Choice Hotels International, Inc. (CHH): Modelo de negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da hospitalidade, a Choice Hotels International, Inc. (CHH) criou magistralmente um modelo de negócios que transforma o cenário tradicional do hotel em um ecossistema flexível e inovador de franquia. Ao alavancar estrategicamente várias marcas, tecnologia de ponta e um programa de fidelidade robusto, a CHH se posicionou como uma potência que oferece valor incomparável para viajantes e proprietários de hotéis independentes. Esse modelo de negócios Canvas revela como a empresa criou engenhosamente uma plataforma que ganha ganha-ganha que abrange diversos segmentos de clientes, oferece qualidade consistente e gera vários fluxos de receita em um mercado cada vez mais competitivo.

Choice Hotels International, Inc. (CHH) - Modelo de negócios: Parcerias -chave

Acordos de franquia com proprietários de hotéis independentes

A partir de 2023, os hotéis de escolha opera 7.642 hotéis em várias marcas, com 98% das propriedades franqueadas. O número total de acordos de franquia inclui:

Marca	Número de hotéis	Porcentagem de franquia
Conforto	2,217	29%
Qualidade	1,576	20.6%
Sleep Inn	631	8.3%

Parcerias estratégicas com agências de viagens on -line (OTAs)

A Choice Hotels tem parcerias com grandes OTAs, incluindo:

• Grupo Expedia
• Booking.com
• Pricelina

Em 2022, Os canais digitais representavam 49% do total de reservas.

Provedores de tecnologia para sistemas de reserva e gerenciamento

As principais parcerias tecnológicas incluem:

• Sabre Corporation
• Ópera por sistemas micros
• Oracle Hospitality

Parcerias de co-branding com empresas de cartão de crédito

A Choice Hotels mantém uma parceria com cartão de crédito da marca com:

• Barclays Bank

A escolha privilegia a MasterCard gerada US $ 94,5 milhões em taxas de royalties em 2022.

Relacionamentos com programas de viagens corporativas

Parcerias de viagens corporativas incluem acordos com:

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

Viagens corporativas e em grupo representadas Aproximadamente 15% da receita total da sala em 2022.

Choice Hotels International, Inc. (CHH) - Modelo de negócios: Atividades -chave

Gerenciamento e suporte de franquia

A partir de 2024, a Choice Hotels gerencia 7.324 hotéis em 15 países com 604.000 quartos de hotel. A empresa suporta 11 marcas distintas de hotéis por meio de operações abrangentes de franquia.

Métricas de suporte à franquia	2024 dados
Propriedades franqueadas totais	7.324 hotéis
Presença geográfica	15 países
Total de quartos de hotel	604.000 quartos

Desenvolvimento e marketing de marca

A Choice Hotels investe US $ 45,2 milhões anualmente em estratégias de marketing e desenvolvimento de marcas.

• Orçamento de marketing digital: US $ 18,7 milhões
• Campanhas de posicionamento da marca: US $ 12,5 milhões
• Investimentos de pesquisa de mercado: US $ 14 milhões

Padrões de propriedade do hotel e controle de qualidade

A empresa mantém processos rigorosos de controle de qualidade em sua rede de franquias.

Métricas de controle de qualidade	2024 padrões
Inspeções anuais de propriedades	100% das propriedades franqueadas
Pontuação mínima de conformidade com a marca	85/100
Orçamento de melhoria da qualidade	US $ 22,3 milhões

Gerenciamento do sistema de reserva e distribuição

A Choice Hotels opera uma sofisticada plataforma de reserva digital processando 62,4 milhões de reservas anualmente.

• Transações da plataforma de reserva on -line: 78% do total de reservas
• Porcentagem de reserva de aplicativos móveis: 42% das reservas online
• Investimento anual de infraestrutura de tecnologia: US $ 37,6 milhões

Administração do Programa de Fidelidade do Cliente

O programa de fidelidade de privilégios de escolha gerencia 26,3 milhões de membros ativos em 2024.

