Choice Image Change Stirs Controversy

LAS VEGAS— At the recent Choice Hotels International Convention here a number of the brand’s new initiatives, including a new advertising campaign and a stricter adherence to quality assurance reviews, debuted. It was, however, the company’s new re-imaging program that received the most attention, and generated the most controversy, at the conference. The “proposed” re-imaging campaign for the Comfort Suites, Sleep and Quality brands was presented as a “done deal” throughout the conference, with the new logos being unveiled during the convention’s opening reception and most of the brand sessions focusing on executing the new logos. Yet a number of major franchisees, who are unhappy with the program, told HOTEL BUSINESS(r) that negotiations are far from over. “No one wants anything forced down their throats,” said Gary Tharaldson, CEO of Tharaldson Enterprises. “They’re sending a mixed message. Senior management is telling [the franchisees]that the re-imaging is not a done deal, but then they presented it as a done deal at the convention.” During Choice’s opening reception, Charles Ledsinger, president/CEO, and Steven Schultz, executive vp/domestic hotels, introduced the redesigned brand logos, stating that the images would be incorporated into every aspect of each brand’s identity from new hotel signs to global marketing. Many of the more than 4,000 franchisees in attendance were quick to embrace the re-imaging campaign but others were not. Approximately 10% of attendees at the opening reception walked out in protest as the new logos were unveiled, and according to Tharaldson, who led the march, the franchisees got the reaction they were looking for. “We walked out because we needed senior management to listen to us. They weren’t talking to their franchisees,” he said. “But we’ve got meetings planned with the senior management now.” During a meeting with the press, Ledsinger noted that the negative reaction from franchisees was unfortunate and that he’d “rather not have things played out during the convention. We like to hear what’s on the franchisees’ minds, but ultimately we do what’s best for the company.” The new logos, which drop the company’s highly recognizable sun image on select brands, were designed to create more distinction between the flags. However, some Quality, Comfort Suites and Sleep franchisees fear that the new images will create added competition from fellow hotels within Choice’s lodging family. “It’s acceptable to put a Sleep next to a Comfort Suites, but not a Sleep next to a Comfort Inn,” said Tharaldson. “We feel that consumers will just go to the new product instead of the old.” Because Comfort Inns will be keeping the traditional logo, franchisees worry that the brand may appear dated when compared to the new images, and ultimately cost them profits. Ravi Patel, president/CEO of Sree Hospitality, another Choice franchisee who walked out in protest, stated that the re-imaging program is not just creating new logos, but is “creating new brands, and is putting Comfort Inns at the bottom of the totem pole.” He added that a possible resolution to the controversy would be for Choice’s senior management to “get consent from owners regarding this issue.” The franchisees are also working to create a new owner’s advisory board that could supplement, or replace, Choice’s existing IOC (International Operators Counsel), which according to Tharaldson, never gave its support for the re-imaging. However, Ledsinger stated that during Choice’s road show, more than 25% of the owners that would be affected by the re-imaging were surveyed, and approximately 90% were positive about the new logos. But there are other concerns among the franchisees, including the lack of financial assistance from Choice to execute the re-imaging program, which would cost approximately $20,000 per hotel. “The problem is a lot of franchisees are concerned about the cost and whether there’s going to be a return on thei