Skift Take
It’s never too early to start planning for growth, but even bullish leadership teams need to focus on the uncertain near-term before playing offense with conversion targets.
Executives at Choice Hotels think they have the winning portfolio formula to excel at the growth strategy most major hotel brands are planning for the coronavirus recovery.
Leadership at global hotel brands like Marriott, Wyndham, and Hyatt all agreed on a single post-pandemic business strategy during their respective earnings calls over the last week: Build by brand conversion. With the construction lending environment for hotels on ice during coronavirus, converting an existing hotel to one of a brand’s many flags is likely the leading source of growth during the downturn. But Choice Hotels thinks its focus on leisure travel and, more recently, extended stay brands give it the best start in the brand conversion race.
“While we do expect new franchise agreements to be lower than last year, we do see development opportunities on the horizon,” Choice Hotels President and CEO Patrick Pacious said Monday during a first quarter earnings call. “We’re
