Choice Hotels International, Inc. (CHH) Business Model Canvas

Choice Hotels International, Inc. (CHH): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

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Choice Hotels International, Inc. (CHH) Business Model Canvas

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En The Dynamic World of Hospitality, Choice Hotels International, Inc. (CHH) ha creado magistralmente un modelo de negocio que transforma el paisaje hotelero tradicional en un ecosistema de franquicias flexible e innovador. Al aprovechar estratégicamente múltiples marcas, tecnología de vanguardia y un programa de lealtad robusto, CHH se ha posicionado como una potencia que ofrece un valor incomparable tanto para los viajeros como para los propietarios de hoteles independientes. Este lienzo de modelo de negocio revela cómo la compañía ha creado ingeniosamente una plataforma de ganar-ganar que abarca diversos segmentos de clientes, ofrece una calidad consistente y genera múltiples flujos de ingresos en un mercado cada vez más competitivo.


Choice Hotels International, Inc. (CHH) - Modelo de negocios: asociaciones clave

Acuerdos de franquicia con propietarios de hoteles independientes

A partir de 2023, opera Choice Hotels 7,642 hoteles a través de múltiples marcas, con 98% de las propiedades franquiciadas. El número total de acuerdos de franquicia incluye:

Marca Número de hoteles Porcentaje de franquicia
Comodidad 2,217 29%
Calidad 1,576 20.6%
Sleep Inn 631 8.3%

Asociaciones estratégicas con agencias de viajes en línea (OTA)

Choice Hotels tiene asociaciones con OTA importantes que incluyen:

  • Grupo de Expedia
  • Booking.com
  • Priceline

En 2022, Los canales digitales representaban el 49% del total de reservas.

Proveedores de tecnología para sistemas de reserva y gestión

Las asociaciones de tecnología clave incluyen:

  • Corporación sable
  • Ópera de Micros Systems
  • Oracle Hospitality

CO COMANDO PARTISTAS EN

Choice Hotels mantiene una asociación de tarjeta de crédito de marca compartida con:

  • Banco de barclays

El elección privilegios que se generó MasterCard $ 94.5 millones en tarifas de regalías en 2022.

Relaciones con programas de viajes corporativos

Las asociaciones de viajes corporativos incluyen acuerdos con:

  • American Express Global Business Travel
  • BCD Viajes
  • CWT (Carlson Wagonlit Travel)

Viajes corporativos y grupales representados Aproximadamente el 15% de los ingresos totales de la habitación en 2022.


Choice Hotels International, Inc. (CHH) - Modelo de negocio: actividades clave

Gestión y apoyo de franquicias

A partir de 2024, Choice Hotels administra 7,324 hoteles en 15 países con 604,000 habitaciones de hotel totales. La compañía admite 11 marcas de hotel distintas a través de operaciones integrales de franquicias.

Métricas de apoyo a la franquicia 2024 datos
Propiedades franquiciadas totales 7.324 hoteles
Presencia geográfica 15 países
Habitaciones de hotel totales 604,000 habitaciones

Desarrollo y marketing de la marca

Choice Hotels invierte $ 45.2 millones anuales en estrategias de marketing y desarrollo de marcas.

  • Presupuesto de marketing digital: $ 18.7 millones
  • Campañas de posicionamiento de marca: $ 12.5 millones
  • Inversiones de investigación de mercado: $ 14 millones

Estándares de propiedades y control de calidad del hotel

La compañía mantiene rigurosos procesos de control de calidad en su red de franquicias.

Métricas de control de calidad 2024 estándares
Inspecciones de propiedades anuales 100% de las propiedades franquiciadas
Puntuación mínima de cumplimiento de la marca 85/100
Presupuesto de mejora de la calidad $ 22.3 millones

Gestión del sistema de reserva y distribución

Choice Hotels opera una sofisticada plataforma de reserva digital que procesa 62.4 millones de reservas anualmente.

  • Transacciones de plataforma de reserva en línea: 78% de las reservas totales
  • Porcentaje de reserva de aplicaciones móviles: 42% de las reservas en línea
  • Inversión anual de infraestructura tecnológica: $ 37.6 millones

Administración del programa de fidelización del cliente

El programa de fidelización de privilegios de elección administra 26.3 millones de miembros activos en 2024.

