and improvement since 2013 suggests that the company may be increasing their level of solvency. They are still in a decent position to maintain their interest and debt payments although they are still below the level seen before the recession. Figure 9: Choice Hotels Interest Coverage Ratios13
The revenue per available room, average daily rate and occupancy rates have increased since 2011 suggesting that they are improving their financial gain as seen in figure 10. For Choice Hotels, the average daily rate, and the occupancy rates are significant to the companies performance being 100% franchised as most revenue is derived from royalty fees that are based on the gross amount earned per room.
Figure 10: Choice Hotels RevPAR, ADR and Occupancy13 …show more content…
They consider the Cambria Hotel and Suites as upscale competing with brands like Hilton Garden Inn and Courtyard.11 The brand Ascend is difficult to classify as this is more boutique in nature and is individual hotels with their individual brand identity but overall is classified by the company as upscale.11 While Comfort Inn and Comfort Suites are upper midscale, and principal competitors would be Holiday Inn Express, Hampton and Country Inn & Suites.11 The Sleep Inn is defined by the company as being in the midscale with main competitors being Microtel and La Quinta.11 Clarion brand is defined by the company as midscale and identifies principal competitors as Four Points by Sheraton and Radisson.11 Another midscale option offered by Choice Hotels is their quality brand, and they identify the competitors of this brand as Best Western and Ramada.11 Mainstay Suites would also be defined as midscale with competitors listed as TownePlace Suites and Candlewood Suites.11 The Suburban Extended Stay brand is an economic brand with competitors like Value Place and Extended Stay America.11 Econo Lodge is another economic brand that competes with the likes of Red Roof Inn, and Super 8.11 The last brand Choice Hotels has is the Rodeway Inn, and this is also an economical …show more content…
This is brand new and has not yet been rolled out of the company, but it is expected that they will partner with vacation rental management companies to offer this service to their guests, and the management companies would get to use Choice Hotels reservation system as one perk.16 With an estimated market share of $24 to $28 billion, Choice Hotels is looking to gain ground in this area to improve their financial position.16
Price
The average daily rate amongst the domestic franchised hotels in 2015 was $79.86,11 and this correlates with the company’s product mix which focuses on the midscale and economy brands more than other brands that would demand higher room rates.
Place
With Choice Hotels deriving most of their revenue from domestic operations in the United States it has headquartered this business in Rockville, MD while maintaining corporate offices in London and Phoenix Arizona. Franchisees and physical locations are throughout the United States and in more than 35 countries but having more than 80% of their physical presence in the United
The revenue per available room, average daily rate and occupancy rates have increased since 2011 suggesting that they are improving their financial gain as seen in figure 10. For Choice Hotels, the average daily rate, and the occupancy rates are significant to the companies performance being 100% franchised as most revenue is derived from royalty fees that are based on the gross amount earned per room.
Figure 10: Choice Hotels RevPAR, ADR and Occupancy13 …show more content…
They consider the Cambria Hotel and Suites as upscale competing with brands like Hilton Garden Inn and Courtyard.11 The brand Ascend is difficult to classify as this is more boutique in nature and is individual hotels with their individual brand identity but overall is classified by the company as upscale.11 While Comfort Inn and Comfort Suites are upper midscale, and principal competitors would be Holiday Inn Express, Hampton and Country Inn & Suites.11 The Sleep Inn is defined by the company as being in the midscale with main competitors being Microtel and La Quinta.11 Clarion brand is defined by the company as midscale and identifies principal competitors as Four Points by Sheraton and Radisson.11 Another midscale option offered by Choice Hotels is their quality brand, and they identify the competitors of this brand as Best Western and Ramada.11 Mainstay Suites would also be defined as midscale with competitors listed as TownePlace Suites and Candlewood Suites.11 The Suburban Extended Stay brand is an economic brand with competitors like Value Place and Extended Stay America.11 Econo Lodge is another economic brand that competes with the likes of Red Roof Inn, and Super 8.11 The last brand Choice Hotels has is the Rodeway Inn, and this is also an economical …show more content…
This is brand new and has not yet been rolled out of the company, but it is expected that they will partner with vacation rental management companies to offer this service to their guests, and the management companies would get to use Choice Hotels reservation system as one perk.16 With an estimated market share of $24 to $28 billion, Choice Hotels is looking to gain ground in this area to improve their financial position.16
Price
The average daily rate amongst the domestic franchised hotels in 2015 was $79.86,11 and this correlates with the company’s product mix which focuses on the midscale and economy brands more than other brands that would demand higher room rates.
Place
With Choice Hotels deriving most of their revenue from domestic operations in the United States it has headquartered this business in Rockville, MD while maintaining corporate offices in London and Phoenix Arizona. Franchisees and physical locations are throughout the United States and in more than 35 countries but having more than 80% of their physical presence in the United