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Choice Hotels International SWOT & PESTLE Analysis

ID : 52951753| Jun 2021| 21 pages

COMPANY PROFILE -Choice Hotels International

Business Sector :Hospitality

Operating Geography :United States, North America, Global

About Choice Hotels International :

Choice Hotels International, Inc., headquartered in Rockville, Maryland, is a hospitality franchisor. The business operates a variety of hotel brands, from premium to budget. Quality Courts United, Inc. was established in 1939 as a nonprofit referral chain of seven motels in Florida. In 1990, the parent company was renamed Choice Hotels International. The choice family of hotel brands offers business and leisure travellers a wide variety of high-quality accommodation options from limited-service to full-service hotels in the luxury, midscale, extended stay, and economy categories, with more than 7,000 hotels totalling more than 590,000 rooms in over 40 countries and territories. The award-winning Choice PrivilegesTM loyalty programme provides members with a variety of perks, from daily discounts to once-in-a-lifetime experiences. Cambria®Hotels & Suites®, Comfort Inn® and Comfort Suites®, Sleep Inn®, Clarion® hotels, Clarion Point® hotels, Quality Inn®, Econo Lodge®, and Rodeway Inn® hotels are among the company's hotel brands. Vacation Rentals by Choice HotelsTM is a new service offered by the company. Hotels under the Woodspring Suites®, MainStay Suites®, and Suburban Extended Stay Hotel® brands that make its consumer feel at home while away for longer periods. In March 2021, Cambria Hotels, a luxury hotel chain owned by Choice Hotels International, Inc., has announced a new partnership with Cambria Estate Winery, a division of Jackson Family Wines. Cambria Estate Winery's Julia's Vineyard Pinot Noir and Katherine's Vineyard Chardonnay will be available in Cambria Hotels restaurants and bars throughout the world, as well as in the self-serve marketplace, beginning in June 2021.
Choice Hotels International's Unique Selling Point or USP lies in it being one of the world's largest and most profitable lodging franchisors, with a focus on affordability and high-quality service that provides a unique customer experience. Choice Hotels International's mission statement reads, "Connect the world through the power of hospitality. We bring together the people, brands and technology that enable the success of others—welcoming every guest, every partner, everywhere their journey takes them".

Choice Hotels International Revenue :


USD 774 million - FY ending 31st December 2020 (y-o-y growth -30.57%)
USD 1115 million - FY ending 31st December 2019

Competitive Analysis of Choice Hotels International

SWOT
PESTLE

The SWOT analysis for Choice Hotels International is presented below in a matrix followed by the detailed analysis report

Strengths
Weaknesses
1. Huge portfolio of hotel franchise with operation in 40 countries
2. Franchise-focused business model providing a level of resiliency during downturns
3. Increasing market share as a leader in the upper and midscale and midscale segments
4. Best in industry customer perks & reward program
5. Provider of widely used Cloud based property management system
1. Lawsuits from hotels for allegedly unlawful practices could hamper business reputation
2. Unsecure databases exposing company to hackers
Opportunities
Threats
1. Hotel industry past growth trends and forecasted high demand post pandemic
2. Increasing tourism to up-and -coming destinations
3. Growing wildlife tourism could open a new line for hospitality industry:
4. Americans showing a continued preference for road trips
1. Increasing competition from existing and new entrants in hospitality
2. Technology giants are reinventing hospitality with technology disruptions
3. Hospitality industry facing labor shortage
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Choice Hotels International

Strength

1. Huge portfolio of hotel franchise with operations in 40 countries: Choice hotels Inc. rolled into operations in Maryland, US in 1939 and soon expanded its footprint worldwide in 40 countries, with franchise of 7118 properties which provides 597,018 rooms for its customers. In addition to this upcoming 1035 hotels are under construction that will further add 85,129 rooms to the Choice Hotels portfolio. Through franchises, Choice Hotels provides multiple range of lodging services to customers, from luxury, comfort rooms, to extended stay and economy stay. These services are offered with multi brand portfolio that consists of prominent brands such as Ascend Hotel collection, Comfort, Clarion, Cambria, Mainstay suites, and wood spring suites, etc. With this huge and diverse portfolio, Choice Hotels is able to provide excellent customer service to its clients.

2. Franchise-focused business model providing a level of resiliency during downturns: Choice Hotels has created operational excellence with its unique low-cost franchise-based business model. It allows them to operate profitably, leverage design and procurement expertise, and preserve resiliency with their mutual agreement contracts of multi decade tenures. It has helped them build resilience during the COVID-19 pandemic. Each franchise owning only 1 hotel allows them to diversify risk across a number of owners. The fees and royalty acquired from franchises allows them to invest into new age technology. During the pandemic 90% of franchise were operational and had very low debt cycles, hotels were classified as SME allowing them to secure govt assistances. Choice Hotels was able to provide its expertise to franchise in govt assistance programs, offer training opportunities to franchise to access new capital, rendering flexible deadlines and reducing the amount of fixed fees, during the pandemic.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Ascend Hotel Collection
  • Cambria Hotels
  • Comfort
  • Sleep Inn
  • Quality Inn
  • Clarion
  • MainStay Suites
  • WoodSpring Suites
SWOT & PESTLE (combined)
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?

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References used in Choice Hotels International SWOT & PESTLE Analysis Report

1. CONNECT THE WORLD THROUGH THE POWER OF HOSPITALITY - https://www.choicehotels.com/en-uk/about
2. Explore Choice Hotels Europe - https://www.choicehotels.com/en-uk/about/brands
3. Get Rewarded with Choice Privileges - https://www.choicehotels.com/en-uk/choice-privileges
4. Investor Presentation May 10, 2021 - file:///C:/Users/saeed/OneDrive/Desktop/CHH%20Investor%20Presentation%20May%202021_vF.pdf
5. Choice Hotels franchisees file lawsuit alleging discrimination, unlawful business practices - https://www.bizjournals.com/washington/news/2020/06/17/choice-hotels-franchisees-file-lawsuit-alleging.html
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Choice Hotels International SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/choice-hotels-international/ [Accessed 13 Jun, 2021].

In-text: (SWOT & PESTLE.com, 2021)

Copyrights and Disclaimer

Choice Hotels International SWOT and PESTLE Analysis has been conducted by Rakesh Shewale and reviewed by senior analysts from Barakaat Consulting.

Copyright of Choice Hotels International SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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