Choice Hotels International, Inc. (NYSE: CHH) announced today the signing of a development agreement for Choice's Quality Hotel and Clarion Hotel brands with Boli Hotel Management Company Ltd. The deal marks the launch of the first Clarion and Quality Hotels in China, and the continual expansion of its international business.
The development will begin in Hangzhou, one of China's most popular tourist destinations, with plans to expand across the region. Known for its historic relics and natural beauty, Hangzhou provides a scenic backdrop for the Choice Hotels portfolio.
"With several Comfort Inn hotels already located in China and performing successfully, it is a natural step to introduce other brands within theChoice Hotels portfolio to the region," said Mark Pearce, senior vice president of Choice Hotels' International Division. "Our partnership with Boli Hotel Management Company is a significant milestone not only because it marks the launch of our development efforts for Clarion and Quality hotels in China, but because it represents the opportunity for local developers to partner with an international hotel company."
Through Choice Hotels' development model, the company is uniquely positioned to experience significant growth for its portfolio across Asia andEurope. Affiliating with Choice Hotels allows international operators to focus on the day-to-day challenges of running a hotel while capitalizing on the many benefits afforded by a recognizable brand and robust distribution platform.
"Global tourism is on the rise and there is substantial opportunity for our portfolio of hotels to expand internationally," continued Pearce. "We are excited to introduce attractive and affordable hotels to the China market, and eagerly anticipate our growth in the region over the next few years."
Choice Hotels International, Inc. franchises more than 6,300 hotels, representing more than 500,000 rooms, in the United States and more than 35 other countries and territories. As of December 31, 2013, 422 hotels, representing more than 31,000 rooms, were under construction, awaiting conversion or approved for development in the United States. Additionally, 81 hotels, representing approximately 7,200 rooms, were under construction, awaiting conversion or approved for development in more than 15 other countries and territories.
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