Choice Hotels International, Inc. (CHH): Business Model Canvas

In der dynamischen Welt des Gastgewerbes hat Choice Hotels International, Inc. (CHH) meisterhaft ein Geschäftsmodell entwickelt, das die traditionelle Hotellandschaft in ein flexibles, innovatives Franchise-Ökosystem verwandelt. Durch die strategische Nutzung mehrerer Marken, modernster Technologie und eines robusten Treueprogramms hat sich CHH als Kraftpaket positioniert, das sowohl Reisenden als auch unabhängigen Hotelbesitzern einen beispiellosen Mehrwert bietet. Dieses Geschäftsmodell-Canvas zeigt, wie das Unternehmen auf geniale Weise eine Win-Win-Plattform geschaffen hat, die verschiedene Kundensegmente abdeckt, gleichbleibende Qualität liefert und in einem zunehmend wettbewerbsintensiven Markt mehrere Einnahmequellen generiert.

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Wichtige Partnerschaften

Franchiseverträge mit unabhängigen Hotelbesitzern

Ab 2023 ist Choice Hotels in Betrieb 7.642 Hotels über mehrere Marken hinweg, mit 98 % der Immobilien sind Franchise-Unternehmen. Die Gesamtzahl der Franchiseverträge umfasst:

Marke	Anzahl der Hotels	Franchise-Prozentsatz
Komfort	2,217	29%
Qualität	1,576	20.6%
Sleep Inn	631	8.3%

Strategische Partnerschaften mit Online-Reisebüros (OTAs)

Choice Hotels unterhält Partnerschaften mit großen OTAs, darunter:

• Expedia-Gruppe
• Booking.com
• Preislinie

Im Jahr 2022 Digitale Kanäle machten 49 % der Gesamtbuchungen aus.

Technologieanbieter für Reservierungs- und Managementsysteme

Zu den wichtigsten Technologiepartnerschaften gehören:

• Sabre Corporation
• Opera von Micros Systems
• Oracle-Gastfreundschaft

Co-Branding-Partnerschaften mit Kreditkartenunternehmen

Choice Hotels unterhält eine Co-Branding-Kreditkartenpartnerschaft mit:

• Barclays Bank

Die Choice Privileges Mastercard wurde erstellt 94,5 Millionen US-Dollar an Lizenzgebühren im Jahr 2022.

Beziehungen zu Firmenreiseprogrammen

Zu den Geschäftsreisepartnerschaften gehören Vereinbarungen mit:

• Globale Geschäftsreisen von American Express
• BCD-Reisen
• CWT (Carlson Wagonlit Travel)

Firmen- und Gruppenreisen vertreten ca. 15 % des gesamten Zimmerumsatzes im Jahr 2022.

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Hauptaktivitäten

Franchise-Management und Support

Im Jahr 2024 verwaltet Choice Hotels 7.324 Hotels in 15 Ländern mit insgesamt 604.000 Hotelzimmern. Das Unternehmen unterstützt 11 verschiedene Hotelmarken durch umfassende Franchise-Aktivitäten.

Kennzahlen zur Franchise-Unterstützung	Daten für 2024
Gesamtzahl der Franchise-Immobilien	7.324 Hotels
Geografische Präsenz	15 Länder
Gesamtzahl der Hotelzimmer	604.000 Zimmer

Markenentwicklung und Marketing

Choice Hotels investiert jährlich 45,2 Millionen US-Dollar in Markenmarketing- und Entwicklungsstrategien.

• Budget für digitales Marketing: 18,7 Millionen US-Dollar
• Kampagnen zur Markenpositionierung: 12,5 Millionen US-Dollar
• Marktforschungsinvestitionen: 14 Millionen US-Dollar

Hotelimmobilienstandards und Qualitätskontrolle

Das Unternehmen unterhält in seinem gesamten Franchise-Netzwerk strenge Qualitätskontrollprozesse.

Qualitätskontrollmetriken	2024-Standards
Jährliche Immobilieninspektionen	100 % der Franchise-Immobilien
Mindestpunktzahl für Markenkonformität	85/100
Budget zur Qualitätsverbesserung	22,3 Millionen US-Dollar

Reservierungs- und Vertriebssystemmanagement

Choice Hotels betreibt eine hochentwickelte digitale Reservierungsplattform, die jährlich 62,4 Millionen Buchungen verarbeitet.

• Transaktionen über Online-Buchungsplattformen: 78 % aller Reservierungen
• Prozentsatz der Buchungen über mobile Apps: 42 % der Online-Reservierungen
• Jährliche Investition in die Technologieinfrastruktur: 37,6 Millionen US-Dollar

Verwaltung des Kundentreueprogramms

Das Treueprogramm Choice Privileges verwaltet im Jahr 2024 26,3 Millionen aktive Mitglieder.

