Choice Hotels To Reposition Sleep

NEW ORLEANS— Choice Hotels International has set an aggressive repositioning program for its Sleep product, executives told franchisees at the recent 46th Annual Conference, held here. “Sleep is at a critical juncture in its business cycle,” said Thom Hall, vp/emerging brands for Choice. “We have to accelerate the growth of the brand; 258 properties are not enough to compete with Hampton Inn, Holiday Inn Express, La Quinta and Fairfield Inn. The brand awareness is static and below that of our competitive set.” Brand Strengths Hall did point out that the brand’s strengths are significant in that it is comprised of all new-construction products, and has a high level of consistency. And it has a strong consumer following, becoming fiercely loyal to Sleep once they try it, he said. Plans are to make the brand’s development model more competitive to developers, said Hall, who also oversees the Mainstay brand. “It presently doesn’t achieve a competitive return on investment.” Midscale Value Is Key Repositioning efforts will place Sleep in the middle of the midscale tier, and will be promoted as a value proposition for business travelers. The brand has become more skewed toward leisure travelers, said executives, a trend they would like to shift back to the business market. Target ADR has been set at $65, $10 above what Sleep is currently getting, he noted. “Sleep will be Choice’s primary growth vehicle over the next few years,” he said. “The repositioning will not be easy, but it will happen.” Choice President/CEO Charles Ledsinger noted that the company needs to not only get a better rate out of the Sleep brand, it also needs to locate it “in better areas.” He said that Sleep has done very well when it goes in areas with midscale brands, he said, but has a tougher time pulling rates when it goes in against “pure budget properties.” Plans include doubling the number of Sleep properties by 2005. Additionally, Choice will raise the quality assurance scores the brand must have to pass inspection.