Métricas del programa de fidelización 2024 datos
Totales miembros activos 26.3 millones
Presupuesto anual del programa de fidelización $ 16.7 millones
Tasa de retención de miembros 68%

Choice Hotels International, Inc. (CHH) - Modelo de negocio: recursos clave

Diversas cartera de marcas de hoteles

Choice Hotels International posee y opera 11 marcas de hotel En varios segmentos de mercado:

Marca Número de propiedades Segmento de mercado
Comfort Inn 2,085 A mitad de escala
Calidad Inn 1,643 A mitad de escala
Sleep Inn 603 Economía
Clarín 302 Escala superior

Red de franquicia extensa

Detalles totales de la franquicia a partir de 2023:

  • Propiedades totales: 7.405 hoteles
  • Presencia geográfica: 50 estados y 40 países
  • Ingresos del acuerdo de franquicia: $ 293.2 millones en 2022

Tecnología de reserva y distribución patentada

La infraestructura tecnológica incluye:

  • Programa de fidelización de privilegios de elección con 55 millones de miembros
  • Plataformas de reserva digital que generan 62% de las reservas en línea
  • Aplicación móvil con Más de 10 millones de descargas

Reconocimiento de marca y recursos financieros

Métrica financiera Valor 2022
Ingresos totales $ 1.4 mil millones
Lngresos netos $ 285 millones
Capitalización de mercado $ 4.8 mil millones

Capital humano

  • Total de empleados: 1.200 personal corporativo
  • Promedio de la tenencia del empleado: 8.5 años

Choice Hotels International, Inc. (CHH) - Modelo de negocio: propuestas de valor

Múltiples marcas de hotel que atienden a diferentes segmentos de mercado

Choice Hotels opera 22 marcas en 7 segmentos diferentes a partir de 2023, incluyendo:

Segmento Marcas Número de propiedades
Economía Econolodge, Rodeway Inn 1.458 propiedades
A mitad de escala Quality Inn, Comfort Inn 2,023 propiedades
Escala superior Hoteles de Cambria 62 propiedades

Calidad y estándares consistentes en todas las propiedades de la franquicia

Choice Hotels mantiene los estrictos estándares de la marca a través de:

  • Requisitos integrales del acuerdo de franquicia
  • Inspecciones de propiedades regulares
  • Verificaciones de cumplimiento de calidad obligatorias

Opciones de alojamiento flexible

La cartera total incluye 7.225 hoteles en 11 países a partir del tercer trimestre de 2023, con:

  • 6,945 propiedades franquiciadas
  • 280 hoteles de propiedad corporativa

Programa de fidelización atractivo

Detalles del programa de fidelización de privilegios de elección:

Métrico Valor
Totales miembros 55 millones
Redispciones anuales 14.2 millones
Repita la tasa de reserva 48%

Modelo de franquicia rentable

Métricas financieras de franquicia para 2023:

Métrico Cantidad
Tarifa de franquicia inicial $35,000 - $75,000
Tarifa de regalías en curso 4-5% de los ingresos de la sala bruta
Contribución del fondo de marketing 2-3% de los ingresos de la sala bruta

Choice Hotels International, Inc. (CHH) - Modelo de negocios: relaciones con los clientes

Programa de lealtad basado en la membresía (privilegios de elección)

A partir de 2024, la membresía de privilegios de elección incluye 57 millones de miembros activos. El programa de fidelización ofrece:

  • Puntos que ingresan una tasa de 10 puntos por $ 1 gastado en estadías elegibles
  • Rediciones nocturnas gratis que comienzan en 8,000 puntos
  • Niveles de nivel: oro, platino, estado de diamante
Métricas del programa de fidelización 2024 datos
Totales miembros activos 57 millones
Tasa de ingresos de puntos 10 puntos por $ 1
Redención nocturna gratis Comenzando en 8,000 puntos

Plataformas de atención al cliente digital

Los canales de soporte en línea incluyen:

  • Servicio al cliente basado en la web 24/7
  • Tiempo de respuesta de soporte de chat en vivo: promedio de 2.5 minutos
  • Soporte por correo electrónico con respuesta garantizada de 12 horas

Marketing y comunicación personalizados

Choice Hotels utiliza estrategias de personalización basadas en datos con:

  • Campañas de correo electrónico dirigidas a 57 millones de miembros de lealtad
  • Personalización basada en 3.2 millones de puntos de datos del cliente
  • Enfoque de marketing segmentado con tasa de personalización del 85%