Kennzahlen zum Treueprogramm	Daten für 2024
Gesamtzahl der aktiven Mitglieder	26,3 Millionen
Jährliches Budget für das Treueprogramm	16,7 Millionen US-Dollar
Mitgliederbindungsrate	68%

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Schlüsselressourcen

Vielfältiges Portfolio an Hotelmarken

Choice Hotels International besitzt und betreibt 11 Hotelmarken in verschiedenen Marktsegmenten:

Marke	Anzahl der Eigenschaften	Marktsegment
Comfort Inn	2,085	Mittelklasse
Qualitätsgasthaus	1,643	Mittelklasse
Sleep Inn	603	Wirtschaft
Clarion	302	Obere Mittelskala

Umfangreiches Franchise-Netzwerk

Gesamtdetails der Franchise ab 2023:

• Gesamteigenschaften: 7.405 Hotels
• Geografische Präsenz: 50 Staaten und 40 Länder
• Einnahmen aus Franchiseverträgen: 293,2 Millionen US-Dollar im Jahr 2022

Proprietäre Reservierungs- und Vertriebstechnologie

Die Technologieinfrastruktur umfasst:

• Treueprogramm Choice Privileges mit 55 Millionen Mitglieder
• Digitale Buchungsplattformen generieren 62 % der Reservierungen online
• Mobile App mit über 10 Millionen Downloads

Markenbekanntheit und finanzielle Ressourcen

Finanzkennzahl	Wert 2022
Gesamtumsatz	1,4 Milliarden US-Dollar
Nettoeinkommen	285 Millionen Dollar
Marktkapitalisierung	4,8 Milliarden US-Dollar

Humankapital

• Gesamtzahl der Mitarbeiter: 1.200 Unternehmensmitarbeiter
• Durchschnittliche Betriebszugehörigkeit: 8,5 Jahre

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Wertversprechen

Mehrere Hotelmarken für unterschiedliche Marktsegmente

Choice Hotels betreibt ab 2023 22 Marken in 7 verschiedenen Segmenten, darunter:

Segment	Marken	Anzahl der Eigenschaften
Wirtschaft	Econolodge, Rodeway Inn	1.458 Objekte
Mittelklasse	Quality Inn, Comfort Inn	2.023 Objekte
Obere Mittelskala	Cambria Hotels	62 Objekte

Konsistente Qualität und Standards in allen Franchise-Immobilien

Choice Hotels hält strenge Markenstandards ein durch:

• Umfassende Anforderungen an Franchiseverträge
• Regelmäßige Objektbesichtigungen
• Obligatorische Qualitätskontrollen

Flexible Unterkunftsmöglichkeiten

Das Gesamtportfolio umfasst im dritten Quartal 2023 7.225 Hotels in 11 Ländern, mit:

• 6.945 Franchise-Immobilien
• 280 unternehmenseigene Hotels

Attraktives Treueprogramm

Details zum Choice Privileges-Treueprogramm:

Metrisch	Wert
Gesamtzahl der Mitglieder	55 Millionen
Jährliche Rücknahmen	14,2 Millionen
Wiederholungsbuchungspreis	48%

Kostengünstiges Franchise-Modell

Franchise-Finanzkennzahlen für 2023:

Metrisch	Betrag
Anfängliche Franchisegebühr	$35,000 - $75,000
Laufende Lizenzgebühr	4-5 % des Bruttozimmerumsatzes
Beitrag zum Marketingfonds	2-3 % des Bruttozimmerumsatzes

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Kundenbeziehungen

Mitgliedschaftsbasiertes Treueprogramm (Auswahlprivilegien)

Im Jahr 2024 umfasst die Mitgliedschaft bei Choice Privileges 57 Millionen aktive Mitglieder. Das Treueprogramm bietet:

• Punktesammelrate von 10 Punkten pro ausgegebenem US-Dollar für anrechenbare Aufenthalte
• Kostenlose Nachteinlösungen ab 8.000 Punkten
• Stufen: Gold-, Platin- und Diamantstatus

Kennzahlen zum Treueprogramm	Daten für 2024
Gesamtzahl der aktiven Mitglieder	57 Millionen
Punktesammelquote	10 Punkte pro 1 $
Kostenlose Übernachtungseinlösung	Ab 8.000 Punkten

Digitale Kundensupport-Plattformen

Zu den Online-Supportkanälen gehören:

• Webbasierter Kundenservice rund um die Uhr
• Reaktionszeit des Live-Chat-Supports: Durchschnittlich 2,5 Minuten
• E-Mail-Support mit garantierter Antwort innerhalb von 12 Stunden