Métricas do Programa de Fidelidade	2024 dados
Membros ativos totais	26,3 milhões
Orçamento anual do programa de fidelidade	US $ 16,7 milhões
Taxa de retenção de membros	68%

Choice Hotels International, Inc. (CHH) - Modelo de negócios: Recursos -chave

Portfólio diversificado de marcas de hotéis

A Choice Hotels International possui e opera 11 marcas de hotéis Em vários segmentos de mercado:

Marca	Número de propriedades	Segmento de mercado
Comfort Inn	2,085	Midcale
Quality Inn	1,643	Midcale
Sleep Inn	603	Economia
Clarion	302	Midcale superior

Extensa rede de franquias

Total de detalhes da franquia em 2023:

• Propriedades totais: 7.405 hotéis
• Presença geográfica: 50 estados e 40 países
• Receita de contrato de franquia: US $ 293,2 milhões em 2022

Tecnologia de reserva e distribuição proprietária

A infraestrutura tecnológica inclui:

• Programa de fidelidade de privilégios de escolha com 55 milhões de membros
• Plataformas de reserva digital geradoras 62% das reservas online
• Aplicativo móvel com Mais de 10 milhões de downloads

Reconhecimento da marca e recursos financeiros

Métrica financeira	2022 Valor
Receita total	US $ 1,4 bilhão
Resultado líquido	US $ 285 milhões
Capitalização de mercado	US $ 4,8 bilhões

Capital humano

• Total de funcionários: 1.200 funcionários corporativos
• Possuir médio de funcionário: 8,5 anos

Choice Hotels International, Inc. (CHH) - Modelo de negócios: proposições de valor

Várias marcas de hotéis atendendo a diferentes segmentos de mercado

A Choice Hotels opera 22 marcas em 7 segmentos diferentes a partir de 2023, incluindo:

Segmento	Marcas	Número de propriedades
Economia	Econolodge, Romeway Inn	1.458 propriedades
Midcale	Quality Inn, Comfort Inn	2.023 propriedades
Midcale superior	Hotéis de Cambria	62 propriedades

Qualidade e padrões consistentes nas propriedades da franquia

A Choice Hotels mantém padrões rígidos de marca através de:

• Requisitos abrangentes de contrato de franquia
• Inspeções regulares de propriedades
• Verificações obrigatórias de conformidade de qualidade

Opções de acomodação flexíveis

O portfólio total inclui 7.225 hotéis em 11 países a partir do terceiro trimestre de 2023, com:

• 6.945 propriedades franqueadas
• 280 hotéis de propriedade corporativa

Programa de fidelidade atraente

Detalhes do programa de fidelidade de privilégios de escolha:

Métrica	Valor
Total de membros	55 milhões
Redenções anuais	14,2 milhões
Repita a taxa de reserva	48%

Modelo de franquia econômico

Métricas financeiras de franquia para 2023:

Métrica	Quantia
Taxa inicial de franquia	$35,000 - $75,000
Taxa de royalties em andamento	4-5% da receita da sala bruta
Contribuição do fundo de marketing	2-3% da receita da sala bruta

Choice Hotels International, Inc. (CHH) - Modelo de Negócios: Relacionamentos do Cliente

Programa de fidelidade baseado em associação (privilégios de escolha)

A partir de 2024, a associação de privilégios de escolha inclui 57 milhões de membros ativos. O programa de fidelidade oferece:

• Pontos ganhando taxa de 10 pontos por US $ 1 gasto em estadias elegíveis
• Resgates noturnos grátis a partir de 8.000 pontos
• Níveis de camada: ouro, platina, status de diamante

Métricas do Programa de Fidelidade	2024 dados
Membros ativos totais	57 milhões
Taxa de ganho de pontos	10 pontos por US $ 1
Redenção noturna grátis	Começando em 8.000 pontos

Plataformas de suporte ao cliente digital

Os canais de suporte on -line incluem:

• Atendimento ao cliente baseado na Web 24/7
• Tempo de resposta de suporte ao vivo de bate -papo: média de 2,5 minutos
• Suporte por e-mail com resposta garantida de 12 horas

Marketing e comunicação personalizados

Os hotéis de escolha utilizam estratégias de personalização orientadas a dados com:

• Campanhas de e -mail direcionadas para 57 milhões de membros de fidelidade
• Personalização com base em 3,2 milhões de pontos de dados do cliente
• Abordagem de marketing segmentada com taxa de personalização de 85%