Aplicación móvil para reserva y gestión de cuentas

Rendimiento de la aplicación móvil 2024 estadísticas
Descargas totales de aplicaciones 12.6 millones
Usuarios activos mensuales 4.3 millones
Tasa de finalización de reserva 67%

Promociones y recompensas dirigidas

Destacas de la estrategia promocional:

  • Promociones selectivas trimestrales que llegan a 57 millones de miembros
  • Valor de promoción promedio: $ 35- $ 75 por miembro
  • Tasa de redención de ofertas promocionales: 42%

Choice Hotels International, Inc. (CHH) - Modelo de negocios: canales

Sitio web de la empresa y aplicación móvil

Las plataformas digitales de Choice Hotels procesaron 18.6 millones de reservas directas en 2022, lo que representa el 41% del volumen total de reservas. Las descargas de aplicaciones móviles llegaron a 4.2 millones de usuarios activos a partir del cuarto trimestre de 2022.

Canal digital Volumen de reservas Porcentaje de reservas totales
Sitio web de la empresa 14.3 millones de reservas 31.7%
Aplicación móvil 4.3 millones de reservas 9.3%

Agencias de viajes en línea

Expedia y Booking.com generaron el 22.5% del volumen de reserva total de los hoteles de elección en 2022, representando aproximadamente 10.1 millones de reservas.

Agencia de viajes en línea Volumen de reservas Cuota de mercado
Expedia 6.3 millones de reservas 14%
Booking.com 3.8 millones de reservas 8.5%

Sistemas de distribución global

Los hoteles de elección integrados con más de 450 sistemas de distribución global, generando 7.2 millones de reservas en 2022, lo que representa el 16% del volumen total de reservas.

  • Sabre Corporation: 3.6 millones de reservas
  • Amadeus: 2.1 millones de reservas
  • Travelport: 1.5 millones de reservas

Equipo de ventas directas

El equipo de ventas directas de Choice Hotels generó $ 412 millones en reservas corporativas y grupales en 2022, con 6,200 cuentas corporativas.

Segmento de ventas Ganancia Número de cuentas
Cuentas corporativas $ 276 millones 4.100 cuentas
Reservas grupales $ 136 millones 2.100 cuentas

Canales de marketing en red de franquicias

La red de franquicias de Choice Hotels comprende 7,100 hoteles en 11 marcas, generando $ 4.8 mil millones en ingresos totales para 2022.

  • Comfort Inn: 2.100 propiedades franquiciadas
  • Quality Inn: 1.600 propiedades franquiciadas
  • Sleep Inn: 400 propiedades franquiciadas
  • Clarion: 250 propiedades franquiciadas
  • Otras marcas: 2.750 propiedades franquiciadas

Choice Hotels International, Inc. (CHH) - Modelo de negocios: segmentos de clientes

Viajeros conscientes del presupuesto

Elección de hoteles se dirige a viajeros conscientes del presupuesto a través de marcas como Econo Lodge y Rodeway Inn. A partir de 2023, estas marcas representaban 1,152 propiedades con una tasa diaria promedio de $ 59.87.

Marca Número de propiedades Tasa diaria promedio
Econo Lodge 673 $55.42
Rodeway Inn 479 $64.33

Profesionales de negocios

Choice Hotels sirve a viajeros de negocios a través de marcas como Comfort Inn y Quality Inn. En 2022, estas marcas capturaron 38% de los segmentos del mercado de viajes corporativos.

  • Traveler promedio de negocios Duración: 2.3 noches
  • Tasa de contrato corporativo: $ 82.50 por noche
  • Miembros del programa de lealtad: 55 millones

Viajeros de ocio y familiares

Las marcas como Comfort Suites y Mainstay Suites atacan a los viajeros de ocio. En 2023, estos segmentos representaban el 42% del total de reservas.

Segmento de viajes familiares Porcentaje de reservas
Viajeros de ocio de fin de semana 27%
Estadías familiares extendidas 15%

Programas de viajes corporativos

Choice Hotels mantiene asociaciones con las principales empresas de gestión de viajes corporativos. En 2022, los viajes corporativos representaban $ 487 millones en ingresos.

  • Número de asociaciones corporativas: 23
  • Crecimiento de ingresos de viajes corporativos: 6.2%
  • Valor promedio de reserva corporativa: $ 214

Turistas internacionales y nacionales

Choice Hotels opera 7.052 propiedades en 11 marcas en los Estados Unidos e internacionalmente. Las reservas internacionales comprendían el 16% de los ingresos totales en 2023.

