Choice Hotels International, Inc. 2015

© Choice Hotels International, Inc. 2015
Dear Hotel Owners, Operators, and Investors
We are pleased to introduce you to Choice Hotels International.
A global hotel industry leader with a 75 year history of brand and
service innovation, a commitment to your guests’ satisfaction,
and a passion for your profitability.
Our European business is key to our international expansion
plans and we are investing significant resources to ensure the
continued success of our rapidly growing number of European
franchisees.
Europe's leading hoteliers and investors choose to work with us
to achieve aggressive growth and performance objectives.
We invite you to learn why in this presentation.
Mark Pearce
SVP, International Division
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Together we
perform better
Choice Hotels is a global industry leader
We work on behalf of more than 6,300 hotels in
over 35 countries across the globe, making us
the world’s second largest hotelier.
Choice Hotels has a 75 year track record of
franchising success driven by a strong portfolio
of 11 brands, 4 currently available in Europe.
Our portfolio is backed by a commitment to
technological and service innovation, allowing
us to deliver a unique global-local servicing model.
Our experience and our market position has
made it possible for us to build one of the most
powerful marketing and distribution platforms
in the industry.
We deliver value to investors, operators, and guests.
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We exist to satisfy guests and drive owner returns
Every investment Choice makes is there to empower our owners
and operators.
Our success is defined by two key metrics:
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guest satisfaction and
optimised financial performance of your hotel asset or portfolio
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Our ability to consistently deliver results derives from our holistic
and balanced approach to product and service design.
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Our success depends on our holistic approach
We align with owners and operators from the top-down, to
deliver a strong collection of brands supported by a world-class
marketing and distribution infrastructure.
And our bottom-up, tailored operational support delivers
customised toolsets that are an answer to Europe's nuanced
market needs.
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We are committed to European growth and performance
Today we are well positioned to achieve rapid growth
across Europe.
Our global strengths, our local focus across Europe and our
portfolio of conversion and new-build brands offer a good fit
for the needs of today’s European hoteliers.
“Internationally, many
companies are focusing on Asia;
and we’re very active there too,
but for us it’s all about Europe.”
Steve Joyce, CEO
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Our regional commitment is guided by our global values
Our Mission:
Deliver a franchise success system of strong brands, exceptional
services, vast consumer reach and size, scale and distribution
that delivers guests, satisfies guests and reduces cost
for hotels owners.
Our Vision:
To generate the highest return on investment of any hotel
franchise.
Our Passion:
Your Profitability
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Our regional commitment is backed by increased strategic and resource focus
A 3-pronged approach to drive growth and long-term success for Choice and all our stakeholders.
Evolution of our regional brand strategy
Increased
strategic and resource focus
Enhancements to regional infrastructure and
expanded local services platforms
Direct Investment in strategic deals
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The evolution of our regional brand strategy
Our holistic pan-European brand strategy ensures continued
relevance and performance in an increasingly competitive
European marketplace.
Strategic evolution of brandspecific positioning towards
product differentiation; service
standards; marketing messages.
Key brand hallmarks drive
consistency of experience and
guest satisfaction without
taking away brand flexibility
and localisation:
Welcome experience
Overall guest room, bedding and bathroom
Breakfast
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Enhanced regional infrastructure and expanded local services platforms
By bringing our global infrastructure closer to Europe and
making incremental investments in our local services platforms,
Choice Hotels improves access to our world class revenue-driving
and cost-cutting resources.
Incremental investments
in technology, regional
infrastructure, local
support teams.
The design and roll-out
of enhanced franchise
services programs.
Realignment of both our
divisional and regional
organisation to support
accelerated growth and
enhanced performance.
New Choice Hotels European
headquarters in Amsterdam,
opened in 2014.
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Direct investment in strategic deals
We are focused on developing strategic growth opportunities with
regional owners and operators that share our vision by providing
financial and operational support for deals that align with our
long-term objectives.
Tailored financial and operational support for strategic projects
and qualified owners and operators
A focused European deal team
developing opportunities and underwriting Choice
investments in deals
New programs and streamlined processes
to enable rapid decision making and maximum creativity
in deal solutions.
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Our strategic growth initiative will drive long-term success
for Choice and all of our Stakeholders
• Increases competitiveness
Evolution of our regional brand strategy
Increased
strategic and resource focus
Drives
Enhancements to regional infrastructure
performance of
and expanded local services platforms
Choice-system
hotels
Direct Investment in strategic deals
• Expands and
strengthens portfolio
Drives guest
satisfaction and
• Drives revenues
owner returns
• Cuts costs
• Reduces complexity
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Our assets
Our brand portfolio
We provide a range of solutions for hotels positioned in
the midscale to upscale segments. Choice has always been
focused on finding the perfect balance between driving
consistent, relevant guest experiences and delivering flexibility
in brand implementation.
