Choice Hotels Signs With Legacy Partners to Develop Five Sleep Inn Hotels Outside of Houston, Texas

USA, Rockville, Maryland. July 11, 2019

Choice Hotels International, Inc. (NYSE: CHH) has signed an agreement with Legacy Partners, LLC to develop five Sleep Inn hotels outside of Houston, Texas. The first hotel is slated to open in 2020.

"With more than 550 Sleep Inn properties currently open or in the pipeline worldwide, Sleep Inn continues to be a strong leader in the midscale segment that appeals to business-savvy developers and guests alike," said Brian Quinn, head of development, new construction, Choice Hotels. "The brand's Designed to Dream prototype offers developers the lowest cost-to-build in the midscale segment, while guests love its stylish design and amenities."

All five Houston-area Sleep Inn hotels will have four stories and 60 rooms. The hotels will be built in the following cities:

- Crosby

- Texas Waller

- Texas Liberty

- Texas Dayton

- Texas Humble

- Texas

The locations are within driving distance to several major corporate headquarters in the region's booming energy industry, including ConocoPhillips, Enterprise Products Partners, and Plains All American Pipeline. Once open, the hotels will be a short distance from popular leisure attractions, such as Minute Maid Park, NRG Stadium, and The Galleria shopping mall.

"Houston, an ever-growing city, has thriving industries in healthcare, energy, and manufacturing," said Sazmin Momin, Owner, Legacy Partners LLC. "We knew signing this agreement to develop properties with Choice was a good investment. Sleep Inn's prototype targets both business and leisure travelers that are looking for an inviting, simple but timeless space - the ultimate ‘home away from home'."

"We are fortunate to be given an opportunity to grow and represent Choice Hotels in communities across Houston. These properties, once completed, will be a wonderful addition to our service portfolio as a company," said Afsha Maknojia, Owner, Legacy Partners LLC.

Sleep Inn's Designed to Dream prototype and nature-inspired aesthetic have sparked its rapid expansion across the U.S. and resonated with guests. Choice Hotels also recently unveiled a new Sleep Inn logo with a cursive design and eclipsing moon against its signature purple background. Sleep Inn hotels are planned to open in top markets across the U.S., including in Bronx, N.Y., Oklahoma City, and Spokane, Wash.

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Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.