Aplicativo móvel para reserva e gerenciamento de contas

Desempenho do aplicativo móvel	2024 Estatísticas
Downloads de aplicativos totais	12,6 milhões
Usuários ativos mensais	4,3 milhões
Taxa de conclusão de reserva	67%

Promoções e recompensas direcionadas

Destaques de estratégia promocional:

• Promoções direcionadas trimestrais atingindo 57 milhões de membros
• Valor médio de promoção: US $ 35 a US $ 75 por membro
• Taxa de resgate de ofertas promocionais: 42%

Choice Hotels International, Inc. (CHH) - Modelo de Negócios: Canais

Site da empresa e aplicativo móvel

As plataformas digitais da Choice Hotels processaram 18,6 milhões de reservas diretas em 2022, representando 41% do volume total de reservas. Os downloads de aplicativos móveis atingiram 4,2 milhões de usuários ativos a partir do quarto trimestre 2022.

Canal digital	Volume de reserva	Porcentagem do total de reservas
Site da empresa	14,3 milhões de reservas	31.7%
Aplicativo móvel	4,3 milhões de reservas	9.3%

Agências de viagens on -line

A Expedia e Booking.com geraram 22,5% do volume total de reservas da Choice Hotels em 2022, representando aproximadamente 10,1 milhões de reservas.

Agência de viagens on -line	Volume de reserva	Quota de mercado
Expedia	6,3 milhões de reservas	14%
Booking.com	3,8 milhões de reservas	8.5%

Sistemas de distribuição global

Hotéis de escolha integrados com mais de 450 sistemas de distribuição global, gerando 7,2 milhões de reservas em 2022, representando 16% do volume total de reservas.

• Sabre Corporation: 3,6 milhões de reservas
• Amadeus: 2,1 milhões de reservas
• Travelport: 1,5 milhão de reservas

Equipe de vendas diretas

A equipe de vendas diretas da Choice Hotels gerou US $ 412 milhões em reservas corporativas e em grupo em 2022, com 6.200 contas corporativas.

Segmento de vendas	Receita	Número de contas
Contas corporativas	US $ 276 milhões	4.100 contas
Reservas em grupo	US $ 136 milhões	2.100 contas

Canais de marketing de rede de franquia

A Choice Hotels 'Franchise Network compreende 7.100 hotéis em 11 marcas, gerando US $ 4,8 bilhões em receita total para 2022.

• Comfort Inn: 2.100 propriedades franqueadas
• Quality Inn: 1.600 propriedades franqueadas
• Sleep Inn: 400 Propriedades franqueadas
• Clarion: 250 propriedades franqueadas
• Outras marcas: 2.750 propriedades franqueadas

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

Viajantes conscientes do orçamento

A Choice Hotels tem como alvo viajantes conscientes do orçamento através de marcas como Econo Lodge e Rodeway Inn. Em 2023, essas marcas representavam 1.152 propriedades com uma taxa média diária de US $ 59,87.

Marca	Número de propriedades	Taxa média diária
Econo Lodge	673	$55.42
Rodeway Inn	479	$64.33

Profissionais de negócios

A Choice Hotels serve viajantes de negócios através de marcas como Comfort Inn e Quality Inn. Em 2022, essas marcas capturadas 38% dos segmentos de mercado de viagens corporativas.

• Duração média do viajante de negócios: 2,3 noites
• Taxa de contrato corporativo: US $ 82,50 por noite
• Membros do programa de fidelidade: 55 milhões

Lazer e viajantes da família

Marcas como Comfort Suites e Painstay Suites têm como alvo viajantes de lazer. Em 2023, esses segmentos representavam 42% do total de reservas.

Segmento de viagem em família	Porcentagem de reservas
Viajantes de lazer de fim de semana	27%
Estadias familiares prolongadas	15%

Programas de viagens corporativas

A Choice Hotels mantém parcerias com as principais empresas de gerenciamento de viagens corporativas. Em 2022, as viagens corporativas representavam US $ 487 milhões em receita.

• Número de parcerias corporativas: 23
• Crescimento da receita de viagens corporativas: 6,2%
• Valor médio de reserva corporativa: $ 214

Turistas internacionais e domésticos

A Choice Hotels opera 7.052 propriedades em 11 marcas nos Estados Unidos e internacionalmente. As reservas internacionais compreenderam 16% da receita total em 2023.

