With effect from 1 July 2022, Choice Hotels in India will transition from a direct franchise market to a master franchise model.
Under this arrangement, Suba Group of Hotels will assume responsibility as master franchise holder for the 58 Choice Hotels properties open and under development in India and hold the exclusive rights to develop the Clarion™, Quality™ and Comfort™ brands in the market.
All franchised hotels will remain within the Choice Hotels network under the brand and will continue to benefit from the extensive marketing, distribution, and franchisee performance services currently in place.
Choice Hotels Asia-Pacific CEO Trent Fraser said: “We’re incredibly excited to work with Suba Group of Hotels as we look to the next 15 years of portfolio growth for Choice Hotels in India.”
“Suba has an almost 30-year history in the region and has built a strong local offering in the midscale and upscale markets. Bringing the Clarion, Quality and Comfort brands to their portfolio is a natural fit, and we are delighted to welcome them to the Choice Hotels global network as a master franchisee.”
“The master franchise model has worked exceptionally well for Choice Hotels in other markets throughout Asia-Pacific, and indeed around the world. We’re confident in the collective value proposition this represents for current and prospective franchisees and are looking forward to welcoming many more properties to the Choice Hotels network in India through our collective efforts with the Suba team.”
Suba Group of Hotels, Managing Director, Mansur Mehta said: “The master franchise agreement is in line with our vision of becoming the largest hotel chain in India. With this agreement, Suba Group of Hotels will add 2200 Keys to our existing portfolio of 2,900 keys, taking our position to 5100 keys in 57 destinations across India. This acquisition will enable us to service customers looking for budget as well as star properties that meet business and leisure requirements.”
Mubeen Mehta, CEO of Suba Group of Hotels further added, “The Suba brand keeps up to the promise of responsible hospitality by offering the best-in-class service quality. Suba Group is the most reliable and profitable brand partner that extends full support to partnered hotels by way of branding, sales and project upkeep plans, thus, enabling revenue maximisation.”
Jaideep Dang, Managing Director of JLL Hotels and Hospitality Group South Asia: “We are delighted that JLL was able to assist Choice Hotels in identifying a strong partner in Suba Hotels Group to enhance the growth of their brands in India. This deal demonstrates an uptick in investor sentiment for the hospitality sector in India.”
JLL acted as an exclusive advisor to Choice Hotels Asia Pacific for this transaction.
For more information contact:
Louise Johnson, PR & Communications Manager, Choice Hotels Asia-Pacific
louise.johnson@choicehotels.com +61 455 530 855
About Choice Hotels Asia-Pacific
A good night’s sleep in a comfortable bed is something we all look forward to while travelling. And at Choice Hotels Asia-Pac this is a priority for us. Choice Hotels brands include the Ascend Hotel Collection, Clarion, Quality, Comfort and Econo Lodge. Choice Hotels Asia-Pac is a wholly-owned subsidiary of Choice Hotels International, Inc., a publicly listed (NYSE: CHH) company in the United States with over 7,000 hotels and nearly 600,000 rooms in 35 countries and territories.
About Suba Hotels Group
With over 5100 keys in 57 destinations across India, Suba Group of Hotels is one of the fastest-growing hotel chains in India, offering customers a wide range of hotels, from Budget to Upscale. Founded by Abubaker Mehta, the Suba Group of hotels operates under the label of 9 brands: Suba Hotels (upscale), Choice Hotels - which have Comfort (Budget), Quality (Upper-midscale) and Clarion (Upscale). The Click brand of hotels operates Click Hotels (Budget Hotels), Click Collection (Upscale Hotels) and Click Resorts. In the Budget segment, they have GenX and RNB.
With footprints across all major metros including tier 1 and tier 2 cities, Suba Hotels caters to modern travellers offering a unique stay experience and excellent quality services with superior facilities at affordable prices. All their properties offer spacious and sophisticated rooms, dynamic venues for hosting weddings, events and exhibitions, and a delightful dining experience at signature restaurants.
Forward-Looking Statement
This communication includes "forward-looking statements" about future events, including anticipated development and hotel openings. Such statements are subject to numerous risks and uncertainties, including construction delays, availability, and cost of financing and the other "Risk Factors" described in the Annual Report on Form 10-K and quarterly reports on Form 10-Q of Choice Hotels International, Inc., any of which could cause actual results to be materially different from our expectations.
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