Choice Hotels Asia Pacific signs 15-year Master Franchise Agreement with Suba Group of Hotels

With this, Choice Hotels in India is transitioning from a direct franchise market to a master franchise model

Choice Hotels Asia Pacific has signed a 15-year Master Franchise Agreement with Suba Group of Hotels in India. With effect from July 1, 2022, Choice Hotels in India is transitioning from a direct franchise market to a master franchise model. Under this arrangement, Suba Group of Hotels will assume responsibility as master franchise holder for the 58 Choice Hotels properties open and under development in India and hold the exclusive rights to develop the Clarion, Quality and Comfort brands in the market.

All franchised hotels will remain within the Choice Hotels network under the brand and will continue to benefit from the extensive marketing, distribution and franchisee performance services currently in place.

Choice Hotels Asia-Pacific CEO Trent Fraser said, “We’re incredibly excited to work with Suba Group of Hotels as we look to the next 15 years of portfolio growth for Choice Hotels in India. Suba has an almost 30-year history in the region and has built a strong local offering in the midscale and upscale markets. Bringing the Clarion, Quality and Comfort brands to their portfolio is a natural fit, and we are delighted to welcome them to the Choice Hotels global network as a master franchisee.”

“The master franchise model has worked exceptionally well for Choice Hotels in other markets throughout Asia-Pacific, and indeed around the world. We’re confident in the collective value proposition this represents for current and prospective franchisees and are looking forward to welcoming many more properties to the Choice Hotels network in India through our collective efforts with the Suba team,” Fraser added.

Suba Group of Hotels Managing Director Mansur Mehta said, “The master franchise agreement is in line with our vision of becoming the largest hotel chain in India. With this agreement, Suba Group of Hotels will add 2,200 keys to our existing portfolio of 2,900 keys, taking our position to 5,100 keys in 57 destinations across India. This acquisition will enable us to service customers looking for budget as well as star properties that meet business and leisure requirements.”

Mubeen Mehta, CEO of Suba Group of Hotels, said, “The Suba brand keeps up to the promise of responsible hospitality by offering the best-in-class service quality. Suba Group is the most reliable and profitable brand partner that extends full support to partnered hotels by way of branding, sales and project upkeep plans, thus, enabling revenue maximisation.”

Jaideep Dang, Managing Director of JLL Hotels and Hospitality Group South Asia, said, “We are delighted that JLL was able to assist Choice Hotels in identifying a strong partner in Suba Hotels Group to enhance the growth of their brands in India. This deal demonstrates an uptick in investor sentiment for the hospitality sector in India.”

JLL acted as an exclusive advisor to Choice Hotels Asia Pacific for this transaction.


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