Choice Hotels Australasia (CHA) has revealed plans to expand its economy brand, Econo Lodge, following unprecedented growth since its launch.
In just three years, Australia’s largest hotel franchisor has tripled its economy brand’s portfolio of properties. With no sign the demand for affordable rooms is slowing, it plans to focus investment on providing even more accommodation options for cost conscious business travellers and holidaymakers.
Launched in 2009 in the wake of the Global Financial Crisis, there are Econo Lodge properties operating across New South Wales, South Australia, Victoria and Queensland. In addition, it boasts three properties in New Zealand, bringing the total to 21 hotels – a milestone worth celebrating.
Considerable investment is planned over the next few years, the business has just opened a new Melbourne property, Econo Lodge Parkville Place, Brunswick and is looking to secure its first Econo Lodge franchises in Western Australia and Tasmania this year.
Trent Fraser, CHA’s recently appointed Chief Executive Officer, is aiming for an Econo Lodge offering in all Australian cities and regional areas. “Consumers are seeking value for money from a trusted brand and that’s the reason we are focussing investment on providing the Econo Lodge solution in every destination,” says Fraser.
Despite the challenging conditions the economic uncertainty brings, Fraser believes the opportunity for hotel owners is clear. “By becoming a franchisee and adopting the Econo Lodge stamp of approval, travellers are assured that they will get quality three to three and a half-star accommodation at the best possible price.”
Fraser adds, “As the market rapidly changes, it’s more important than ever to keep innovating and delivering consumer value to travellers wherever they are in Australia. I’m confident our ambitious expansion plans will see the Econo Lodge brand continue to expand rapidly throughout this region over the coming years. ”
Choice Hotels Australasia continues to see an increase in guest bookings, and has seen positive growth with a seven per cent increase in RevPAR in 2011(revenue per available room – the industry’s measure of performance, calculated by multiplying a hotel’s average room rate by its occupancy rate) across all of its brands.
Choice Hotels Australasia has 280 hotels across Australia, New Zealand and Singapore, with in excess of 14,000 rooms. CHA is a 100 per cent owned subsidiary of Choice Hotels International, a publicly listed (NYSE: CHH) company in the United States with more than 6,100 hotels and 495,000 rooms in more than 30 countries and territories.
Source = Choice Hotels Australasia