Module 4

Choice Hotels International is currently mastering an efficient practice known as strategic groups. This company has three main strategic groups to better attract and gain their target markets at every economic level.

The first one is the high-end hotel brands. The Ascend hotel collection as well as the Cambria Suites are included in this group. Under this strategic group, decisions are made to attract affluent customers by using diversification strategies. They furnish suites by designer amenities like high quality towels and sheets, furniture, stylish carpets high tech devices, and full room services like restaurant and dry cleaning.

The second group consist of brands like Econolodge, Sleep Inn, Mainstay Suites, Suburban and Rodeway Inn, and works with lower end brand motels. These are more economic friendly to customer wallets by providing the basic need of a room. These motels are often placed in inexpensive real estate and near restaurants.

The third would be mid-level hotels like Comfort Inn, Comfort Suites, Quality, and Clarion. They are above motels and below high-end hotels. They are usually located along touristic areas like theme parks, highway locations, and or small towns. These brands focus more on limited services

Partnerships and joint-ventures have been the quality-focus strategic practice for Choice Hotels and they are excelling in this than most of its competitors.

The main Joint venture occurred back in 1993, when Choice Hotels International and Journey’s End, popular hotel group in Canada, joined to create what is now, the biggest chain in Canada known as Choice Hotel Canada. This added 267 properties and 23,000 rooms to Choice’s portfolio, not only dominating the U.S., but Canada’s lodging markets as well!

The next and recent exiting joint –venture moves to the UK. Joining power with Akkeron Hotel Group, a very influential and well known hotel group in the UK, Choice Hotels International is ready to take its international influence to another level. Its primary focus is attaining most of Europe’s market attention. This joint venture brings a 25% increase to the UK Choice Hotel portfolio with an additional 611 rooms.

You might ask how these partnerships are quality and innovative strategic practice. Let’s keep in mind that Choice Hotels International operates an award winning global loyalty program with more than 16.5 million Choice Privilege members. This brings a great deal of quality to the company by brand recognition, brand reliability, and brand loyalty. At the same time, this company has maintained being number one in industry innovativeness by being the leader in the Hotel franchisee not only in the U.S. and Canada, but soon in Europe too.

The company’s customer-based strategic practices are strong, growing and reshaping