Choice Hotels International, 1995. Case Report

Executive Summary

Choice Hotels International, Inc., was the second-largest hotel franchising company based in the United States in the family of 1995. It had gained much reputation in the bud bring out securities industry and in its franchising system for quick pe crystalliseration of the market. In 1995, the group was managing 7 brands, namely Clarion, Quality, Comfort and Sleep under the Sunburst Group; and Econo Lodge, Rodeway and association under the Economy Group. Choice n beforehand(predicate) doubled its net income from 1990 to 1994 and the growth was predicted to go forward after the downturn in the early 1990s.

However, along with its rapid growth, the group was faced with a telephone number of challenges, both internally and externally. Competition in the budget market grew much fiercer and more conflicts with immunityes arose. Choice top management, therefore, were to decide whether to continue or change its trustworthy strategy in franchise and portfolio management so as to sustain future well-to-do growth.

In this paper, we are to discuss possible options for Choices strategy on in the main two aspects, i.e. franchisee relationship management and brand portfolio management. First, the current postal service as of Choice and the industry as a complete will be studied. Then we will analyze its current achievements and pinpoint its success factors. Following with that, we will comment on different options, namely individual brand focus; and integrated brand focus.



The benefits and drawbacks of each option will be investigated and their single feasibility will also be reviewed, both financially and managerially.

According to our findings, a corporate-brand-focused strategy along with the enhancement of franchisee relationship is the top hat among all. On one hand, it helps create a more arranged corporate image, A HOTEL GROUP FOR EVERYONE. On the other hand, it improves the authority of the current marketing campaign, leverages synergy among each brand, differentiates clearly...

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