SILVER SPRING, Md.
-- Choice Hotels International revamped the fee structure for its
Rodeway Inn brand including lowering the initial fee in an attempt
to bolster the budget brands competitive position in attracting
franchisees.
Under the new
structure, Choice instituted a flat fee of $25 per room, per month
for the first two years, followed by annual increases of $1 over
the next four years. Previously, Choice used a revenue percentage
fee structure.
Choice also reduced
the initial franchise fee to $5,000, which it said was
approximately $1,000 less than some competitors in the
segment.
Additionally, the
mutual windows have been reduced from five years to one year, to
allow franchisees greater flexibility in their businesses and
control over their franchising decisions.
We created this
structure to enhance the brands growth potential, which seems to be
coming to fruition based on strong developer interest thus far,
said Ron Burgett, vice president, franchise development for Choice
Hotels.
This new fee structure
gives the brand an edge over its competitors in the segment, said
Kevin Bradt, senior director, brand strategy for the Choice Hotels
economy brands. With its solid positioning in the budget hotel
marketplace and its affiliation with one of the worlds largest
lodging franchisors, Rodeway Inn is poised for significant
long-term growth.
Aimed at
value-conscious guests and specializing in the unique requirements
of the senior travel market, Rodeway Inns portfolio includes more
than 150 hotels across the U.S.
In addition to Rodeway
Inn, Choice Hotels International markets more than 5,000 hotels in
more than 40 countries under the brand names Comfort Inn, Comfort
Suites, Quality, Clarion, Sleep Inn, MainStay Suites, Econo Lodge,
Cambria Suites and Suburban Extended Stay.
To contact the
reporter who wrote this article, send e-mail to Michael Milligan at
[email protected].