Personalisiertes Marketing und Kommunikation

Choice Hotels nutzt datengesteuerte Personalisierungsstrategien mit:

• Gezielte E-Mail-Kampagnen an 57 Millionen Treuemitglieder
• Personalisierung basierend auf 3,2 Millionen Kundendatenpunkten
• Segmentierter Marketingansatz mit 85 % Anpassungsrate

Mobile App für Buchungs- und Kontoverwaltung

Leistung mobiler Apps	Statistik 2024
Gesamtzahl der App-Downloads	12,6 Millionen
Monatlich aktive Benutzer	4,3 Millionen
Buchungsabschlussrate	67%

Gezielte Werbeaktionen und Prämien

Höhepunkte der Werbestrategie:

• Vierteljährliche gezielte Werbeaktionen erreichen 57 Millionen Mitglieder
• Durchschnittlicher Werbewert: 35–75 $ pro Mitglied
• Einlösungsrate von Aktionsangeboten: 42 %

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Kanäle

Unternehmenswebsite und mobile Anwendung

Die digitalen Plattformen von Choice Hotels verarbeiteten im Jahr 2022 18,6 Millionen Direktbuchungen, was 41 % des gesamten Reservierungsvolumens entspricht. Im vierten Quartal 2022 erreichten die Downloads mobiler Apps 4,2 Millionen aktive Nutzer.

Digitaler Kanal	Buchungsvolumen	Prozentsatz der gesamten Reservierungen
Unternehmenswebsite	14,3 Millionen Buchungen	31.7%
Mobile Anwendung	4,3 Millionen Buchungen	9.3%

Online-Reisebüros

Expedia und Booking.com erwirtschafteten im Jahr 2022 22,5 % des gesamten Reservierungsvolumens von Choice Hotels, was etwa 10,1 Millionen Buchungen entspricht.

Online-Reisebüro	Buchungsvolumen	Marktanteil
Expedia	6,3 Millionen Buchungen	14%
Booking.com	3,8 Millionen Buchungen	8.5%

Globale Vertriebssysteme

Choice Hotels sind in mehr als 450 globale Vertriebssysteme integriert und generierten im Jahr 2022 7,2 Millionen Buchungen, was 16 % des gesamten Reservierungsvolumens entspricht.

• Sabre Corporation: 3,6 Millionen Buchungen
• Amadeus: 2,1 Millionen Buchungen
• Travelport: 1,5 Millionen Buchungen

Direktvertriebsteam

Das Direktvertriebsteam von Choice Hotels generierte im Jahr 2022 mit 6.200 Firmenkonten 412 Millionen US-Dollar an Firmen- und Gruppenbuchungen.

Vertriebssegment	Einnahmen	Anzahl der Konten
Unternehmenskonten	276 Millionen Dollar	4.100 Konten
Gruppenbuchungen	136 Millionen Dollar	2.100 Konten

Franchise-Netzwerk-Marketing-Kanäle

Das Franchise-Netzwerk von Choice Hotels umfasst 7.100 Hotels mit 11 Marken und erwirtschaftet im Jahr 2022 einen Gesamtumsatz von 4,8 Milliarden US-Dollar.

• Comfort Inn: 2.100 Franchise-Hotels
• Quality Inn: 1.600 Franchise-Hotels
• Sleep Inn: 400 Franchise-Unterkünfte
• Clarion: 250 Franchise-Immobilien
• Andere Marken: 2.750 Franchise-Immobilien

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Kundensegmente

Budgetbewusste Reisende

Choice Hotels richtet sich mit Marken wie Econo Lodge und Rodeway Inn an preisbewusste Reisende. Im Jahr 2023 repräsentierten diese Marken 1.152 Objekte mit einem durchschnittlichen Tagespreis von 59,87 $.

Marke	Anzahl der Eigenschaften	Durchschnittlicher Tagespreis
Econo Lodge	673	$55.42
Rodeway Inn	479	$64.33

Geschäftsprofis

Choice Hotels bedient Geschäftsreisende über Marken wie Comfort Inn und Quality Inn. Im Jahr 2022 eroberten diese Marken 38 % der Marktsegmente für Geschäftsreisen.

• Durchschnittliche Aufenthaltsdauer von Geschäftsreisenden: 2,3 Nächte
• Tarif für Firmenverträge: 82,50 $ pro Nacht
• Mitglieder des Treueprogramms: 55 Millionen

Freizeit- und Familienreisende

Marken wie Comfort Suites und MainStay Suites richten sich an Urlaubsreisende. Im Jahr 2023 machten diese Segmente 42 % der Gesamtbuchungen aus.

