Widely represented in the United States, Choice Hotels has made France one of its key markets in the EMEA region. Why is this?
Ricardo Losada Revol - We have been present in France for over 30 years. It is one of the world's great tourist destinations, with so much to offer the 63 million members of our Choice Privileges rewards programme. Its culture, its economy, its landscapes, its coastline... It is therefore logical that this market is one of our main targets in the EMEA region, along with Germany and the United Kingdom.
In fact, you're going to be stepping up your presence there thanks to the recent announcement of a franchise agreement with Zenitude Hotels, covering around thirty establishments. What does this group offer you?
Ricardo Losada Revol - Today, we have 31 hotels in France, not counting new additions, and thanks to this agreement, we will be doubling our portfolio by adding 33 additional establishments. That's more than 4,000 rooms added to our network throughout the country. Zenitude Hotels' portfolio includes resorts, as well as urban and suburban hotels, close to airports and business parks. This will enable us to broaden our footprint, particularly in terms of corporate customers and long-stay offers. So it's a key operator with whom we'll be able to continue to grow, as this young and ambitious company is keen to expand. This fits in perfectly with our own ambitions in France. As part of this partnership, we are already exploring development opportunities.
How will their establishments be integrated? Under which brands will they be marketed?
Ricardo Losada Revol - All their hotels will be converted to one or other of our brands, more than half this year and the other half next year. For example, their hotel at Paris CDG Airport will become a Clarion. But others may become a Comfort or an Ascend Hotel Collection, as is already the case with the Zénitude Hotel La Vallardiere Ascend Hotel Collection in Montpellier. At the same time, several establishments have been adapted for longer stays, including kitchenettes, laundry rooms and larger rooms such as 2-bedroom flats. This gives us the opportunity to introduce one of our long-stay brands in France in the future.
Following the unveiling of the relaunch programme for all your brands in Europe, how far have you got with this refresh?
Ricardo Losada Revol - In particular, all Zenitude hotels will adopt the new brand standards we have created for Comfor, Quality in the mid-range, Clarion in the upper mid-range 'full service' and for our 'soft brand' Ascend Hotel Collection at the top end of the market. This is a great opportunity to present our completely refreshed brands through flagships in France. Today, more than a quarter of our hotels in Europe are being transformed, five in the UK & Ireland region, others in the Czech Republic and France. In France, the Zénitude Hotel La Vallardiere has also completed its conversion to our Ascend Collection. So the process is ongoing. We work hand in hand with our franchisees without setting them unrealistic targets. We provide them with equipment, training and, in some cases, help them finance the refurbishment. In the end, this brand refresh programme should be finalised next year for almost all hotels in EMEA. As part of our brand refresh programme, in EMEA we have introduced our Sleep brand in the upper mid-range segment, and we expect to open our first hotel in the near future, although nothing has been confirmed yet.
Are you still aiming to double in size in Europe and France?
Ricardo Losada Revol - Absolutely. There are room to grow in the region, both organically and through acquisitions. Recently, we renewed and extended our master franchise agreement with Strawberry Group, formerly known as Nordic Choice Hotels, a key partner with around 300 hotels under our brands in the Nordic countries. At the same time, last year we signed a distribution agreement in Spain with Sercotel, whose properties are available for booking on our website. We are determined to continue our growth in this market.
With 1,222 of Choice's 7,727 hotels outside the United States, is the expansion of your group outside the US a priority?
Ricardo Losada Revol - We want the international division to become the growth driver for Choice Hotels and develop our Group's position in the international arena. We have finalised the acquisition of Radisson Hotels Americas in 2022 and its integration in 2023, which heralds their expansion on the American continent. Whether in the United States, where we are becoming a challenger in the upmarket segment thanks to the Cambria brand and the acquisition of the Radisson brands, or throughout the CALA region (editor's note: Caribbean and Latin America). In Asia-Pacific, while China is not a priority at the moment, we have a strong presence in Australia and New Zealand, and solid partners in India and Japan. In the Middle East, we have a master franchise agreement in Saudi Arabia. We don't have a presence in Africa, but we're looking forward to entering that continent.
Rapidly strengthening Choice Hotels' international presence: was this one of the reasons behind your takeover bid for the Wyndham group? Do you regret that it was not successful?
Ricardo Losada Revol - We can perfectly well live without them, given the many development opportunities available to us in Latin America, Asia-Pacific and Europe. But there is no doubt that the combination of Choice and Wyndham would have given us a greater international footprint. We continue to believe that a tie-up between Choice and Wyndham would present a significant opportunity for us. numerous financial and strategic advantages convincing in the long term, but now is not the right time. So we are sticking to our line, which has enabled us to achieve adjusted EBITDA growth of around 13 % in 2023, before probably further growth of 10 % this year. One thing is certain: our strategy is solid.
