Choice Hotels International CEO Pat Pacious during the “Committed to the Core” brand session at its 68th Annual Convention.
Over 6,600 attendees gathered for Choice Hotels International’s 68th Annual Convention at Mandalay Bay in Las Vegas, Nevada. This year’s agenda was themed “Next Level” after the company’s marketing strategy and offered a comprehensive array of educational sessions, brand programs, and networking opportunities. Within the past five years, Choice Hotels has experienced a surge in revenue and membership expansion, driven by the integration of Radisson Hotels Americas onto its digital platforms. During that same time, the company has grown from 12 brands to 22 across various segments and 40 million to 65 million members across its Choice Privileges loyalty platform.
During the convention’s opening session, Pat Pacious, CEO of Choice Hotels, said, “Together, we have achieved a new level of success and positioned our brands to capture even more of the growing demand for travel in the coming years. Now, when I look at how far we’ve progressed together, I have never been more optimistic about the future of Choice Hotels.”
Pacious also emphasized Choice Hotels’ role in driving innovation, brand renewal, and franchisee retention. He continued, “When we look to the future, we see a portfolio of brands that are getting stronger together. By being good stewards of our core brands, we will continue to drive our performance in midscale. By investing in updates, we will continue to be challenger brands to watch. And by innovating from the front, we will continue our leadership position in extended stay.”
Marketing Minded
At the beginning of 2024, Choice Hotels updated its marketing strategy, positioning itself to reach and meet its target audiences in its digital locations. For example, younger guests consume media through social channels and watch subscription-based content rather than traditional television.
Noha Abdalla, chief marketing officer, noted that Choice Hotels’ marketing is “focused on three key areas. The first is driving awareness of Choice Hotels and the family of brands we have. The second is around driving more direct revenue to our franchisees and their hotels. And the third is around this idea of driving our repeat business.”
Choice Hotels is pushing forth those strategies through its largest-to-date marketing campaign, which includes advertisements in partnership with actor and comedian Keegan-Michael Key. The multifaceted campaign strives to be relatable for its consumers and encourages them to book directly. The campaign has been viewed one billion times since launch, and Choice Hotels predicts it will be viewed eight billion times by year-end.
“Research shows that consumers—even younger ones—increasingly make purchasing decisions while on social media, so that’s where we are, too,” Abdalla said. “We kicked off the campaign in January, sooner than we’ve ever had in the past, to make sure your brands are top of mind with consumers all year long.”
Pacious added, “Our marketing is moving to the next level. That’s the reason we picked [the ‘Next Level’] theme. A lot of the partnerships and relationships that we have developed are really a result of this expansion. So, that’s a key aspect of the growth that we’ve been going through as a company.”
Restructure and Digital Revamp
Since August 2023, Choice has focused on a corporate transition, ensuring the Radisson Hotels Americas integration onto its central reservation system was seamless and that its employees became well-positioned to generate success for the company’s brands.
Internally, this reorganization positioned the company around three key segments: upscale, core brands, and extended stay. Pacious explained, “When you’ve gone through a transformational acquisition like we have, it requires a new organizational structure to get closer to the customer—that was the purpose of it. And so, it’s allowing our teams to interact more closely with the extended-stay owners and the upscale owners.”
Part of this restructure included the repositioning of the Park Inn by Radisson brand. Choice Hotels believes this brand is best positioned within the premium value segment to target younger consumers who want experiential travel at an affordable price. With just four hotels currently open in the United States, this brand will serve primarily as a conversion opportunity for franchisees.
Stemming from this transition, Choice’s digital platforms, including its website, are undergoing a significant transformation with a new digital interface that updates its usability and brand visibility.
With the growth of the Choice Privileges platform, updates are coming down the pike. Some of those updates will include a variety of new options for members to redeem points and have exclusive experiences. “We’re working very closely with the section leaders and brand leaders to ensure that Choice Hotels and a lot of digital footprints can actually identify with the brand,” said Robert McDowell, chief commercial officer, Choice Hotels.
Future Growth
As one of its key focus areas, Choice Hotels understands that the extended-stay market is saturated, but the company strives to stand out in the pack. Choice opened 61 new extended-stay hotels in 2023, and its 500th extended-stay hotel is set to open this year.
Looking ahead, Choice Hotels remains committed to driving revenue growth for its stakeholders. The company has listened to the specific needs of its franchisees and implemented brand updates that correspond with what they want most. Doubling down, Choice’s marketing efforts aim to increase visibility for its variety of brands and add profitability generators for franchisees.
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