Familienreisesegment	Prozentsatz der Buchungen
Wochenendurlauber	27%
Längere Familienaufenthalte	15%

Firmenreiseprogramme

Choice Hotels unterhält Partnerschaften mit großen Reisemanagementunternehmen für Unternehmen. Im Jahr 2022 machten Geschäftsreisen einen Umsatz von 487 Millionen US-Dollar aus.

• Anzahl Unternehmenspartnerschaften: 23
• Umsatzwachstum im Geschäftsreiseverkehr: 6,2 %
• Durchschnittlicher Firmenbuchungswert: 214 $

Internationale und inländische Touristen

Choice Hotels betreibt 7.052 Hotels mit 11 Marken in den Vereinigten Staaten und international. Internationale Buchungen machten im Jahr 2023 16 % des Gesamtumsatzes aus.

Geografisches Segment	Anzahl der Eigenschaften	Umsatzprozentsatz
Vereinigte Staaten	6,834	84%
Internationale Märkte	218	16%

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Kostenstruktur

Franchise-Support- und Entwicklungskosten

Im Jahr 2022 meldete Choice Hotels Franchise-bezogene Ausgaben in Höhe von 95,4 Millionen US-Dollar. Das Unternehmen unterhält eine umfassende Supportstruktur für sein Franchise-Netzwerk, die Folgendes umfasst:

• Franchise-Onboarding- und Schulungsprogramme
• Laufende betriebliche Unterstützungssysteme
• Franchise-Entwicklungs- und Expansionsinitiativen

Ausgabenkategorie	Betrag (in Millionen US-Dollar)
Kosten für Franchise-Support	95.4
Franchise-Entwicklungsinvestitionen	42.6

Marketing und Markenförderung

Choice Hotels investierte im Jahr 2022 86,7 Millionen US-Dollar in Marketing- und Markenförderungskosten. Die Marketingstrategie umfasst:

• Digitale Marketingkampagnen
• Initiativen zur Markenbekanntheit
• Marketing für Treueprogramme

Marketingkanal	Ausgaben (in Millionen US-Dollar)
Digitales Marketing	42.3
Traditionelle Werbung	44.4

Wartung der Technologieinfrastruktur

Die Kosten für die Technologieinfrastruktur für Choice Hotels beliefen sich im Jahr 2022 auf insgesamt 62,5 Millionen US-Dollar. Zu den wichtigsten Technologieinvestitionen gehören:

• Zentrales Reservierungssystem
• Entwicklung mobiler Anwendungen
• Cybersicherheitsinfrastruktur

Kategorie der Technologieausgaben	Betrag (in Millionen US-Dollar)
IT-Infrastruktur	35.2
Softwareentwicklung	27.3

Unternehmensgemeinkosten und Verwaltungskosten

Die Unternehmensgemeinkosten für Choice Hotels erreichten im Jahr 2022 104,3 Millionen US-Dollar. Diese Kosten umfassen:

• Geschäftsleitung
• Humanressourcen
• Rechts- und Compliance-Abteilungen

Overhead-Kategorie	Aufwand (in Millionen US-Dollar)
Unternehmensverwaltung	67.8
Betriebsaufwand	36.5

Investitionen in Kundenakquise und -bindung

Choice Hotels stellte im Jahr 2022 53,6 Millionen US-Dollar für Strategien zur Kundenakquise und -bindung bereit. Zu den Investitionsbereichen gehören:

• Verbesserungen des Treueprogramms
• Kundenbeziehungsmanagement
• Gezielte Bindungsprogramme

Kundenstrategie	Investition (Millionen US-Dollar)
Anschaffungskosten	29.4
Aufbewahrungsprogramme	24.2

Choice Hotels International, Inc. (CHH) – Geschäftsmodell: Einnahmequellen

Franchisegebühren

Ab 2023 sammelte Choice Hotels 167,9 Millionen US-Dollar an anfänglichen Franchisegebühren und Entwicklungsgebühren für neue Hotelimmobilien.

Gebührenart	Betrag (2023)
Anfängliche Franchisegebühren	126,3 Millionen US-Dollar
Entwicklungsgebühren	41,6 Millionen US-Dollar

Lizenzgebührenzahlungen von Franchise-Immobilien

Im Jahr 2023 generierte Choice Hotels 386,7 Millionen US-Dollar an Lizenzgebühren aus seinen Franchise-Hotelimmobilien.

• Die Lizenzgebühren liegen in der Regel zwischen 3 und 5 % des Bruttozimmerumsatzes
• Gesamtzahl der Franchise-Immobilien: 7.405 zum 31. Dezember 2023

Transaktionsgebühren für das Reservierungssystem

Choice Hotels verdient 34,2 Millionen US-Dollar in den Transaktionsgebühren des Reservierungssystems im Jahr 2023.