We respect the local building stock and local guest needs.
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A unique global-local model
Choice provides a local servicing infrastructure for every major
market in which it operates – comprehensive and personalised
franchise services are provided by an in-country team in
local language.
Local
The approach adapts the strengths of our global platform to
Personalised, local services
infrastructure and customised toolset
accommodate local nuance through operational flexibility and
service customisation, driving guest satisfaction and owner
returns across markets.
Global
Strong portfolio backed by a world-class marketing
and distribution infrastructure
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An unrivaled commitment to technological innovation
Choice was the only hotel company recently named on the Forbes list of 100 top innovative companies in the world.
Our technology-driven approach provides our franchisees with the tools to efficiently and effectively compete in today’s complex distribution environment.
Cloud-based PMS
Proprietary CRS
Mobile Platform
Emerging Channels
Big Data Insights
Choice develops its own
proprietary, state of the
art of systems to enhance
operational efficiencies and
guest experience.
We support our entire
global portfolio in-house,
unlike many competitors
who rely on multiple thirdparty platforms.
Choice Hotels has pioneered
mobile, by launching a
mobile distribution platform
three years ahead of some
of our European-based
competitors.
We continuously invest in and
explore emerging distribution
channels that can potentially
deliver reservations growth.
Choice gives our operators
the competitive edge
by providing them
with initiatives that
drive the future of our
brand, consumer, and
market strategy.
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Our financial strength
Choice Hotels strives to continuously improve its franchise offerings
to enhance its customers’ profitability and create the highest return on
investment of any hotel franchise.
Revenues ($US Millions)
Our solid financial position is due to the strong, growing and predictable
cash flows provided by the consistently growing base of hotels we have
open worldwide.
+ 7% Average
Annual Growth
in Revenues Since 2010
$3.6 Billion
Market Capitalization
(as of 18 Feb 2015)
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What can we
do for you?
We aim to enhance your returns
We’re consistently improving our ability to deliver enhanced
returns to our growing portfolio of European hotels.
Our service objectives:
Drive your revenues
through our marketing and distribution capabilities.
Cut your costs
through technological innovation, scale benefits,
and services support.
Simplify your business
through flexible brand programs along with targeted
development and comprehensive operations support.
Facilitate your growth
and long term success with our continued investment in
the business and direct capital support for strategic deals.
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We aim to drive your revenues
Enhance returns
Drive
revenues
Cut
costs
Reduce
complexity
Facilitate
growth
Provide extensive knowledge of branding and
channel optimisation.
Drive occupancy through our sophisticated global
distribution platform.
Focus sales on the right geography and segments to drive
reservations volume and higher rated business.
Industry-leading loyalty program drives ADR premium
and stay frequency.*
* In 2013, ChoicePriviliges guests delivered an average 7% rate premium as compared to non-members,
system-wide — Individual results may vary. In the same year, global CP members were twice as likely
to be repeat stayers at your hotel (Source: Medallia, Inc – Guest Insight Surveys)
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We aim to cut your costs
Enhance returns
Drive
revenues
Cut
costs
Reduce
complexity
Facilitate
growth
Proprietary technologies offer lower cost of ownership for
best-in-class solutions.
Unparalleled ability to rapidly deploy property
management system capabilities.
Cost-effective brand programs in revenue management,
procurement, digital marketing, call forwarding, resulting
in efficient operations.
Benefit from negotiated rates with GDS / OTAs that
our franchisees can access because of Choice’s scale.
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We aim to simplify your business
Enhance returns
Drive
revenues
Cut
costs
Reduce
complexity
Facilitate
growth
In Development
In Operations
Collaborate with owners and operators towards rapid and
efficient execution of large portfolio conversions. Have repositioned
portfolios as large as 46 hotels in as little as 3 months.
We enhance operations efficiency and consistency by supporting operators
with tools, training, and support to deliver optimal performance.
Work closely with owners and operators to complete PIPs, execute
action plans, and to bring the hotels online in order to meet the
investor’s timeframe.
Flexibility in brand implementation that respects local building stock
and local guest needs, giving owners and operators ability to focus
on what matters.
Invest in portfolio repositioning programs through a range of financial
vehicles to facilitate short and mid-term refurbishment programs.
