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Choice to franchisees: We’ll split renovations 50-50
How do you get a franchisee to fix up a property in a tight market? You offer to split the cost.
Choice International is doing just that. It has followed up its ongoing hotel "refresh" program with a $40-million incentive program to encourage franchisees to get with the program sooner rather than later.
The company announced yesterday that qualifying US Comfort properties can apply for a forgivable promissory note to pay for up to 50% of the cost of eligible improvements.
Monies spent on renovations by September 30, 2014, will not have to be paid back.
Choice has been emphasizing upgrades to its Comfort properties with the Re-Imagined strategy, launched in 2012.
The incentive program is concentrated on guest-facing, capital-intensive items such as carpet, furniture, and mattresses, as well as upgrades to the free breakfasts, new flat panel TVs, and refreshed beds and bedding,
Choice says its research indicates overall intent to stay at Comfort hotels nearly doubles at properties with the new look, and that guests are willing to pay more for the rooms.
Choice also last year announced tougher penalty fees for franchisees found not in compliance.
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