Choice Hotels Announces First Contract Awarded Under Recently Reintroduced SOAR Program to Support Hotel Ownership Opportunities for Historically Underrepresented Entrepreneurs

Rhea-AI Summary

Choice Hotels International (NYSE: CHH) has announced its first contract under the recently reintroduced SOAR program, aimed at creating hotel ownership opportunities for underrepresented entrepreneurs. Damon Healey of Eternal Companies has signed a contract to convert two hotels in Georgia to Suburban Studios, one of Choice's extended stay brands. The properties, located in Columbus and Macon, opened on May 30.

The SOAR program reaffirms Choice's commitment to supporting underrepresented entrepreneurs in hotel ownership. In 2023, Choice's Emerging Markets program executed 28 new franchise contracts with diverse entrepreneurs, including 9 with African American owners and 17 with women owners through the HERtels by Choice program. The company has awarded and financially supported over 370 franchise agreements with underrepresented minority and veteran entrepreneurs since the program's inception.

Positive

• First contract awarded under the reintroduced SOAR program, supporting underrepresented entrepreneurs in hotel ownership
• Conversion of two hotels in Georgia to Suburban Studios extended stay brand
• 28 new franchise contracts executed in 2023 with diverse entrepreneurs
• Doubled the number of agreements with Native American hotel owners in 2023
• 30% increase in agreements with Hispanic and Latino owners in 2023
• 59 new female-owned hotels through the HERtels by Choice program since 2021

Negative

• None.

Insights

Hospitality Industry Analyst

This announcement marks a significant milestone in Choice Hotels' efforts to promote diversity in hotel ownership. The SOAR program's first contract, awarded to Damon Healey of Eternal Companies, demonstrates tangible progress in supporting underrepresented entrepreneurs in the hospitality industry.

The conversion of two Georgia hotels to Suburban Studios aligns with the growing demand for extended stay properties, which currently outpaces supply by a factor of two. This strategic move positions Choice Hotels to capitalize on this market trend while simultaneously advancing its diversity initiatives.

The reintroduction of SOAR and its early success, coupled with the impressive 2023 performance (28 new franchise contracts, including 17 with women owners), showcases Choice Hotels' commitment to diversifying its franchisee base. This approach not only enhances the company's social responsibility profile but also potentially opens up new market opportunities and perspectives in hotel management.

Diversity and Inclusion Specialist

The SOAR program's reintroduction and its first contract award represent a significant step towards inclusivity in the hospitality industry. By focusing on underrepresented entrepreneurs, Choice Hotels is addressing long-standing barriers to entry in hotel ownership.

The program's success metrics are noteworthy:

• 100% increase in Native American hotel owner agreements
• 30% increase in Hispanic and Latino owner agreements
• 59 new female-owned hotels since 2021

These figures indicate that SOAR is making tangible progress in diversifying hotel ownership.

The dedicated team for underrepresented populations sets Choice Hotels apart in the industry, potentially attracting diverse talent and fostering innovation through varied perspectives. This initiative could lead to improved brand reputation and customer loyalty, especially among socially conscious consumers and investors.

Financial Analyst

While specific financial details are not provided, this initiative has potential long-term financial implications for Choice Hotels. The focus on the extended stay market, which shows double the demand to supply, indicates a strategic move to capitalize on a high-growth segment.

Diversifying the franchisee base through SOAR could lead to:

• Accelerated brand expansion in underserved markets
• Increased franchise fee revenue
• Enhanced brand loyalty and market penetration

The conversion model for Suburban Studios, designed for quick and efficient transitions, suggests a cost-effective growth strategy. This approach could potentially yield faster returns on investment for both Choice Hotels and its franchisees.

Investors should monitor the program's scalability and its impact on Choice Hotels' overall growth rate and profitability in the coming quarters. The success of this initiative could position Choice Hotels favorably in the competitive hospitality landscape.

Conversion Agreement Signed with Choice's Suburban Studios Extended Stay Brand

NORTH BETHESDA, Md., Aug. 27, 2024 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest hotel companies, announced its first contract under the recently reintroduced SOAR (Supporting Ownership Access and Representation) program, designed to create hotel ownership opportunities for underrepresented entrepreneurs. Damon Healey of Eternal Companies, a real estate investment and asset management firm, executed a contract to convert two hotels in Georgia to Suburban Studios, one of Choice's four extended stay brands. The pair of properties opened on May 30.

"We're so excited to announce the first contract under the newly reintroduced SOAR program and to work with franchisees like Damon Healey. Our team is dedicated to opening doors so that underrepresented entrepreneurs can soar as hotel owners," said John Lancaster, vice president of franchise development and strategic programs at Choice Hotels International.