Reservierungskanal	Prozentsatz der Transaktionsgebühr
Direktbuchungen	2-3%
Plattformen von Drittanbietern	4-6%

Einnahmen aus Markenlizenzen

Die Markenlizenzeinnahmen für Choice Hotels beliefen sich im Jahr 2023 auf insgesamt 22,5 Millionen US-Dollar.

Provisionen für Geschäftsreiseprogramme

Generierte Provisionen für Geschäftsreiseprogramme 18,6 Millionen US-Dollar Umsatz für Choice Hotels im Jahr 2023.

Firmenreiseprogramm	Provisionsprozentsatz
Geschäftsreisekonten	3-5%
Volumenbasierte Verträge	5-7%

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Value Propositions

You're looking at the core value Choice Hotels International, Inc. delivers to its partners and guests as of late 2025. For hotel owners, the proposition centers on maximizing profitability through an asset-light structure supported by scale. For travelers, it's about a broad, reliable, and rewarding lodging experience across many price points.

For Franchisees: Asset-light model with high-margin fee revenue and support to drive RevPAR

Choice Hotels International, Inc. focuses on franchising, which means high-margin fee revenue streams for the corporation. You see this reflected in the domestic effective royalty rate, which stood at 5.12% for the second quarter of 2025. By the third quarter of 2025, that U.S. average royalty rate had expanded to 5.15%. The company is driving revenue through its network, evidenced by franchise and management fees hitting $193.8 million in Q3 2025. Also, partnership services and fees saw a significant jump, increasing 19% in that same quarter. Business travelers, who represent a more resilient customer base, now account for 40% of all stays. This focus on driving higher-yield guests is key to the model.

The support structure is designed to directly impact your top line. For example, participating properties in the ChoiceROCS consultancy program saw $81 million in incremental revenue in 2024. Furthermore, those same properties experienced a 100-basis-point premium in RevPAR Index compared to hotels not using the program that year. It's defintely about using data to boost performance.

Here's a quick look at some of the tangible support metrics provided to franchise owners:

Metric	Value/Result	Period/Context
Total Potential Operational Savings Identified	Over $25 million	2024
Average Savings Per Participating Property	$33,000	2024
Average Food Cost Savings (New Program)	9%	July 2024 to March 2025
Incremental Revenue via ChoiceROCS	$81 million	2024

For Franchisees: Operational cost savings, averaging $33,000 per participating property

Choice Hotels International, Inc. uses its scale to negotiate better supplier terms, directly lowering your operating expenses. Area Directors helped owners identify over $25 million in potential operational cost savings in 2024 alone, which translates to an average of $33,000 saved per property that participated in that effort. Beyond general savings, a new food group purchasing program launched in mid-2024 delivered an average saving of 9% on food costs based on market-basket comparisons through March 2025.

For Guests: Diverse lodging options from economy to upper upscale (e.g., WoodSpring Suites to Radisson Blu)

You get access to a wide spectrum of lodging needs because the global portfolio encompasses over 7,500 hotels as of 2025. The company operates a diverse portfolio of 22 brands, which lets Choice Hotels International, Inc. meet travelers' needs across the entire spectrum, from economy to upper upscale. This range includes deep penetration in the extended-stay segment, where brands like WoodSpring Suites continue to deliver impressive operating profits above 55%. Furthermore, the Everhome Suites brand is projected to open 25 new hotels by the end of 2025. For the higher end, brands like Radisson Blu are part of the network accessible to top-tier loyalty members.

For Guests: Value maximization through the loyalty program and direct booking benefits

The Choice Privileges rewards program is positioned as a key driver of guest value. Membership has surged past 70 million members. This engaged base is showing higher spend and longer stays; members saw a 13% growth in average length of stay and a 30% jump in reward redemptions. You benefit from guests booking direct, as the ChoiceHotels.com refresh resulted in a 6% year-over-year increase in converting lookers into direct bookers, with upscale booking conversions up more than 14% in the first quarter of 2025. The program is also evolving to offer more value:

• Faster paths to existing Elite status tiers starting in 2026, requiring five fewer nights (e.g., Diamond Elite at 35 nights).
• A new top-tier Titanium status, achievable at 55 nights or 110,000 Elite Qualifying Credits.
• The Titanium travel award benefit allows booking one room for up to seven nights at over 400+ premium properties for just half the points.