Segmento geográfico Número de propiedades Porcentaje de ingresos
Estados Unidos 6,834 84%
Mercados internacionales 218 16%

Choice Hotels International, Inc. (CHH) - Modelo de negocio: Estructura de costos

Gastos de apoyo y desarrollo de franquicias

En 2022, Choice Hotels informó gastos relacionados con la franquicia de $ 95.4 millones. La compañía mantiene una estructura de soporte integral para su red de franquicias, que incluye:

  • Programas de incorporación y capacitación de franquicia
  • Sistemas de soporte operativo en curso
  • Iniciativas de desarrollo de franquicias y expansión
Categoría de gastos Cantidad ($ millones)
Costos de soporte de franquicia 95.4
Inversiones de desarrollo de franquicias 42.6

Marketing y promoción de la marca

Choice Hotels invirtió $ 86.7 millones en gastos de marketing y promoción de la marca en 2022. La estrategia de marketing abarca:

  • Campañas de marketing digital
  • Iniciativas de concientización de marca
  • Marketing del programa de fidelización
Canal de marketing Gasto ($ millones)
Marketing digital 42.3
Publicidad tradicional 44.4

Mantenimiento de la infraestructura tecnológica

Los costos de infraestructura tecnológica para los hoteles de elección totalizaron $ 62.5 millones en 2022. Las inversiones de tecnología clave incluyen:

  • Sistema de reserva central
  • Desarrollo de aplicaciones móviles
  • Infraestructura de ciberseguridad
Categoría de gastos tecnológicos Cantidad ($ millones)
Infraestructura 35.2
Desarrollo de software 27.3

Gastos generales corporativos y costos administrativos

Los gastos generales corporativos para el elección de hoteles alcanzaron $ 104.3 millones en 2022. Estos costos abarcan:

  • Gestión ejecutiva
  • Recursos humanos
  • Departamentos legales y de cumplimiento
Categoría de gastos generales Gasto ($ millones)
Administración corporativa 67.8
Sobrecarga operativa 36.5

Inversiones de adquisición y retención de clientes

Choice Hotels asignó $ 53.6 millones para estrategias de adquisición y retención de clientes en 2022. Las áreas de inversión incluyen:

  • Mejoras del programa de fidelización
  • Gestión de la relación con el cliente
  • Programas de retención dirigidos
Estrategia del cliente Inversión ($ millones)
Costos de adquisición 29.4
Programas de retención 24.2

Choice Hotels International, Inc. (CHH) - Modelo de negocios: flujos de ingresos

Tarifas de franquicia

A partir de 2023, los hoteles de elección recolectados $ 167.9 millones en tarifas iniciales de franquicia y tarifas de desarrollo de nuevas propiedades del hotel.

Tipo de tarifa Cantidad (2023)
Tarifas de franquicia iniciales $ 126.3 millones
Tarifas de desarrollo $ 41.6 millones

Pagos de regalías de propiedades franquiciadas

En 2023, los hoteles de elección generados $ 386.7 millones en tarifas de regalías de sus propiedades hoteleras franquiciadas.

  • Las tasas de regalías generalmente oscilan entre el 3-5% de los ingresos de la habitación bruta
  • Total de propiedades franquiciadas: 7.405 al 31 de diciembre de 2023

Tarifas de transacción del sistema de reserva

Hoteles de elección ganados $ 34.2 millones en las tarifas de transacción del sistema de reserva en 2023.

Canal de reserva Porcentaje de tarifa de transacción
Reservas directas 2-3%
Plataformas de terceros 4-6%

Ingresos de licencias de marca

Ingresos de licencia de marca para hoteles de elección en 2023 totalizaron $ 22.5 millones.

Comisiones del programa de viajes corporativos

Comisiones del programa de viajes corporativos generados $ 18.6 millones en Ingresos para Hoteles Choice en 2023.

Programa de viajes corporativos Porcentaje de comisión
Cuentas de viajes de negocios 3-5%
Contratos basados ​​en volumen 5-7%

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Value Propositions

You're looking at the core value Choice Hotels International, Inc. delivers to its partners and guests as of late 2025. For hotel owners, the proposition centers on maximizing profitability through an asset-light structure supported by scale. For travelers, it's about a broad, reliable, and rewarding lodging experience across many price points.

