Choice Hotels Announces Two New SOAR Contracts Supporting Hotel Ownership Opportunities for Underrepresented Entrepreneurs

Rhea-AI Summary

Choice Hotels International (NYSE: CHH) announced two new contracts under its Supporting Ownership Access and Representation (SOAR) program, which supports hotel ownership for underrepresented entrepreneurs. The contracts include an 82-room WoodSpring Suites in New Mexico and a 49-room Rodeway Inn in Illinois. These are part of 17 SOAR contracts signed year-to-date, reflecting an increase from 1 to 2 contracts per month in the last five years. Since its inception, Choice has awarded 387 franchise agreements through SOAR. The program demonstrates Choice's commitment to fostering diversity in hotel ownership and providing support to veteran and minority entrepreneurs.

Positive

• Increased SOAR program contract rate from 1 to 2 per month in last 5 years
• Expansion of hotel portfolio with two new properties
• Strong track record with 387 franchise agreements awarded through SOAR program
• Strategic growth in extended stay segment with 500+ properties

Negative

• None.

Insights

Market Research Analyst

The announcement of two new SOAR contracts represents incremental progress in Choice Hotels' diversity initiatives but has minimal immediate financial impact on the $6.8B market cap company. While the program's acceleration from 1 to 2 contracts per month shows improved execution, these specific properties - an 82-room WoodSpring Suites and a 49-room Rodeway Inn - are relatively small additions to Choice's portfolio of over 7,500 hotels.

The strategic value lies in the extended stay segment expansion, particularly with WoodSpring Suites, as this sector continues to show strong demand-supply dynamics. However, the individual property impact is too small to materially affect near-term earnings. The SOAR program's total of 387 franchise agreements over 20 years, while socially important, represents only about 5% of Choice's total property portfolio.

NORTH BETHESDA, Md., Nov. 18, 2024 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH) today announced two new contracts as part of its Supporting Ownership Access and Representation (SOAR) program, which aims to help empower and support hotel ownership for underrepresented entrepreneurs. The new contracts – a WoodSpring Suites in Truth or Consequences, New Mexico, and a Rodeway Inn in Effingham, Illinois – are part of the 17 SOAR contracts signed year-to-date. During the first 15 years of the SOAR program, Choice averaged 1 contract per month and has increased that to an average of 2 per month in the last five years.

"Our latest SOAR contracts with veteran and Latino hotel owners in New Mexico and Illinois reflect Choice's unwavering commitment to fostering diversity in hotel ownership and bringing new, diverse voices into the industry," said John Lancaster, vice president of franchise development and strategic programs at Choice Hotels International. "By providing them unparalleled support and training, Choice helps them every step of the way to ensure they SOAR in their hotel ownership journey."

Walter Barela and Brain Resendez of Peak Hospitality, a hotel acquisition and asset management firm, executed a contract to open a WoodSpring Suites in Truth or Consequences, New Mexico. The 82-room hotel is slated to begin construction next year and will cater to the area's wellness-focused and adventure-seeking visitors drawn by attractions like natural hot springs and Spaceport America. Choice is a leader in extended stay, recently opening its 500th property in the category. Extended stay continues to be one of the hottest segments in the hospitality industry with demand continuing to exceed supply.

Ben Rohlfing, Amanda Rohlfing, and Bob Schultz executed a conversion contract for Rodeway Inn Effingham in Illinois. Mr. Rohlfing is a former Navy Electrician's Mate Nuclear, and Ms. Rohlfing is a former Army MP. The 49-room Rodeway Inn opened in October and aims to offer affordable lodging for visitors to Effingham's local attractions, including Lake Sara and the Effingham Performance Center. The hotel is located at 1400 Thelma Keller Dr, Effingham, IL 62401.

"Choice Hotels and the SOAR program was there to help direct me with all the things I needed to know to be a successful hotel owner," said Ben Rohlfing.

The SOAR program is part of Choice's longstanding commitment to support underrepresented entrepreneurs in reaching their goal of making small business ownership a reality. Choice Hotels is the first hospitality company to have a dedicated team solely focused on extending the opportunity of hotel ownership to underrepresented populations. Since its inception more than 20 years ago, Choice has awarded and offered financial support for 387 franchise agreements for veterans and underrepresented entrepreneurs under the program.  

For more information on the SOAR program and Choice Hotels' ongoing commitment to empowering underrepresented hotel owners, please visit Choice Hotels SOAR Program.

About Choice Hotels® 
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The one to watch in upscale and a leader in midscale and extended stay, Choice® has over 7,500 hotels, representing nearly 635,000 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.

 

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SOURCE Choice Hotels International, Inc.

FAQ

What are the two new SOAR contracts announced by Choice Hotels (CHH)?

Choice Hotels announced contracts for an 82-room WoodSpring Suites in Truth or Consequences, New Mexico, and a 49-room Rodeway Inn in Effingham, Illinois.

How many SOAR contracts has Choice Hotels (CHH) signed year-to-date in 2024?

Choice Hotels has signed 17 SOAR contracts year-to-date in 2024.

How many franchise agreements has Choice Hotels (CHH) awarded through the SOAR program?

Choice Hotels has awarded and offered financial support for 387 franchise agreements for veterans and underrepresented entrepreneurs through the SOAR program.

What is the current monthly average of SOAR contracts for Choice Hotels (CHH)?

Choice Hotels now averages 2 SOAR contracts per month, up from 1 contract per month during the first 15 years of the program.