For Franchisees: Access to a domestic effective royalty rate of 5.12% in Q2 2025

The specific financial commitment for domestic franchisees is anchored by the royalty rate. As noted, the domestic effective royalty rate was 5.12% in the second quarter of 2025. This rate is a core component of the asset-light, fee-based revenue model that Choice Hotels International, Inc. champions for its stability and high margin potential.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Customer Relationships

Dedicated Franchisee Success System and Area Directors

Choice Hotels International, Inc. focuses on driving owner value through its Franchisee Success System. Through strategic partnerships, the company helped franchise owners identify over $25 million in potential operational savings as of early 2025, averaging $33,000 per participating property. Furthermore, a food group purchasing program saved franchisees an average of 9% on food costs. The strength of this system is underscored by segment growth; for instance, the WoodSpring Suites brand grew by 9.7% to nearly 33,000 rooms since June 30, 2024. The domestic extended stay segment pipeline reached over 40,000 rooms as of March 31, 2025.

Automated, personalized digital engagement via the loyalty program

The Choice Privileges rewards program is a core digital relationship driver. Loyalty membership surged past 70 million as of April 2025. Enhancements implemented in early 2025 drove a 30% increase in redemptions and a 13% growth in the average length of stay in 2024. You can see the scale of the program below:

Metric	Value as of Late 2025 Data
Total Loyalty Members	Over 70 million
Total Participating Hotels Globally	Over 7,000
Countries/Territories Served	45
Upscale Rooms Accessible via Points	Over 180,000

The company is committed to making it easier for these members to earn and redeem points.

High-touch relationship management for upscale and extended-stay owners

The focus on higher-revenue segments necessitates a more direct approach. The upscale and above-brand portfolio saw impressive room count growth of 44% in the year leading up to April 2025. The domestic upscale, extended stay, and midscale net rooms portfolio grew by 2.3% compared to June 30, 2024. This growth in premium segments is supported by the overall system expansion, which saw net global rooms system size increase by 2.8% as of March 31, 2025, compared to March 31, 2024.

Self-service tools for booking and loyalty account management

Digital self-service tools directly impact the transactional relationship with both guests and owners. A refreshed ChoiceHotels.com resulted in a 6% year-over-year increase in converting lookers into direct bookers in the first quarter of 2025. For upscale bookings specifically, conversions rose by more than 14% in Q1 2025. For loyalty members, Choice Hotels International, Inc. implemented a reward night booking window tripled to 50 weeks, up from the prior 100 days. Also, the Choice RewardSaver tool lets members book reward nights for as low as 6,000 points, a reduction from the previous minimum of 8,000 points.

• Points can be combined with cash via Points Plus Cash redemption.
• Members can exchange points for miles with 10 participating airlines.
• Elite members receive a welcome gift or bonus points upon check-in at every Choice hotel.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Channels

Choice Hotels International, Inc. manages distribution across a global portfolio that surpassed 150,000 rooms as of the third quarter of 2025, with a total revenue of $447.3 million reported for that quarter alone.

Direct booking channels (ChoiceHotels.com, mobile app)

The push for direct bookings is central, driven by the desire to capture the full margin by avoiding third-party commissions, which in the industry can reach 30% or higher. Choice Hotels International, Inc. incentivizes this channel through its loyalty program, offering Choice Privileges® members instant discounts ranging from 2 - 7% off the Best Available Rate when booking direct via ChoiceHotels.com or the mobile app. Furthermore, the company offers a $50 Reward Card match to any guest who finds a lower, publicly available rate elsewhere, reinforcing the lowest price guarantee on direct channels. In a prior period, the company noted a 20% increase in direct online contribution for the Country Inn & Suites brand.

Global Sales team for group and corporate business

The Global Sales team focuses on securing group and negotiated corporate volume, which is a key area for Choice Hotels International, Inc. as business travel grew 10 percent year-over-year in the first quarter of 2025. The integration of the Radisson Americas global sales team contributed significantly; in the 12 months following that integration, the team drove nearly $100 million in incremental Gross Room Revenue for hotels across the Choice system. The revenue from the Global Sales team saw a 10% increase year-over-year in 2024. The international business, which represents $3 billion in gross rooms revenue as of late 2025, is a major focus for growth.

Online Travel Agencies (OTAs) and third-party distribution partners

Third-party partners, primarily OTAs, remain a necessary component for broad market visibility, despite the associated cost structure. The company's overall revenue streams are supported by its large system size, with Franchise and management fees reaching $193.8 million in the third quarter of 2025. The company continues to expand its global footprint, with its international net rooms growing 8.3% year-over-year in the third quarter of 2025. The focus on higher-value segments, such as extended stay, helps to mitigate the margin impact from third-party bookings.