For Franchisees: Asset-light model with high-margin fee revenue and support to drive RevPAR

Choice Hotels International, Inc. focuses on franchising, which means high-margin fee revenue streams for the corporation. You see this reflected in the domestic effective royalty rate, which stood at 5.12% for the second quarter of 2025. By the third quarter of 2025, that U.S. average royalty rate had expanded to 5.15%. The company is driving revenue through its network, evidenced by franchise and management fees hitting $193.8 million in Q3 2025. Also, partnership services and fees saw a significant jump, increasing 19% in that same quarter. Business travelers, who represent a more resilient customer base, now account for 40% of all stays. This focus on driving higher-yield guests is key to the model.

The support structure is designed to directly impact your top line. For example, participating properties in the ChoiceROCS consultancy program saw $81 million in incremental revenue in 2024. Furthermore, those same properties experienced a 100-basis-point premium in RevPAR Index compared to hotels not using the program that year. It's defintely about using data to boost performance.

Here's a quick look at some of the tangible support metrics provided to franchise owners:

Metric Value/Result Period/Context
Total Potential Operational Savings Identified Over $25 million 2024
Average Savings Per Participating Property $33,000 2024
Average Food Cost Savings (New Program) 9% July 2024 to March 2025
Incremental Revenue via ChoiceROCS $81 million 2024

For Franchisees: Operational cost savings, averaging $33,000 per participating property

Choice Hotels International, Inc. uses its scale to negotiate better supplier terms, directly lowering your operating expenses. Area Directors helped owners identify over $25 million in potential operational cost savings in 2024 alone, which translates to an average of $33,000 saved per property that participated in that effort. Beyond general savings, a new food group purchasing program launched in mid-2024 delivered an average saving of 9% on food costs based on market-basket comparisons through March 2025.

For Guests: Diverse lodging options from economy to upper upscale (e.g., WoodSpring Suites to Radisson Blu)

You get access to a wide spectrum of lodging needs because the global portfolio encompasses over 7,500 hotels as of 2025. The company operates a diverse portfolio of 22 brands, which lets Choice Hotels International, Inc. meet travelers' needs across the entire spectrum, from economy to upper upscale. This range includes deep penetration in the extended-stay segment, where brands like WoodSpring Suites continue to deliver impressive operating profits above 55%. Furthermore, the Everhome Suites brand is projected to open 25 new hotels by the end of 2025. For the higher end, brands like Radisson Blu are part of the network accessible to top-tier loyalty members.

For Guests: Value maximization through the loyalty program and direct booking benefits

The Choice Privileges rewards program is positioned as a key driver of guest value. Membership has surged past 70 million members. This engaged base is showing higher spend and longer stays; members saw a 13% growth in average length of stay and a 30% jump in reward redemptions. You benefit from guests booking direct, as the ChoiceHotels.com refresh resulted in a 6% year-over-year increase in converting lookers into direct bookers, with upscale booking conversions up more than 14% in the first quarter of 2025. The program is also evolving to offer more value:

  • Faster paths to existing Elite status tiers starting in 2026, requiring five fewer nights (e.g., Diamond Elite at 35 nights).
  • A new top-tier Titanium status, achievable at 55 nights or 110,000 Elite Qualifying Credits.
  • The Titanium travel award benefit allows booking one room for up to seven nights at over 400+ premium properties for just half the points.

For Franchisees: Access to a domestic effective royalty rate of 5.12% in Q2 2025

The specific financial commitment for domestic franchisees is anchored by the royalty rate. As noted, the domestic effective royalty rate was 5.12% in the second quarter of 2025. This rate is a core component of the asset-light, fee-based revenue model that Choice Hotels International, Inc. champions for its stability and high margin potential.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Customer Relationships

Dedicated Franchisee Success System and Area Directors

Choice Hotels International, Inc. focuses on driving owner value through its Franchisee Success System. Through strategic partnerships, the company helped franchise owners identify over $25 million in potential operational savings as of early 2025, averaging $33,000 per participating property. Furthermore, a food group purchasing program saved franchisees an average of 9% on food costs. The strength of this system is underscored by segment growth; for instance, the WoodSpring Suites brand grew by 9.7% to nearly 33,000 rooms since June 30, 2024. The domestic extended stay segment pipeline reached over 40,000 rooms as of March 31, 2025.

