Country Inn & Suites by Radisson Achieves Strong Performance Gains

Rhea-AI Summary

Choice Hotels International (NYSE: CHH) reports significant performance improvements for Country Inn & Suites by Radisson since its integration with Radisson Hotels Americas two years ago. The brand achieved a 19-point increase in RevPAR Index and a 20% rise in direct online contribution.

Key achievements include increased revenue from group and business travelers, higher booking conversion rates, and 38 new properties added to the development pipeline. The company introduced a refreshed guestroom design in 2023, receiving positive feedback with 84% guest approval.

Choice Hotels launched ChoiceConnect, a mobile-friendly owner's portal, and demonstrated success with revenue optimization tools like ChoiceROCS and ChoiceMAX. Hotels using ChoiceROCS showed a 2% higher RevPAR Index compared to non-participating properties in 2024.

Positive

• 19-point increase in RevPAR Index
• 20% rise in direct online contribution
• 38 new properties added to development pipeline
• 84% guest approval rate for new room design
• 2% higher RevPAR for properties using ChoiceROCS
• Increased revenue from group and business travelers

Negative

• None.

Insights

Financial Analyst

Choice Hotels' strategic integration of Country Inn & Suites by Radisson is delivering substantial performance improvements two years post-acquisition. The 19-point RevPAR index increase and 20% growth in direct online contribution represent significant operational enhancements that directly strengthen Choice's competitive position in the upper midscale segment.

The addition of 38 new properties to the development pipeline indicates strong franchisee confidence and supports Choice's long-term growth trajectory. These expansion efforts, coupled with technology investments like ChoiceROCS (driving a 2% RevPAR index advantage) and ChoiceMAX, demonstrate a sustainable growth strategy focused on both revenue optimization and franchisee support.

The successful integration validates Choice's acquisition strategy and showcases their ability to enhance acquired brand performance through strategic investments and proprietary technology platforms. Their industry-leading franchisee retention rate further strengthens the revenue visibility of their fee-based business model. The partnership with Bridge for financing solutions addresses a critical barrier to expansion, potentially accelerating future development pace.

Choice's ability to drive specific operational improvements across multiple performance metrics (direct bookings, group/business travel revenue, digital conversion rates) reflects effective execution of their brand enhancement strategy, positioning them to capture additional market share in the competitive upper midscale segment.

NORTH BETHESDA, Md., March 10, 2025 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the leading hotel franchisors in the industry, has propelled the performance of Country Inn & Suites by Radisson in the two years since its combination with Radisson Hotels Americas. Driven by Choice's strategic investments in brand enhancements and the power of its state-of-the-art franchisee support system, Country Inn & Suites has achieved a 19-point increase in RevPAR Index, a 20% rise in direct online contribution, and an increase in revenue from group and business travelers year-over-year. The Radisson Americas brands have seen increased digital traffic and higher booking conversion rates, leading to new hotel development commitments, including 38 new Country Inn & Suites added to the pipeline in the last two years.

Owners have also benefitted from Choice's popular direct channels, ChoiceHotels.com and the Choice Hotels mobile app, which have achieved a year-over-year increase in booking conversion rates following a relaunch of the website and the app customer experience.

"Country Inn & Suites by Radisson has performed well above the goals we set out for the brand when it joined the Choice family of brands two years ago," said Judd Wadholm, Senior Vice President and General Manager of Choice Hotels' upper midscale, midscale and economy brands. "We are committed to a long-term strategy to give this brand an even stronger edge in the competitive upper midscale segment and to unlock additional channels for our owners to help grow their revenue."

As the Upper Midscale category leader, Choice Hotels has sharpened Country Inn & Suites' brand promise, deepening guest satisfaction to drive increased stays. The company introduced a refreshed guestroom design in 2023, featuring sophisticated finishes, subtle color accents, and functional furnishings. In response to this design, 84% of guests reported they would likely stay at a Country Inn & Suites hotel.