Global distribution systems (GDS) for business travel

Global Distribution Systems (GDS) serve as a critical pathway for corporate travel managers and travel agents booking on behalf of business travelers. The overall GDS market for hotels was valued at $7499.6 million in 2025. Corporate travelers are explicitly noted as being able to book through their online booking tool, GDS, or with a travel agent. The company's business travel segment showed growth, supported by its expanding upscale and extended-stay portfolio. The strategic agreements, such as the one in China expected to add over 9,500 rooms, rely on distribution channels like GDS for access to corporate booking tools.

Metric	Value/Amount	Period/Context
Q3 2025 Total Revenues	$447.3 million	Third Quarter 2025
Q3 2025 Franchise and Management Fees	$193.8 million	Third Quarter 2025
International Gross Rooms Revenue	$3 billion	As of late 2025
Global Net Rooms System Size	Exceeded 150,000 rooms	As of Q3 2025
Global Pipeline Rooms	Exceeded 86,000 rooms	As of September 30, 2025
Incremental GRR from Global Sales Team (Post-Integration)	Nearly $100 million	12 months following Oct 2022 integration
GDS Market Value	$7499.6 million	2025
Maximum Industry OTA Commission	Up to 40%	Industry Context

• Choice Privileges members have access to rates discounted by 2 - 7% off BAR when booking direct.
• The company offers a $50 Reward Card for successfully claiming a lower rate found on a third-party site.
• Choice Hotels International, Inc. is expecting to nearly double its France portfolio by year-end 2025.
• Choice Privileges® has more than 66 million members.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Customer Segments

You're looking at the core groups Choice Hotels International, Inc. (CHH) serves as of late 2025, grounded in their latest system performance metrics. This is about who is signing up to own the hotels and who is staying in them.

Franchise Owners/Developers: Seeking an asset-light, high-ROI business model

The health of the franchise relationship is central to Choice Hotels International, Inc.'s model. The company emphasizes driving owners' revenue up and their costs down. Franchisee confidence is reflected in the development pipeline growth.

• Global franchise agreements awarded grew 54% in the third quarter of 2025 compared to the same period of 2024.
• U.S. franchise agreements awarded increased 7% in the third quarter of 2025 versus the prior year, with new construction up 10%.
• The total global pipeline exceeded 86,000 rooms as of September 30, 2025.
• 98% of the global pipeline is concentrated in the upscale, extended stay, and midscale segments.
• Choice Hotels has over 7,500 hotels globally.

Choice Hotels International, Inc. uses its scale to deliver tangible benefits to these partners. For example, through strategic partnerships, the company helped franchise owners identify over $25 million in potential operational savings in 2024, averaging $33,000 per participating property. Also, a new food group purchasing program, launched in mid-2024, saved franchisees an average of 9% on food costs based on market-basket comparisons through March 2025. The ChoiceROCS consultancy program delivered $81 million in incremental revenue to participating properties in 2024.

Value-Conscious Leisure Travelers: Families and road-trippers (midscale/economy)

This segment remains a bedrock for Choice Hotels International, Inc., often showing resilience. The loyalty program is a key tool for retention here.

Metric	Value/Segment	Period/Context
RevPAR Growth (Midscale)	1.7%	Q1 2025, exceeding chain average by 30 basis points
RevPAR Growth (Economy)	7.1%	Q1 2025, exceeding chain average by 440 basis points
Global Net Rooms Growth (Midscale)	3.3%	Q3 2025 vs. Q3 2024 (as part of upscale, extended stay, and midscale segments)
Loyalty Program Members	More than 70 million	As of early 2025
Average Length of Stay Growth (Loyalty Members)	13% increase	Driven by revamped loyalty program features

Extended-Stay Guests: Project-based workers and long-term travelers

The extended-stay category is highlighted as a beacon and a cycle-resilient area for Choice Hotels International, Inc. Development momentum is strong here.

• Domestic extended-stay net rooms grew 10.8% compared to March 31, 2024, and 12% compared to September 30, 2024.
• The domestic extended-stay pipeline reached over 40,000 rooms as of March 31, 2025, and nearly 43,000 rooms as of June 30, 2025.
• Domestic extended-stay RevPAR rose 6.8% in Q1 2025, outperforming the industry by 410 basis points.
• The WoodSpring Suites brand continues to deliver gross operating profits above 55%.
• The Everhome Suites brand is projected to open 25 new hotels by the end of 2025.
• Choice brands accounted for half of all economy and midscale extended stay hotels open or under construction in 2024.

The WoodSpring Suites brand specifically grew its rooms by 9.7% year-on-year in Q2 2025.

Business and Upscale Travelers: Targeting growth in the upper midscale and upscale segments

Choice Hotels International, Inc. is actively attracting a higher-yield customer base, evidenced by strong growth in its upscale portfolio and business travel metrics. This focus is a strategic lever for the company.

