Expedia said it has stopped selling Choice Hotels properties because the two companies were unable to reach an agreement on a new contract.
Choice has some 5,000 hotels around the world operating under a variety of economy and mid-priced brands, including Comfort Inn, Comfort Suites, Quality, Sleep Inn, Econo Lodge, Rodeway Inn, Clarion and Cambria Suites.
Expedia said Choice’s contract expired more than two years ago but the two had been working under extensions.
"While it is not our policy to discuss the terms of contract negotiations publicly, many of the issues under discussion were principles which both parties had been operating under during the prolonged extension period, and are commonplace throughout the hotel industry," Expedia said in a statement.
"It is very unfortunate that Expedia and Choice were not able to come to an agreement on terms for working together going forward, especially considering the potential adverse effects that this may have on many of Choice’s individual franchisees."
In a statement, Choice said negotiations broke down after Expedia "looked to dramatically alter their agreement, asking for full control of our franchisees’ room inventory and pricing, including last-room availability."
"This would, in effect, no longer make Expedia a supplier but rather a revenue manager, which would not be in the best interest of our franchisees," the company said.
Choice said it was willing to resume negotiations with Expedia.
In the meantime, Choice said it is ramping up advertising and marketing campaigns, including emails to Choice Privileges members. It is also launching an advance-purchase rate program.
Expedia, meanwhile, has sent Choice franchisees a letter expressing regret about the decision and saying "Choice inaccurately lays the blame" on Expedia.
"We are disappointed that Choice has decided to take what amounted to good faith negotiations … and publicize them in such and inaccurate and misleading manner," the letter goes on to say.