier?
The Indian hospitality sector recorded 10.8% year-on-year growth in revenue per available room (RevPAR) in the July-September quarter this year, according to real estate services firm JLL. The surge was driven by a rise in average daily rates (ADR) of hotels, as the occupancy levels remained similar to the year before.
Karisma Hotels & Resorts has unveiled its highly anticipated Black Friday Sale, offering travelers the chance to save up to 65 percent on all-inclusive stays at some of its most celebrated properties in Mexico, the Dominican Republic and Jamaica. The sale runs from November 18 to December 6, 2024, with travel dates extending all the way to January 2, 2027, making it an unmissable opportunity for those planning spring breaks, summer escapes or future holiday retreats. Participating properties include the family-favorite Nickelodeon Hotels & Resorts, the laid-back Margaritaville Island Reserve Resorts and the serene Azul Beach Resorts.
Nowadays it feels like honeymooners are venturing farther than ever, returning with tales of trekking in Mongolia or cruising to Antarctica. But for actor (and Mad Men alum) Christina Hendricks and Hollywood camera operator George Bianchini, who met on the set of the NBC series Good Girls, a destination close to home in Los Angeles was just what they needed. “To be honest, we had a bit of decision fatigue after the wedding,” says Hendricks. “We just wanted to go somewhere warm and 100 percent relax.” They let their close friends decide the destination for them—and the Esperanza, Auberge Resorts Collection, in Cabo San Lucas, did not disappoint. Here, the couple, who married in New Orleans in April, extol the virtues of the classic fly-and-flop getaway. Besides, who can resist rose petals and a seaside dinner lit up by fireworks?
It’s an early weekday morning in Charleston, South Carolina, and I’m discovering just how civilized coffee, minutes-out-of-the-oven scones, and fresh berries are as day brighteners. My breakfast is highlighted by the view of just-bustling East Bay Street in the Charleston Old and Historic District.
If there’s ever a hotel where you feel inspired to rush home and redesign your house, it’s this wine hotel in Argentina. SB Winemaker’s House & Spa Suites is a new hotel in the Mendoza province, one of the world’s most renowned wine regions. SB stands for Susana Balbo, the country’s trailblazing female oenologist. As if being the first female winemaker in Argentina wasn’t enough, Balbo diverged from the norm to specialize in luxury white wines. Together with her daughter, Ana Lovaglio Balbo, the “Queen of Torrontés” has expanded her kingdom with a wellness hotel celebrating all things Argentinian: wine, gastronomy, art, nature, and buon vivere.
Mark Keiser has a problem with luxury hotels: He thinks too many look and feel the same.
Indian luxury hospitality chain Oberoi Hotels and Resorts is set to open the first Oberoi Hotel in the United Kingdom. The Oberoi Group announced that the chain’s first property will be located in London’s Mayfair and will be a boutique hotel.
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