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We aim to facilitate your growth
Enhance returns
Drive
revenues
Cut
costs
Reduce
complexity
Facilitate
growth
Choice can offer qualified owners and operators a range of customised services,
investment vehicles and incentive programs to support strategic deals.
Target objectives
Facilitate successful project completion
Modify risk/return profiles
Reward commitment to our brands
Tools
Participation in the form
of debt or equity
Signage and technology
incentives
Guarantee support
Flexible brand implementation
Capital formation assistance
Rapid portfolio conversion
Key money incentives
Customised deal terms and tailored
operational support programs
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What we offer?
Our brand portfolio
Our global infrastructure
Our bottom up support
Our European brands
Ascend Hotel Collection
Clarion
Clarion Collection
Quality
Comfort
Upscale Unique, Boutique,
and Historic
Full Service,
Upper Midscale
Boutique, Upper Midscale
Full Service, Midscale
Limited Service,
Midscale / Budget
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Ascend Hotel Collection
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Clarion
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Clarion Collection
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Quality
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Comfort
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Our global infrastructure
Choice supports owners and operators by providing the tools
and resources to compete efficiently and effectively in an
increasingly competitive marketplace and ever more complex
hotel distribution environment.
32
Our global distribution & marketing platform
Nearly $400 Million in System-Wide Spend
tools
Choicehotels.com
Customised, property-level hotel pages
Local language
Strong search engine presence
Global Distribution
System (GDS)
Online Travel Agents
(OTAs)
Connected to all major GDS:
High Third Party Visibility
Amadeus, Sabre, Worldspan, Galileo
Cost-Effective Scale-Driven
Agreement with Booking.com,
Travelocity, Orbitz, Hotels.com,
and more
Travel Agency Preferred Status
Call Centers
Dedicated Toll-Free Numbers
Commission-Free Reservations
8 Global Locations
Call Forwarding Program
American Express, Carlson Wagonlit Travel,
Helmsbriscoe Partnership
benefits
170 million annual visitors
High Conversion Rate
+10% ADR premium
on choicehotels.com, generating specific
revenues over $1.3bn.
industry-leading website converts
more looks to books.
driven by CRS over reservations
over other channels.
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Our award winning loyalty program
Choice Privileges
Membership Growth
Choice Privileges - our rapidly growing loyalty program is increasingly contributing to topline revenue
25.000
(Millions)
20.000
Comprehensive loyalty rewards program
Freddy Awards
15.000
Hotel Program of the Year
#2
Nearly 22
million members
worldwide, on average
growing 18% annually since 2009
7% ADR Premium
over non-members
Best Promotion for Redemption
(Two Stays Pays! Summer ‘12)
#2
Best Redemption Ability
#2
10.000
5.000
Best Customer Service
#2
2009 2010 2011 2012 2013 2014
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choiceADVANTAGE
Choice developed choiceADVANTAGE*, the only proprietary cloud-based property
management system in the industry deployed internationally on a common platform.
Benefits of a cloud-based system
Fast, cost effective deployment:
No hardware on-site, dramatically reducing
upfront costs of installing the system.
Low total cost of ownership:
Hosted centrally by Choice, reducing
ongoing maintenance costs for hoteliers
choiceADVANTAGE has
been deployed to 5,000+
franchisees worldwide
Only cloud-based system with massive
scale and global presence
Language customization
(Spanish, French, German, English)
Ten-year track record of stability,
scalability and rapid deployability
Key Features:
Web-Based Property Management System
Remote Web Access 24/7
Link to Central Reservations Systems
Rate & Inventory Management
Integrated Channel Manager with SiteMinder
*Ask about availability in your market
24/7 Help Desk Support
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Our strength in mobile
Choice pioneered the hotel industry’s mobile distribution expansion.
Back in 2009, we rolled out our mobile platform (years ahead of some
of our competitors!) and have been experiencing exponential growth in
system-wide mobile revenues ever since.
System-Wide Mobile Revenue Growth
1st
hotel app developed for iOS
#1
rated hotel brand app in Google Play
(as of December, 2014)
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Our bottom-up support
Business is not only about finances, it’s also about
people you trust.
Our local teams strive to create and nourish a close
and respectful relationships with owners and operators
across markets.
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Comprehensive operational support
In our key markets across Europe, in-country teams provide comprehensive and personalised franchisee
services in local languages.
Our franchisees consistently rank our local service teams as key to their success.
Quality Assurance
Training
Field Support
Property updates and improvement plans
Onsite and online, resulting in free and/or low cost.
