Choice Inks HSI Deal With Two Vendors

SILVER SPRING, MD— After years of research, and a failed attempt to develop its own high-speed Internet (HSI) solution, Choice Hotels International has inked agreements with two in-room technology providers— Safety NetAccess (SNA) and Viator Networks. Per the agreements, both companies will become endorsed vendors to Choice’s 3,300 domestic Comfort Inn, Comfort Suites, Clarion, Quality, Econo Lodge, Sleep Inns, Rodeway Inn and MainStay Suites franchisees. “As opposed to all those who have come and gone, these vendors provide a cost effective solution to our properties,” said Daniel Rothfeld, svp/partner services for Choice, referring to the ‘pay per play’ HSI model that ultimately proved unsuccessful and left many hotels without complete installations. However, Choice’s proprietary solution, Stay Connect, which called for in-room computers in a percentage of hotel guestrooms, also proved to be unprofitable and was recently discontinued. “Choice’s [original]program was geared towards having hardware in the guestrooms… Eventually we realized that we’re a hotel company, not a technology company. The economics based on that model didn’t make sense when we rolled it out and ultimately we walked away from it,” said Rothfeld. He noted that with most business travelers bringing laptops these days, the best strategy for its hotels was to provide a low cost, plug-and-play model, however, SNA does also offer an in-room computer solution for interested franchisees. Other than the added equipment solution at SNA, the two programs are very similar, he said. Both offer: hardware and software; customized, turnkey programs to fit each property’s specific needs; proven track record of installations; plug and play usage; purchase or leasing options; straightforward installations, including use of existing wiring and connectivity when possible; low cost; franchisee ownership of equipment and broadband connectivity. They also offer training and 24/7 technical support for guests and franchisees, he said. Most importantly, the suppliers offer solutions that can be offered at no cost to guests or at a low, daily fee, which offers franchisees added flexibility. “The cost can be free or an added charge depending on the market,” he said, adding that a fee model will be determined by the individual hotels. “It’s a local decision. The owners are really the best judges in this situation,” he stated. Additionally, he noted that a limited service hotel with 80 rooms should only see about a $15,000 installation cost with either vendor (excluding variables based on the individual infrastructure of a property or any recurring charges). “If it can be installed for $15,000 than there are ways to charge for the service without a $10 fee,” he stated, noting that in some situations a lower fee would be more appropriate given the brands’ low-end rates. Currently, the new programs have each been rolled out in two Choice hotels for beta testing, and “at this stage installation is optional for owners,” said Rothfeld.