Choice Hotels International, 1995. Case Report

Executive Summary Choice Hotels International, Inc., was the second-largest hotel franchising company based in the United States in the year of 1995. It had gained much reputation in the budget market and in its franchising system for quick penetration of the market. In 1995, the group was managing 7 brands, namely Clarion, Quality, Comfort and Sleep under the Sunburst Group; and Econo Lodge, Rodeway and Friendship under the Economy Group. Choice nearly doubled its net income from 1990 to 1994 …

…With this brand equity, Choice would excel in the market with a projected net income of $125 million in 1997 and a larger market share. With also successful implementation of other strategies, the conflict between Choice and its franchisees would also be solved and more loyal and satisfied franchisees, customers and shareholders would follow. With all these in hands, Choice can expand into the segment of luxury resorts and other possible businesses to build a hospitality empire.