Comfort Inn 2004 Annual Report Download - page 4

We enter the year with a strong brand portfolio that we are enhancing through the addition of a new
upscale all-suites brand, Cambria Suites, and through the re-imaging of our flagship brand, Comfort Inn.
After extensive consumer and developer research, we concluded that the time was right and the opportu-
nity was there to launch a successful new upscale brand. Developers were looking for this type of product to
satisfy growing demand. According to Smith Travel Research, in 2004 demand in the upscale segment
increased 5.7%, compared to a 1.3% increase in supply since 2003. In addition, the Travel Industry
Association of America has said that business travel is expected to increase 3.6% in 2005, with these travelers
being a primary target of upscale, select service brands.
Cambria Suites delivers the functionality, style and service that today’s upscale guest demands while offer-
ing lower development costs and ongoing fees than its competitors. The result? The potential for a superior
return on investment for the franchisee, backed by all of the horsepower that Choice brings to marketing its
franchised hotels and delivering room bookings efficiently and effectively on a global basis.
This new product offering, along with our established brands, benefits from the more than $50 million in
marketing support, $1.2 billion in annual gross room revenue from our central reservations system and 3.4
million members of our Choice Privileges frequency program. We believe Cambria Suites will quickly
become a strong brand in this attractive segment and a very compelling product for locations that thrive on
commercial, airport and destination leisure business.
At the same time, we are giving more than 1,400 Comfort Inn hotels a new look to compete more effec-
tively for the mid-scale traveler. We are working with Comfort Inn owners to implement new brand ameni-
ties and standards that will support the promise offered by the new image. By the latter part of this summer,
we anticipate that the overwhelming majority of Comfort Inn properties will have undergone re-imaging.
But our brand initiatives don’t stop with Comfort Inn. We continue to improve all of our brands by
ensuring that high quality hotels that fit each brand’s image enter our system. The brand services and ameni-
ties that we are adding are designed to cater to the needs of each brand’s hotel guests. By doing so, we can
bring greater definition and clarity to our brands, ensuring more consistent product and interior designs.
Finally, we are steadily improving our ability to better measure and improve hotel performance in collabora-
tion with our hotel owners.
Last year at this time, we told you about the mission, vision and passion that guided our business focus.
Since then, we have refined that focus to ensure that both Choice and its franchisees bring a new intensity to
promoting higher guest satisfaction:
Our Mission: Deliver a franchise success system of strong brands, exceptional services, vast consumer reach
and size, scale and distribution that delivers guests, satisfies guests and reduces costs for hotel owners.
Our Vision: To generate the highest return on investment of any hotel franchise.
Our Passion: Customer Profitability.
In terms of key goals for 2005, we have four main areas of focus:
1. Guest satisfaction
2. Building brand equity
3. System growth
4. Owner profitability
CHOICE HOTELS INTERNATIONAL