NEW ORLEANS- Choice Hotels International has established a mezzanine fund it will use to stimulate development of its brands in urban markets with high barriers to entry. Choice President/CEO Charles Ledsinger said that sliver equities may also be considered as an incentive for developers.
We have opportunities in gateways cities to develop our brands, Ledsinger said at Choice s annual brand conference held here last weekend. We have done a good job in New York City, but we have opportunities in other cities. Ledsinger said Choice is looking at using its balance sheet more in 2001 to grow its business.
Choice said it is about to receive a $140 million cash infusion from a receivable note that comes due now, and that the money could be used to pay down debt or repurchase stock. (11/19/00)