Automated, personalized digital engagement via the loyalty program

The Choice Privileges rewards program is a core digital relationship driver. Loyalty membership surged past 70 million as of April 2025. Enhancements implemented in early 2025 drove a 30% increase in redemptions and a 13% growth in the average length of stay in 2024. You can see the scale of the program below:

Metric Value as of Late 2025 Data
Total Loyalty Members Over 70 million
Total Participating Hotels Globally Over 7,000
Countries/Territories Served 45
Upscale Rooms Accessible via Points Over 180,000

The company is committed to making it easier for these members to earn and redeem points.

High-touch relationship management for upscale and extended-stay owners

The focus on higher-revenue segments necessitates a more direct approach. The upscale and above-brand portfolio saw impressive room count growth of 44% in the year leading up to April 2025. The domestic upscale, extended stay, and midscale net rooms portfolio grew by 2.3% compared to June 30, 2024. This growth in premium segments is supported by the overall system expansion, which saw net global rooms system size increase by 2.8% as of March 31, 2025, compared to March 31, 2024.

Self-service tools for booking and loyalty account management

Digital self-service tools directly impact the transactional relationship with both guests and owners. A refreshed ChoiceHotels.com resulted in a 6% year-over-year increase in converting lookers into direct bookers in the first quarter of 2025. For upscale bookings specifically, conversions rose by more than 14% in Q1 2025. For loyalty members, Choice Hotels International, Inc. implemented a reward night booking window tripled to 50 weeks, up from the prior 100 days. Also, the Choice RewardSaver tool lets members book reward nights for as low as 6,000 points, a reduction from the previous minimum of 8,000 points.

  • Points can be combined with cash via Points Plus Cash redemption.
  • Members can exchange points for miles with 10 participating airlines.
  • Elite members receive a welcome gift or bonus points upon check-in at every Choice hotel.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Channels

Choice Hotels International, Inc. manages distribution across a global portfolio that surpassed 150,000 rooms as of the third quarter of 2025, with a total revenue of $447.3 million reported for that quarter alone.

Direct booking channels (ChoiceHotels.com, mobile app)

The push for direct bookings is central, driven by the desire to capture the full margin by avoiding third-party commissions, which in the industry can reach 30% or higher. Choice Hotels International, Inc. incentivizes this channel through its loyalty program, offering Choice Privileges® members instant discounts ranging from 2 - 7% off the Best Available Rate when booking direct via ChoiceHotels.com or the mobile app. Furthermore, the company offers a $50 Reward Card match to any guest who finds a lower, publicly available rate elsewhere, reinforcing the lowest price guarantee on direct channels. In a prior period, the company noted a 20% increase in direct online contribution for the Country Inn & Suites brand.

Global Sales team for group and corporate business

The Global Sales team focuses on securing group and negotiated corporate volume, which is a key area for Choice Hotels International, Inc. as business travel grew 10 percent year-over-year in the first quarter of 2025. The integration of the Radisson Americas global sales team contributed significantly; in the 12 months following that integration, the team drove nearly $100 million in incremental Gross Room Revenue for hotels across the Choice system. The revenue from the Global Sales team saw a 10% increase year-over-year in 2024. The international business, which represents $3 billion in gross rooms revenue as of late 2025, is a major focus for growth.

Online Travel Agencies (OTAs) and third-party distribution partners

Third-party partners, primarily OTAs, remain a necessary component for broad market visibility, despite the associated cost structure. The company's overall revenue streams are supported by its large system size, with Franchise and management fees reaching $193.8 million in the third quarter of 2025. The company continues to expand its global footprint, with its international net rooms growing 8.3% year-over-year in the third quarter of 2025. The focus on higher-value segments, such as extended stay, helps to mitigate the margin impact from third-party bookings.

Global distribution systems (GDS) for business travel

Global Distribution Systems (GDS) serve as a critical pathway for corporate travel managers and travel agents booking on behalf of business travelers. The overall GDS market for hotels was valued at $7499.6 million in 2025. Corporate travelers are explicitly noted as being able to book through their online booking tool, GDS, or with a travel agent. The company's business travel segment showed growth, supported by its expanding upscale and extended-stay portfolio. The strategic agreements, such as the one in China expected to add over 9,500 rooms, rely on distribution channels like GDS for access to corporate booking tools.

