Diversity Incentive Fact Sheet

Choice Hotels Diversity Ownership Initiative
Choice Hotels International® is committed to achieving greater diversity in the lodging industry.
Increasing the number of underrepresented owners in our system is a key corporate initiative
and we have dedicated personnel focused on this effort. Our industry-leading Diversity Incentive
Programs are designed to reduce upfront costs and provide additional support to new diverse
hotel developers. This is a great opportunity for you to diversify your assets into the hotel sector.
ChoiceHotelsDevelopment.com
Standard Incentive:
For new construction or converted midscale and economy brand hotels. When you select your
hotel brand, if it is a Comfort Inn®, Comfort Suites®, Quality®, Sleep Inn®, Ascend Hotel Collection®,
Clarion®, MainStay Suites® or Suburban® hotel, you may qualify to receive an incentive loan of
$1,500 per room up to $125,000 or $750 per room up to $50,000 for Econo Lodge® and Rodeway
Inn® properties. If you open a Cambria® hotels & suites, you may qualify to receive up to $200,000.
Re-Licensing Incentive:
If you qualify, you will receive a 50% reduction of the affiliation fee if you purchase an
existing Choice Hotels brand property.**
Diversity Incentive
Programs:*
Choice Hotels® has three separate,
substantial Incentive Programs to help
underrepresented, qualified individuals
enter into the rewarding business of
hotel franchising. By taking advantage
of our incentives, you will only just
begin to experience how committed we
are to diversifying our system. These
incentives are the Standard, Sleep Inn,
and Relicensing incentives.
Sleep Inn Incentive:
Sleep Inn is our new-construction brand that provides hotel developers with low costs for
construction and operations, along with the ability to optimize real estate, which helps to lower
overall start-up costs. The Sleep Inn Diversity Incentive, valued at up to $155,000, was developed
to allow an easier transition into the lodging market. Our incentive includes the following:
• Feasibility Study Reimbursement: Most
lenders require hotel developers to provide
a feasibility study prior to providing hotel
construction financing. Choice Hotels
recognizes this required expense and if you
qualify we’ll reimburse up to $10,000 for the
cost of your feasibility study.
• A 50% Affiliation Fee Reduction: Our standard
affiliation fee is a minimum of $40,000; as part
of the Incentive Program, we will reduce the
minimum fee to $20,000 if you qualify.
• Management Fee Contribution: Additionally,
if you qualify, Choice Hotels will contribute
up to $50,000 toward the first year’s cost of
a professional management company or
general manager’s salary. The reassurance of a
professional management company or general
manager may increase financing options for
first-time hoteliers. It also enables you to learn
best practices for operations quickly. More
importantly, it can help you align with your
competitive set much faster.
• Grand Opening Incentive: $75,000 paid
shortly after the grand opening of your hotel
to be used for any hotel-related purpose.
ChoiceHotelsDevelopment.com
*Choice Hotels offers diversity incentives in the form of a development loan to qualified diverse new franchisees. Terms and conditions apply; see applicable Franchise Disclosure Document dated April 1, 2015 for qualifications and details.
**Reduced Affiliation Fee Program for relicensed hotels is contingent upon approval of a franchise and cannot be combined with any other Diversity Incentive Program. See applicable Franchise Disclosure Document dated April 1, 2015.
This advertisement is not an offering. For New York: An offering can only be made by a prospectus filed first with the Department of Law in the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: Comfort Inn and Comfort Suites #F-3577;
Quality Inn #F-48; Sleep Inn #F-1799; Clarion #F-1673; MainStay Suites #F-3269; Econo Lodge #F-3576; Rodeway Inn #F-2691; Cambria #F-4986; Suburban Extended Stay #F-5274; Ascend Hotel Collection #F5980. A copy of the Franchise Disclosure Document may be obtained through
contacting Choice Hotels International at 1 Choice Hotels Circle, Rockville, MD 20850, or [email protected].
© 2015 Choice Hotels International, Inc. All rights reserved.
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