Search

×

Choice ‘intends to own the upscale category’

A spike in direct bookings, increased RevPAR growth and touting an increased investment in luxury were top points of pride for Choice Hotels International on Wednesday at the company’s 63rd annual convention.

In the first three months of 2017, Choice saw 50% more executed franchise agreements in its pipeline. The company’s domestic RevPAR was also up 3.8% in the first quarter, compared to the industry average of 3.4%, according to data from STR.

According to Choice COO Pat Pacious, OTA growth rates have slowed significantly in recent months, a result of more direct bookings at ChoiceHotels.com. Member revenue growth for Choice Privileges is also up 17% from last year, Pacious said.

Moving upscale

While Choice recently announced a plan to open 56 new properties within its mid-level Comfort brand, it was the word “luxury” gracing everyone’s lips at the convention.

“Choice intends to own the upscale category,” declared Choice COO Pat Pacious of the company’s Cambria brand, in which Choice has invested some US$450 million to date – more than any other brand in its portfolio.

Pacious went on to say Choice currently has executed deals, open hotels and hotels under construction in 34 of the top 50 markets. He added that Cambria’s RevPAR jumped by more than 15% in 2016, a figure driven primarily by an increase of over 10% in rate.

The Cambria brand also landed two key partnerships: one with American Express Meetings and Events – a deal which officially closed Wednesday – and another with the culture-savvy Conde Nast, which will be promoting the brand through short videos and articles, as well as tapping into influencers who will put the word out on their own social media channels.

Choice’s Senior Vice President of Upscale Brands Janis Cannon was at the convention to walk attendees through exactly what a Cambria guest looks like, trotting out several women styled in capri pants and not-too-thick glasses – a kind of hipster J. Crew style.

The look was supposed to represent the target Cambria customer: a driven, young-ish, modern traveler who engages in what Cannon deemed “approachable indulgence.”

“These people don’t have unlimited funds for whatever they want,” Cannon said. “They must balance wants and needs, and they’re looking to land on the upside of ‘wants.’”

Community room at the new MainStay Suites prototype
Community room at the new MainStay Suites prototype

Mainstay prototype

On Thursday morning, Choice revealed a new MainStay Suites prototype. The midscale extended stay brand update incorporates an open-concept community room and outdoor living area, with spaces for guests to relax, socialize and work as well as sleeker amenities, modernized décor and new appliances in all suites, according Caragh McLaughlin, head of brand strategy, MainStay Suites.

The ‘Breakfast Room’ provides guests with the traditional continental breakfast, in addition to high-top communal tables with recharge capabilities for travelers. Key signature brand features were also updated, including the distinctive MainStay roof line, MainStay Marketplace and guest suites.
 
MainStay Suites is unveiling new on-property ‘Like Home’ programs to complement the new prototype, including a communal white board to inspire social engagement among guests, a lending library with frequently-requested items available for guests to borrow, and food and beverage updates in all properties.

The rest of the news

Though not by name, U.S President Donald Trump also got a mention from Choice CEO Steve Joyce, albeit only in reference to “the administration,” with Joyce saying he was hopeful the president would push forward a pro-business agenda – including income tax reform and a continued course on the overtime salary threshold (which could have expanded by millions the number of workers who would be eligible for time-and-a-half overtime pay, but which was shot down by a federal judge in Texas in November).

The company, which also just rolled out a revamped app focused on personalization, also launched a new direct booking campaign at the convention called “Badda Book, Badda Boom,” which comes in tandem with a newly revamped Choice Privileges rewards program.

Comment