"Choice has, if not the best, one of the best franchise models, especially in the extended stay category. That's why I'm thrilled that our hard work and dedication, with the help of SOAR and our investors, including partners also within the African American community, have paid off and we've been able to successfully open two Suburban Studios in Georgia," said Damon Healey, founder of Eternal Companies. "The level of support we have received from Choice on how to navigate hotel ownership every step of the way has been next level. I hope my journey will help inspire others to get into hotel ownership."  

Suburban Studios' "Extended Stay Made Easy" design package provides flexibility to help enable quick and efficient conversions. The new Suburban Studios property details are as follows:

• Suburban Studios Columbus Bradley Park is located at 1721 Rollins Way in Columbus, Georgia, and has 92 rooms. The hotel is close to local attractions such as the National Infantry Museum, Flat Rock Park, the National Civil War Naval Museum, and the Columbus Botanical Garden.
• Suburban Studios Macon North is located at 3980 Riverside Drive in Macon, Georgia, and has 73 rooms. The hotel is conveniently located off I-75 and close to local attractions such as Ocmulgee Mounds National Historical Park, the Museum of Arts and Sciences, Amerson River Park, and the Allman Brothers Band Museum at the Big House.

"Choice is a leader in extended stay and the category continues to be one of the hottest in the hospitality industry with double the demand to supply," said Matt McElhare, vice president and lead for extended stay brands, Choice Hotels. "That's why we're so excited to welcome Damon Healey and Eternal Companies to the Choice extended stay family and hope to work with him on more projects in the future."

The reintroduction of the SOAR program earlier this year reaffirmed Choice's longstanding commitment to support underrepresented entrepreneurs in reaching their goal of making small business ownership a reality. Choice Hotels is the only hospitality company with a dedicated team solely focused on extending the opportunity of hotel ownership to underrepresented populations. Since the program's inception more than 20 years ago, Choice has proudly awarded and financially supported more than 370 franchise agreements with underrepresented minority and veteran entrepreneurs.

In 2023, Choice's Emerging Markets program, now SOAR, executed 28 new franchise contracts, including with African American, Hispanic, Native American, veteran and women entrepreneurs.  This included 9 contracts with African American hotel owners and 17 contracts with women owners through the HERtels by Choice program, a program designed by women for women to empower female entrepreneurs throughout their ownership journeys. In 2023, the number of agreements signed with Native American hotel owners doubled over the prior year, and the number of agreements with Hispanic and Latino owners increased by 30%. Since the HERtels by Choice program launched in 2021, approximately 80 women have participated in the program, leading to 59 new female-owned hotels.

Read more about Damon Healey's experience as a Choice Hotels franchisee here: https://lodgingmagazine.com/paving-the-way-to-extended-stay-how-franchisors-can-set-up-developers-for-success/

For more information about SOAR, as well as Choice Hotels development opportunities, visit www.choicehotelsdevelopment.com/diversity.

Suburban Studios®: Hotels for Real Life 
Suburban Studios offers longer-staying guests a comfortable, affordable extended stay experience with hassle-free registration and just the right hotel amenities. With more than 100 locations across the United States, our hotels feature studio suites with in-room kitchens, 24/7 laundry facilities, free Wi-Fi and premium movie channels, and bi-weekly housekeeping. For more information, visit www.choicehotels.com/suburban.  

About Choice Hotels® 
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in upscale and a leader in midscale and extended stay, Choice® has nearly 7,500 hotels, representing more than 630,000 rooms, in 45 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com. 

Addendum 
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852 or by email at: development@choicehotels.com.

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/choice-hotels-announces-first-contract-awarded-under-recently-reintroduced-soar-program-to-support-hotel-ownership-opportunities-for-historically-underrepresented-entrepreneurs-302230769.html

SOURCE Choice Hotels International, Inc.

FAQ

What is the SOAR program by Choice Hotels (CHH)?

SOAR (Supporting Ownership Access and Representation) is a program by Choice Hotels designed to create hotel ownership opportunities for historically underrepresented entrepreneurs, including minorities, veterans, and women.

Who was awarded the first contract under Choice Hotels' (CHH) reintroduced SOAR program?

Damon Healey of Eternal Companies, a real estate investment and asset management firm, was awarded the first contract under the reintroduced SOAR program.

How many Suburban Studios properties did Damon Healey convert under the SOAR program with Choice Hotels (CHH)?

Damon Healey converted two hotels in Georgia to Suburban Studios under the SOAR program with Choice Hotels.

How many franchise agreements has Choice Hotels (CHH) awarded to underrepresented entrepreneurs through SOAR?

Since the program's inception over 20 years ago, Choice Hotels has awarded and financially supported more than 370 franchise agreements with underrepresented minority and veteran entrepreneurs.

How many new franchise contracts did Choice Hotels (CHH) execute with diverse entrepreneurs in 2023?

In 2023, Choice Hotels executed 28 new franchise contracts with diverse entrepreneurs, including African American, Hispanic, Native American, veteran, and women entrepreneurs.