Choice Hotels Explained: 5 Key Facts as it Goes After Wyndham

17.10.2023 - 17:43 / skift.com / Selene Brophy / Pat Pacious

Founded in 1939, Choice Hotels International has evolved from a small chain of roadside hotels to one of the world’s largest hotel franchisors. Tracing its roots to its original name, Quality Courts United, Choice has established itself as a prominent player through acquisitions and is looking to get bigger with its latest bid for Wyndham Hotels.

Choice took in revenue of $1.4 billion in 2022 and net income of $332 million. Here’s how that stacks up:

Pat Pacious has been with Choice since 2005. Before becoming CEO in 2017, he was the company’s President and Chief Operating Officer. He has expanded the company through acquisitions and brand development to grow beyond a core budget hotel base.

Pacious led Choice’s acquisition of Radisson Hotels Americas in 2022, the most significant transaction in Choice’s history. This deal added nine brands to Choice Hotels’ portfolio and further extended the company’s reach into the upscale segment.

“We’ve certainly developed a pretty strong capability within the company to rapidly integrate brands,” said Pacious in August when discussing quarterly results.

Choice Hotels operates a wide range of brands, with Comfort Inn its most significant in terms of room count. Its portfolio covers markets from economy to more up-scale full service.

Read More: Choice Brands Explained. 

In 2023, Choice Hotels Asia-Pacific launched Comfort Inn Clubarham and the Comfort Suites Clubarham Golf Resort properties under its comfort brand in Barham, New South Wales. 

In addition to Choice Hotels acquisition of the  Radisson Hotel Group Americas in 2022, the group acquired WoodSpring Suites in 2018, an extended-stay economy hotel brand. This acquisition added 240 hotels across the U.S. and tripled the number of extended-stay hotels in the company’s portfolio to around 350 properties.

The Maryland-based business operates more than 7,500 hotels with 630,000 rooms in over 46 countries and territories. As a major “asset-light” franchisor of hotel rooms in the U.S., almost 100% of its portfolio is under franchise agreements. Master franchising agreements account for 80% of its international rooms.

Marriott is the largest branded hotel in the world with more than 1.5 million rooms, followed by Hilton with under 1 million rooms. Wyndham has close to 850,000 hotel rooms, followed by Accor with a room network of 805,436 rooms.

The company’s loyalty program, which allow customers to collect points from each stay, as well as from spending through co-branded credit card, has grown an average of 10% since 2018. Choice Privileges also absorbed 11 million members with its acquisition of Radisson.