Franchise Directory

This company offers a lot of hospitality choices. Choice Hotels is a leading hotel franchisor with more than 5,500 locations in the US and about 40 other countries. Its flagship brands include Comfort Inn, one of the largest limited-service brands with about 2,400 properties; and Quality Inn, which serves the midscale hotel segment through more than 1,200 locations. Its Econo Lodge chain offers lodging primarily for budget-minded travelers. Other brands include the full-service Clarion chain, Rodeway Inn budget hotels, and Sleep Inn. Chairman Stewart Bainum and his family own nearly 50% of the company.

With 60 years in business, Choice Hotels is ranked #2 overall in our ranking for longevity, as well as #2 in Web visibility (a measure of brand awareness). Since travelers generally make reservations online, Web visibility is a key factor for a hotel's success. Choice Hotels' more than 5,500 locations in the U.S. and abroad give it a system size ranking of 15. The company's financial strength rankings and growth rankings are solid as well, both at #67.

Hotels will face challenges in the current recession, and company president Stephen P. Joyce has said he expects modest declines this year. But because a significant number of its properties are value-focused, and because it targets both business and leisure travelers, Choice Hotels is in a good position to weather the economic storm.

One factor that differentiates Choice Hotels is its focus on recruiting minority franchisees. In 2008, the National Minority Franchising Initiative named Choice Hotels one of the top 50 franchises for minorities for the second time. The company's aggressive efforts to recruit minority franchisees include creating a dedicated Web site, holding franchise seminars to educate minority entrepreneurs about franchising and the hotel industry, and creating networking groups. The company is also working to provide franchise opportunities for first-time hotel owners, and has created an Emerging Markets team to recruit franchisees who are new to the lodging industry.