Segmento geográfico	Número de propriedades	Porcentagem de receita
Estados Unidos	6,834	84%
Mercados internacionais	218	16%

Choice Hotels International, Inc. (CHH) - Modelo de negócios: estrutura de custos

Despesas de suporte e desenvolvimento de franquia

Em 2022, a Choice Hotels relatou despesas relacionadas à franquia de US $ 95,4 milhões. A empresa mantém uma estrutura de suporte abrangente para sua rede de franquias, que inclui:

• Programas de integração e treinamento de franquia
• Sistemas de suporte operacional em andamento
• Iniciativas de desenvolvimento e expansão de franquia

Categoria de despesa	Valor (US $ milhões)
Custos de apoio à franquia	95.4
Investimentos de desenvolvimento de franquias	42.6

Marketing e promoção de marca

A Choice Hotels investiu US $ 86,7 milhões em despesas de marketing e promoção da marca em 2022. A estratégia de marketing abrange:

• Campanhas de marketing digital
• Iniciativas de reconhecimento da marca
• Marketing do Programa de Fidelidade

Canal de marketing	Gastos (US $ milhões)
Marketing digital	42.3
Publicidade tradicional	44.4

Manutenção de infraestrutura de tecnologia

Os custos de infraestrutura de tecnologia para hotéis de escolha totalizaram US $ 62,5 milhões em 2022. Os principais investimentos em tecnologia incluem:

• Sistema de Reserva Central
• Desenvolvimento de aplicativos móveis
• Infraestrutura de segurança cibernética

Categoria de despesa de tecnologia	Valor (US $ milhões)
Infraestrutura de TI	35.2
Desenvolvimento de software	27.3

Custos indiretos e administrativos corporativos

As despesas indiretas corporativas para hotéis de escolha atingiram US $ 104,3 milhões em 2022. Esses custos abrangem:

• Gestão executiva
• Recursos Humanos
• Departamentos legais e de conformidade

Categoria de sobrecarga	Despesa (US $ milhões)
Administração corporativa	67.8
Sobrecarga operacional	36.5

Investimentos de aquisição e retenção de clientes

Os hotéis de escolha alocaram US $ 53,6 milhões para as estratégias de aquisição e retenção de clientes em 2022. As áreas de investimento incluem:

• Aprimoramentos do programa de fidelidade
• Gerenciamento de relacionamento com o cliente
• Programas de retenção direcionados

Estratégia do cliente	Investimento (US $ milhões)
Custos de aquisição	29.4
Programas de retenção	24.2

Choice Hotels International, Inc. (CHH) - Modelo de negócios: fluxos de receita

Taxas de franquia

A partir de 2023, os hotéis escolhidos coletados US $ 167,9 milhões nas taxas iniciais de franquia e no desenvolvimento de novas propriedades do hotel.

Tipo de taxa	Valor (2023)
Taxas iniciais de franquia	US $ 126,3 milhões
Taxas de desenvolvimento	US $ 41,6 milhões

Pagamentos de royalties de propriedades franqueadas

Em 2023, hotéis de escolha gerados US $ 386,7 milhões nas taxas de royalties de suas propriedades franqueadas de hotéis.

• As taxas de royalties geralmente variam entre 3-5% das receitas de salas brutas
• Total de propriedades franqueadas: 7.405 em 31 de dezembro de 2023

Taxas de transação do sistema de reserva

Hotéis escolhidos ganhos US $ 34,2 milhões nas taxas de transação do sistema de reserva em 2023.

Canal de reserva	Porcentagem de taxa de transação
Reservas diretas	2-3%
Plataformas de terceiros	4-6%

Receitas de licenciamento de marca

Receitas de licenciamento de marcas para hotéis de escolha em 2023 totalizou US $ 22,5 milhões.

Comissões do Programa de Viagens Corporativas

Comissões do Programa de Viagens Corporativas geradas US $ 18,6 milhões em receita para hotéis de escolha em 2023.

Programa de viagem corporativa	Porcentagem de comissão
Contas de viagens de negócios	3-5%
Contratos baseados em volume	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.