Metric Value/Amount Period/Context
Q3 2025 Total Revenues $447.3 million Third Quarter 2025
Q3 2025 Franchise and Management Fees $193.8 million Third Quarter 2025
International Gross Rooms Revenue $3 billion As of late 2025
Global Net Rooms System Size Exceeded 150,000 rooms As of Q3 2025
Global Pipeline Rooms Exceeded 86,000 rooms As of September 30, 2025
Incremental GRR from Global Sales Team (Post-Integration) Nearly $100 million 12 months following Oct 2022 integration
GDS Market Value $7499.6 million 2025
Maximum Industry OTA Commission Up to 40% Industry Context
  • Choice Privileges members have access to rates discounted by 2 - 7% off BAR when booking direct.
  • The company offers a $50 Reward Card for successfully claiming a lower rate found on a third-party site.
  • Choice Hotels International, Inc. is expecting to nearly double its France portfolio by year-end 2025.
  • Choice Privileges® has more than 66 million members.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Customer Segments

You're looking at the core groups Choice Hotels International, Inc. (CHH) serves as of late 2025, grounded in their latest system performance metrics. This is about who is signing up to own the hotels and who is staying in them.

Franchise Owners/Developers: Seeking an asset-light, high-ROI business model

The health of the franchise relationship is central to Choice Hotels International, Inc.'s model. The company emphasizes driving owners' revenue up and their costs down. Franchisee confidence is reflected in the development pipeline growth.

  • Global franchise agreements awarded grew 54% in the third quarter of 2025 compared to the same period of 2024.
  • U.S. franchise agreements awarded increased 7% in the third quarter of 2025 versus the prior year, with new construction up 10%.
  • The total global pipeline exceeded 86,000 rooms as of September 30, 2025.
  • 98% of the global pipeline is concentrated in the upscale, extended stay, and midscale segments.
  • Choice Hotels has over 7,500 hotels globally.

Choice Hotels International, Inc. uses its scale to deliver tangible benefits to these partners. For example, through strategic partnerships, the company helped franchise owners identify over $25 million in potential operational savings in 2024, averaging $33,000 per participating property. Also, a new food group purchasing program, launched in mid-2024, saved franchisees an average of 9% on food costs based on market-basket comparisons through March 2025. The ChoiceROCS consultancy program delivered $81 million in incremental revenue to participating properties in 2024.

Value-Conscious Leisure Travelers: Families and road-trippers (midscale/economy)

This segment remains a bedrock for Choice Hotels International, Inc., often showing resilience. The loyalty program is a key tool for retention here.

Metric Value/Segment Period/Context
RevPAR Growth (Midscale) 1.7% Q1 2025, exceeding chain average by 30 basis points
RevPAR Growth (Economy) 7.1% Q1 2025, exceeding chain average by 440 basis points
Global Net Rooms Growth (Midscale) 3.3% Q3 2025 vs. Q3 2024 (as part of upscale, extended stay, and midscale segments)
Loyalty Program Members More than 70 million As of early 2025
Average Length of Stay Growth (Loyalty Members) 13% increase Driven by revamped loyalty program features

Extended-Stay Guests: Project-based workers and long-term travelers

The extended-stay category is highlighted as a beacon and a cycle-resilient area for Choice Hotels International, Inc. Development momentum is strong here.

  • Domestic extended-stay net rooms grew 10.8% compared to March 31, 2024, and 12% compared to September 30, 2024.
  • The domestic extended-stay pipeline reached over 40,000 rooms as of March 31, 2025, and nearly 43,000 rooms as of June 30, 2025.
  • Domestic extended-stay RevPAR rose 6.8% in Q1 2025, outperforming the industry by 410 basis points.
  • The WoodSpring Suites brand continues to deliver gross operating profits above 55%.
  • The Everhome Suites brand is projected to open 25 new hotels by the end of 2025.
  • Choice brands accounted for half of all economy and midscale extended stay hotels open or under construction in 2024.

The WoodSpring Suites brand specifically grew its rooms by 9.7% year-on-year in Q2 2025.

Business and Upscale Travelers: Targeting growth in the upper midscale and upscale segments

Choice Hotels International, Inc. is actively attracting a higher-yield customer base, evidenced by strong growth in its upscale portfolio and business travel metrics. This focus is a strategic lever for the company.

  • Business travelers now account for 40% of all stays.
  • Transient business revenue in the upper midscale segment increased by 20% in Q4 2024.
  • The upscale and above-brand segments saw 44% growth in room count in the past year (2024).
  • Global net upscale rooms grew 20.8% in Q3 2025 compared to the same period in 2024.
  • Global upscale pipeline increased by 7% from March 31, 2025, reaching nearly 29,000 rooms as of June 30, 2025.
  • Upscale online booking conversions on ChoiceHotels.com rose by more than 14% in the first quarter of 2025.