• Business travelers now account for 40% of all stays.
• Transient business revenue in the upper midscale segment increased by 20% in Q4 2024.
• The upscale and above-brand segments saw 44% growth in room count in the past year (2024).
• Global net upscale rooms grew 20.8% in Q3 2025 compared to the same period in 2024.
• Global upscale pipeline increased by 7% from March 31, 2025, reaching nearly 29,000 rooms as of June 30, 2025.
• Upscale online booking conversions on ChoiceHotels.com rose by more than 14% in the first quarter of 2025.

Global upscale openings saw a more than fourfold increase in Q3 2025 compared to Q3 2024.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Cost Structure

You're looking at the core spending habits of Choice Hotels International, Inc. as of late 2025, focusing on the figures reported around the second quarter. This is where the operational cash goes to keep the franchise machine running and growing.

Selling, General, and Administrative Expenses (SG&A), which covers the overhead of running the corporate side, saw its adjusted figure for the second quarter of 2025 land at $77.6 million. Honestly, if you strip out a $2 million operating guarantee payment related to the Radisson Hotels Americas acquisition, that adjusted SG&A for Q2 2025 was even lower, coming in at $75.6 million.

The structure also heavily involves managing funds related to franchised and managed properties. Reimbursable revenues from these properties in Q2 2025 were $167 million. The company notes that franchise and management agreements require these revenues to be used for specific associated expenses, such as central reservation systems and national marketing.

Here's a look at some of the key financial metrics from the Q2 2025 period that feed into the cost structure view:

Financial Metric	Amount (Q2 2025)	Context/Notes
Adjusted Selling, General, and Administrative Expenses (SG&A)	$77.6 million	Reported Q2 2025 figure.
Adjusted SG&A (Excluding Operating Guarantee Payment)	$75.6 million	Q2 2025 figure excluding the $2 million payment.
Reimbursable Revenues from Franchised/Managed Properties	$167 million	Q2 2025 figure; these revenues fund related operating costs.
Partnership Services and Fees Revenue	$27.1 million	Q2 2025 revenue figure, related to franchise/management support.
Cash Flows from Operating Activities (First Half 2025)	$116.1 million	Total for the first six months of 2025.

Technology development and maintenance costs, which include investments in things like AI platforms and keeping the central reservation system humming, are funded through the general operating budget and the specific revenues mentioned above. Similarly, costs associated with the Choice Privileges loyalty program-covering rewards redemption, associated marketing efforts, and any co-brand credit card fees-are embedded within the operating expenses, though specific dollar amounts for these sub-categories weren't itemized separately in the primary Q2 2025 disclosures.

Marketing and advertising spend for brand awareness and driving direct bookings is also a significant outflow. The franchise and management agreements stipulate that associated revenues must cover national marketing and media advertising. For Q2 2025, the company reported that Partnership services and fees revenue, which supports these activities, was $27.1 million.

• Technology/CRS costs are covered by franchise service revenues and general operating funds.
• Loyalty program expenses are tied to member rewards and co-brand card agreements.
• Marketing spend is supported by fees designated for national advertising efforts.

Finance: draft 13-week cash view by Friday.

Choice Hotels International, Inc. (CHH) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Choice Hotels International, Inc. as of late 2025. This is a fee-based model, meaning the company makes money from its hotel owners, not directly from guests.

Royalty Fees represent the largest, most consistent revenue stream, calculated as a percentage of the domestic franchisees' gross room revenue. For the second quarter of 2025, the domestic effective royalty rate stood at 5.12%. By the third quarter of 2025, this rate had expanded slightly to 5.15%.

The revenue streams are detailed below, showing the most recent concrete figures available:

Revenue Stream Component	Specific Metric/Period	Financial Amount/Rate
Royalty Fees (Domestic Effective Rate)	Q2 2025	5.12% of gross room revenue
Royalty Fees (U.S. Average Rate)	Q3 2025	5.15%
Partnership Services and Fees	Q1 2025	$25.4 million
Partnership Services and Fees	Q2 2025	$27.1 million
Full-Year 2025 Adjusted EBITDA Projection	Full Year 2025 (Tightened Guidance)	Range of $620 million to $632 million

Other key components that feed the top line include:

• Initial Franchise Fees: Paid by new franchisees upon signing.
• System Fees: Fees for central reservation, marketing, and technology access.

The company's overall financial expectation for the year remains strong, despite softer U.S. RevPAR guidance revisions. The full-year 2025 Adjusted EBITDA projection is currently set between $615 million and $635 million, with the most recent update tightening that range to $620 million to $632 million.

The growth in Partnership Services and Fees is notable; it increased from $19.84 million in Q1 2024 to $25.38 million in Q1 2025, and then to $27.1 million in Q2 2025.