Choice Hotels International opens 69th annual convention with focus on powering the future of franchise ownership

Addressing thousands of owners, operators and partners, president and CEO Patrick Pacious delivered a keynote underscoring the event’s theme: Powering the Future. The convention features nearly 100 educational sessions, a vendor trade show, and brand updates aimed at supporting franchisees in growing revenue and reducing costs.

“Everything we do at Choice Hotels is about delivering value to hotel owners. The stronger we and our franchisees grow together, the more we can re-invest in their future success,” said Pacious.

He emphasized that Choice’s size and performance have made it not only larger, but also more resilient. With over 7,500 hotels globally and a growing share of business travellers — now accounting for 40 per cent of all stays — the company is using its scale to attract higher-yield guests and reinvest in tools that deliver value to franchisees.

Driving performance through scale and investment

Choice reported several key performance highlights, including:

• More than 70 million loyalty program members, with a 13 per cent increase in average length of stay and a 30 per cent jump in reward redemptions.
• A 6 per cent year-over-year increase in website conversions, with a 14 per cent increase in upscale booking conversions in Q1 2025.
• Operational cost savings of over $25 million identified in 2024 by Area Directors, averaging $33,000 per participating property.
• An average 9 per cent saving on food costs through a new group purchasing program launched in July 2024.
• $81 million in incremental revenue delivered through ChoiceROCS, a data-driven revenue optimisation program, including a 100-basis-point RevPAR Index premium for participating properties.

“Becoming bigger has allowed us to build a better and stronger business for you,” said Pacious.

Leveraging partnerships and guest demand

Pacious highlighted the company’s use of scale to negotiate lower online travel agency (OTA) fees and supplier costs. Group business revenue rose 45 per cent year-over-year in Q4 2024, while transient revenue in the upper-midscale segment increased by 20 per cent.

Strategic partnerships have played a significant role in driving guest bookings. In 2024, AARP members booked more than 1.1 million room nights, while hotels with official AAA appointments saw an average return on investment of $50,000.

Technology and AI in support of franchisees

Choice Hotels is continuing to develop AI-powered systems across several business areas, including dynamic pricing, direct marketing, self-service tools for small business clients, and group booking platforms.

Pacious outlined four new technology-driven initiatives launching over the next two years:

1. Flexible rate management tools for franchisees.
2. A self-service platform for small and mid-sized corporate clients.
3. AI-powered digital marketing to target specific customer segments.
4. A streamlined group booking tool to improve RFP handling and conversion.

Segment leadership and brand growth

Choice reinforced its leadership in the midscale and extended stay segments, with new prototype designs for Comfort and Country Inn & Suites aimed at driving operational efficiency and brand consistency. The company also reported that one in every four midscale hotels in the U.S. now carries the Quality Inn brand, which marked its 85th anniversary last year.

In extended stay, the company continues to grow its footprint. Half of all economy and midscale extended stay hotels open or under construction in 2024 carried a Choice brand. Everhome Suites is projected to have 25 open properties by the end of 2025, and WoodSpring Suites maintained gross operating profits above 55 per cent.

In the upscale and upper-upscale category, Choice added more than 110,000 rooms in 2024. Its loyalty members now have access to 180,000 upscale rooms globally through partnerships with Westgate Resorts and Preferred Hotels & Resorts.

Looking ahead

Pacious closed the keynote with a message of momentum and commitment. “Today’s Choice is the industry’s one to watch,” he said, citing investment in technology, brand evolution and loyalty as key pillars for future success.