Global upscale openings saw a more than fourfold increase in Q3 2025 compared to Q3 2024.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Cost Structure

You're looking at the core spending habits of Choice Hotels International, Inc. as of late 2025, focusing on the figures reported around the second quarter. This is where the operational cash goes to keep the franchise machine running and growing.

Selling, General, and Administrative Expenses (SG&A), which covers the overhead of running the corporate side, saw its adjusted figure for the second quarter of 2025 land at $77.6 million. Honestly, if you strip out a $2 million operating guarantee payment related to the Radisson Hotels Americas acquisition, that adjusted SG&A for Q2 2025 was even lower, coming in at $75.6 million.

The structure also heavily involves managing funds related to franchised and managed properties. Reimbursable revenues from these properties in Q2 2025 were $167 million. The company notes that franchise and management agreements require these revenues to be used for specific associated expenses, such as central reservation systems and national marketing.

Here's a look at some of the key financial metrics from the Q2 2025 period that feed into the cost structure view:

Financial Metric Amount (Q2 2025) Context/Notes
Adjusted Selling, General, and Administrative Expenses (SG&A) $77.6 million Reported Q2 2025 figure.
Adjusted SG&A (Excluding Operating Guarantee Payment) $75.6 million Q2 2025 figure excluding the $2 million payment.
Reimbursable Revenues from Franchised/Managed Properties $167 million Q2 2025 figure; these revenues fund related operating costs.
Partnership Services and Fees Revenue $27.1 million Q2 2025 revenue figure, related to franchise/management support.
Cash Flows from Operating Activities (First Half 2025) $116.1 million Total for the first six months of 2025.

Technology development and maintenance costs, which include investments in things like AI platforms and keeping the central reservation system humming, are funded through the general operating budget and the specific revenues mentioned above. Similarly, costs associated with the Choice Privileges loyalty program-covering rewards redemption, associated marketing efforts, and any co-brand credit card fees-are embedded within the operating expenses, though specific dollar amounts for these sub-categories weren't itemized separately in the primary Q2 2025 disclosures.

Marketing and advertising spend for brand awareness and driving direct bookings is also a significant outflow. The franchise and management agreements stipulate that associated revenues must cover national marketing and media advertising. For Q2 2025, the company reported that Partnership services and fees revenue, which supports these activities, was $27.1 million.

  • Technology/CRS costs are covered by franchise service revenues and general operating funds.
  • Loyalty program expenses are tied to member rewards and co-brand card agreements.
  • Marketing spend is supported by fees designated for national advertising efforts.

Finance: draft 13-week cash view by Friday.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Choice Hotels International, Inc. as of late 2025. This is a fee-based model, meaning the company makes money from its hotel owners, not directly from guests.

Royalty Fees represent the largest, most consistent revenue stream, calculated as a percentage of the domestic franchisees' gross room revenue. For the second quarter of 2025, the domestic effective royalty rate stood at 5.12%. By the third quarter of 2025, this rate had expanded slightly to 5.15%.

The revenue streams are detailed below, showing the most recent concrete figures available:

Revenue Stream Component Specific Metric/Period Financial Amount/Rate
Royalty Fees (Domestic Effective Rate) Q2 2025 5.12% of gross room revenue
Royalty Fees (U.S. Average Rate) Q3 2025 5.15%
Partnership Services and Fees Q1 2025 $25.4 million
Partnership Services and Fees Q2 2025 $27.1 million
Full-Year 2025 Adjusted EBITDA Projection Full Year 2025 (Tightened Guidance) Range of $620 million to $632 million

Other key components that feed the top line include:

  • Initial Franchise Fees: Paid by new franchisees upon signing.
  • System Fees: Fees for central reservation, marketing, and technology access.

The company's overall financial expectation for the year remains strong, despite softer U.S. RevPAR guidance revisions. The full-year 2025 Adjusted EBITDA projection is currently set between $615 million and $635 million, with the most recent update tightening that range to $620 million to $632 million.

The growth in Partnership Services and Fees is notable; it increased from $19.84 million in Q1 2024 to $25.38 million in Q1 2025, and then to $27.1 million in Q2 2025.


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