Choice Encores Cash-Back Incentive For Quality Conversions

SILVER SPRING, MD— Choice Hotels International is once again offering conversion-minded property owners an opportunity to cash in on a special cash-back incentive, to an extent repeating an initiative originally rolled out in the third and fourth quarters a year ago. Served up as a development incentive that— according to Choice Regional VP/Franchise Sales Fran Taloricco— can ultimately net as much as $85,000 in potential savings for certain Quality Inn and Quality Inn & Suites franchisees, expectations for the domestic program’s “encore performance” this year are heady, given the fact 2001’s version of this offering paid measurable dividends for the brand’s franchise-sales efforts. Moreover, Taloricco pointed out the current economic climate is such that conversions continue to provide what many view to be a more financially appealing way to tap into a revitalized and re-imaged Quality system. Accordingly, the Choice executive allowed the company is looking to add somewhere between 25 to 40 new contracts before this particular incentive runs its course (with Nov. 30 pegged as the termination date for this offer). “Historically, it’s been shown to be considerably less expensive to acquire an underperforming property and attach a strong national-brand identification to it than to develop a hotel from the ground up,” Taloricco noted. “Of course, that doesn’t mean we don’t welcome the conversion of ‘strong’ hotels as well to the Quality brand,” he added. Indeed, it would seem Quality executives had not been experiencing undue difficulty welcoming hotels at most any level into the brand’s fold of late. As of June 30, the Quality system constituted 445 U.S. properties out of Choice’s overall domestic hotel total of 3,394. Moreover, in terms of Quality-branded franchises sold, the company reported a 130% upturn for the period January – June 2002 as against the numbers reached for the corresponding sis months of 2001. Specifically, this year’s incentive is said to offer a rebate of initial fees, signage costs, logo and amenity-items costs, and fees associated with linkage to Choice’s central reservations system (CRS), with the cash reimbursement to be paid to the hotel owner upon opening of the “new” Quality-branded location. It was further noted all converting hotels must meet Quality’s brand standards in order to qualify for this incentive. As Taloricco explained, the Quality brand has always been a “quality” performer for Choice vis-à-vis franchise sales, in recent years trailing only Comfort in the multi-branded company’s family of hotel flags. Accordingly, he maintained this renewed focus on the Quality product is simply the recognition the time has come to take a fresh look and approach at one of Choice’s long-standing lodging leaders. Additionally, Taloricco contended it makes good sense to zero in on opportunities available through the conversion process, in light of the fact the company has seen roughly 80% of the additions to its system nationwide coming about through this avenue for expansion. Established more than 60 years ago, the midscale Quality brand is one of eight brands franchised by Choice… and the only one (at this time) to be offering such a development incentive.