"We've been thrilled to see guests respond so enthusiastically to the initial design refresh, which marked just the first step in reimagining the brand for today's travelers. Looking ahead, we're focused on innovating in key areas where we see the greatest opportunities to delight guests and help drive greater returns for owners," said Deborah Gürün, Director of Brand Management and Strategy for Country Inn & Suites by Radisson.

With an industry-leading franchisee retention rate, Choice Hotels continuously invests in its world-class suite of technological solutions, simplifying owners' hotel operations and maximizing opportunities to grow their hotels' business. Last year, the company launched ChoiceConnect, a mobile-friendly owner's portal that allows franchisees to manage their properties remotely and seamlessly access their operational metrics in one place.

Several owners have experienced the benefits of these investments.

Chandresh Patel, owner of the Country Inn & Suites by Radisson in Gurnee, Illinois credits Choice's support systems, particularly the Choice Hotels Revenue Optimization Consulting Services (ChoiceROCS), as a key factor for increasing his hotel's revenue, helping drive his decision to invest in buying a second Country Inn & Suites in Wisconsin.

"The results we've achieved with ChoiceROCS have exceeded expectations," said Patel. "This system did an excellent job in dynamically adjusting our pricing and promotions throughout the year so that we weren't leaving any revenue opportunities on the table, even during the slower seasons."

Choice found that in 2024, upper midscale hotels that engaged with ChoiceROCS sustained an average 2% more in RevPAR Index year-over-year, compared to hotels not on the program.

Kyle Davis, owner of the Country Inn & Suites by Radisson in Texarkana, Texas, joined Choice Hotels through the 2022 integration. He has also grown his revenue through the company's tools, including the award-winning ChoiceMAX, an advanced, mobile-first revenue management solution that adapts hotel rates to changes in the market using real-time data, giving owners more time to focus on their properties' day-to-day operations.

"ChoiceMAX has been a game-changer for our property," said Davis. "Its ability to instantaneously adapt to market conditions has helped us grow our revenue since we joined Choice Hotels. It's an invaluable tool for keeping our hotel priced competitively and efficiently, particularly during a time when many of our competitors are losing revenue."

Choice Hotels has committed to making it easier for prospective owners to finance their hotel investment. It recently partnered with the innovative digital platform Bridge to help provide new and existing Choice hotel owners with access to affordable financing solutions.

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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 more than 650,000 rooms, in 46 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.

Country Inn & Suites®: I Love This Country
Country Inn & Suites by Radisson is a leading upper midscale brand designed to give guests an experience of generous hospitality through inviting service and products. Franchised or owned and managed in the Americas by Choice Hotels International, Country Inn & Suites hotels feature complimentary hot breakfast, a signature freshly baked cookie, and welcoming social spaces that include an indoor fireplace to make guests feel at home. For more information, visit https://www.choicehotels.com/country-inn-suites.

Forward-looking Statements
This communication includes "forward-looking statements" about future events, including anticipated development, hotel openings and performance. Such statements are subject to numerous risks and uncertainties, including construction delays, availability and cost of financing, and the other "Risk Factors" described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, any of which could cause actual results to be materially different from our expectations.

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SOURCE Choice Hotels International, Inc.

FAQ

What performance gains did Country Inn & Suites by Radisson achieve under Choice Hotels (CHH)?

The brand achieved a 19-point increase in RevPAR Index, 20% rise in direct online contribution, and increased revenue from group and business travelers.

How many new Country Inn & Suites properties were added to CHH's pipeline since the Radisson acquisition?

38 new Country Inn & Suites properties were added to the development pipeline in the last two years.

What was the impact of ChoiceROCS on Country Inn & Suites RevPAR in 2024?

Hotels using ChoiceROCS maintained a 2% higher RevPAR Index year-over-year compared to non-participating properties.

What percentage of guests approved the new Country Inn & Suites room design launched in 2023?

84% of guests reported they would likely stay at a Country Inn & Suites hotel following the room design refresh.