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HOTELS Interview: Choice’s upscale outlook

Choice Hotels International, Rockville, Maryland, made a choice two and a half years ago to target primary markets with its upscale offerings Cambria Suites and Ascend Collection.

Ascend recently hit its 100th hotel property in the U.S., which Choice said signifies achieving critical mass for the brand. Meanwhile Choice is continuing to target primary urban markets in the U.S. for new Ascend and Cambria Suites properties and preparing an expansion effort overseas for the brands.

To find out more about Choice’s plans for the brands, HOTELS spoke with Michael Murphy, senior vice president, upscale brands, Choice Hotels International.

HOTELS: Which markets are you targeting for expanding Ascend and Cambria Suites?

Michael Murphy: Primary urban markets in the U.S. such as New York City, Chicago or Los Angeles. We have a big opportunity, as there is a lot of unmet demand in the primary urban markets.

HOTELS: Any overseas expansion plans for these brands?

Murphy: You’re going to see us eventually roll out into Canada, Mexico and Europe. There are historic, unique hotels in Europe for which the Ascend business model will be supportive. The number one difference from setting up deals in the U.S. versus Europe comes in the mindset of the owner. What we are finding out with our owners today is that they don’t have the longevity of ownership in the U.S. as the European has. So because of that, our approach in Europe will require a different sale, more of a relationship sales pitch rather than a traditional development sales pitch.

Another issue will be the channel management. Outside the U.S. there are independent hotels that are seeing a lot of their business come from an OTA, say 75% of it. That is a dramatic difference from the U.S., so I have to make sure our business model addresses that.

HOTELS: Which criteria determine if a hotel is best as an Ascend member or under the Cambria Suites brand?

Murphy: For Ascend, you have a developer or owner that has a viewpoint for the property of being independent and anti-establishment. I mean anti-establishment in a positive sense, as in being different from established brands. The properties must meet our historic, boutique and unique checkpoints for membership as well as meet a threshold for quality of service. The owners know that we can put together a distribution program better than they can on their own.

Cambria Suites is for developers and owners aspiring to serve the upscale traveler seeking a lifestyle travel experience. The Cambria customer is looking for more of a consistent, but authentic, experience.

The Cambria Suites prototype is 121 guestrooms, while Ascend member properties can range from 20 to 600 guestrooms.

HOTELS: How does Cambria Suites offer an authentic and consistent experience?

Murphy: There are several approaches to that. In the lobby we are opening up spaces and putting the bar forward as a coffee bar in the morning and a traditional bar at night, making it a very inviting area to see as you check in. In addition to microbrews and cocktails, we offer a contemporary American cuisine product focused on small plates that are fun, fresh and familiar. We have found that while consumers say they want healthy, what they really want is an incredible tasking food product, like the Green Chile & Egg Angus Burger.

HOTELS: How is the Cambria Suites banquet and events menu revamp going?

Murphy: In the hotel industry food and beverage has always struggled. We want to make F&B not just an amenity but a profit center — it cannot be a money-losing value proposition. To ensure this we found someone that has good F&B experience from catering, Chef Michael DeMaria, to build this contemporary American cuisine menu so we know the food costs before handing it to the hotel and can offer the same platform from the main kitchen to the bar.

HOTELS: Are there any other brand initiatives on the horizon for Cambria Suites?

Murphy: Rest assured, I am working on some initiatives that will be very impactful. In the fourth quarter of this year, there will be a major announcement.

HOTELS: How is the new Choice headquarters?

Murphy: We went from circa 1972 to 2030 overnight. The headquarters is not just futuristic-looking, it is also very collaborative, as you are forced to run into other team members all day long. The headquarters has been very good for attracting new talent, and we can’t wait until spring when we can use the outdoor fireplace in the back for team meetings.

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