Magnuson reports 151 Choice Hotel franchise conversions

September 24, 2013

Magnuson Hotels, the world’s largest independent hotel group, today announced the conversion of 151 Choice Hotel properties to its low cost brand and marketing platform.

The 151 Choice Hotels switching to Magnuson Hotels encompass 37 US states, Canada and UK since September 2005. Thirty four per cent of the conversions have occurred within the past 24 months.

Market conditions contributing to the 151 Choice Hotel conversions are detailed in a new overview of the US Franchise Deficit. The Magnuson Worldwide report states that as global economic growth slows with simultaneous hotel industry commoditisation, hotel operators seek lower cost substitutes to regain profits.

Magnuson attributes the 2010-2014 five-year economic impact of US hotel franchising at $272 Billion in lost revenues to hotel owners and surrounding communities. The report states that the $272 Billion US Franchise Deficit is comparable to the US Deficit; any slight incremental economic growth is far outweighed by unproductive and unnecessary spending.

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