Guest Satisfaction Assistance
Property re-positioning
Learning facilitated by staff and Choice University
modules, resulting in better revenue management,
property sales, loyalty and marketing.
Virtual Franchise Services Assistance
Brand standard reviews
Operations Resource Center
Call Forwarding programs enabling desk staff to
focus on the guest in front of them, while highly
trained sales agents convert calls to reservations.
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Scalable sales solutions
Our dedicated sales team leverages a deep knowledge of channel optimisation, benefits of scale in account relationships,
and seamlessly integrated technology solutions to drive incremental business at a lower cost for our hotels.
Sales Infrastructure
Program Support
Global Sales to secure and coordinate
worldwide clients
Choice Analytics to assess guest
segmentation and value, down to
the property-level
Regional Sales teams dedicated to
Europe’s most significant segments
and accounts
Area representatives and relationship
managers drive demand from
emerging markets
Optimised Performance
for all of our owners and
operators
Relationships with market intelligence
providers – STR, MKG, TravelClick,
D&B and others – to gain competitive
market share
Online RFP management system
to streamline capturing valuable
corporate business
Over 4000 active
40 Million Room Nights
negotiated accounts
visible to Choice through the
RFP process
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A simplified marketing strategy
Our local teams focus on strategic business planning and market execution, leveraging seamless integration between our marketing tools, local services and
global systems. This approach creates business advantages that drive the top and bottom line for hotels.
Extensive Digital Toolset
Tailored Services
Integrated Systems
Targeting, booking, and tracking clients has
never been so easy or so sophisticated.
Regional performance consultants continually
evolve long-term rate and inventory strategy,
advise property level sales and operations staff.
Our suite of proprietary rate and inventory
management systems offer dynamic pricing
abilities that automatically adjust to the market.
Revenue Management Services.
Integrated channel manager to provide
inventory and direct connectivity to all local
or regional third-party booking channels.
SEO, paid search, local search, and high
resolution property photos to secure high
placement across third party channels.
Multi-platform guest response and engagement.
Local marketing support and advertising design.
Seamless integration with best-in-class third-party
services such as RateGain and SiteMinder.
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Why act now?
Together we can achieve long-term success
Choice is actively looking to invest in strategic deals alongside
industry participants that have an established track-record, an
ambitious vision for the future, and a desire to work closely with
us to achieve it.
Now is the time to grow with us!
Who should contact us:
Owners, operators, and investors with a deep knowledge of
and experience in our key European growth market(s)
Owners or managers of core assets or mixed portfolios
seeking to enhance the value of their asset(s)
Multi-unit owners or operators with immediate plans
for growth (or exit)
National or Regional Chains facing stalled growth or underperformance
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We're investing in strategic opportunities
to drive mutual, long-term success across Europe,
Contact us now!
European Headquarters
Vijzelstraat 20
Contact: Max Cergneux
Contact: Dino Guiliano
4th Floor, Suite 404
Office: +44 20 7061 9600
Office: +31 20 820 3846
1017 HK Amsterdam, The Netherlands
Mobile:+44 7720 680455
Mobile: +31 6 1121 8133
email: [email protected]
email: [email protected]
United Kingdom Development
Western Europe Development
Central & Eastern Europe Development
Choice Hotels Europe (UK Office)
Choice Hotels Europe (France Office)
Choice Hotels Europe - (German Office)
Choice Hotels Europe - (Italy Office)
Covering England, Northern Ireland,
Covering Belgium, France, Spain, Switzerland
Covering Austria, Czech Republic, Germany,
Covering: Italy
Scotland, Wales
Lieu-dit Les Champcueils
Italy, Switzerland
Via Salandra, 18
2nd Floor
Bretigny Sur Orge Cedex, FR BP66-91223
Martin-Kollar-Straße 9
Roma, IT 00187
67-74 Saffron Hill
München, DE 81829
London, UK EC1N 8QX
Contact: Simon Bullough
Contact: Antoine Cadier, Bernard Guilbaud
Contact: Bruno Leroy
Contact: Vittorio Scarpello
Office: +44 20 7061 9600
Office: +33 1 69 80 19 19
Office: +49 89 42 00 15 11
Office: +39 06 8520 3244
Mobile: +44 07834 516934
Mobile Antoine: +33 6 07 62 63 04
Mobile: +49 173 888 06 28
Mobile: +39 331 49 88 791
Email: [email protected]
Mobile Bernard: + 33 6 86 99 32 99
Email: [email protected]
Email: [email protected]
Email Antoine: [email protected]
Email Bernard: [email protected]
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Together we
perform better
Thank you
Choice Hotels Europe team