Comfort Inn 2014 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2014 Comfort Inn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

Table of Contents
South America. We conduct our operations in Brazil and certain other South American territories through a non-exclusive master franchise relationship
with Atlantica Holdings International, Ltd. ("Atlantica"). As of December 31, 2014, Atlantica had 63 open properties in its development territory. The
Company’s master franchise agreement with Atlantica grants rights to the Comfort, Quality, Sleep and Clarion brands, which rights are exclusive in Brazil
and non-exclusive in Atlantica's remaining territory. The agreement was executed in 2001 and pursuant to an amendment executed in September 2014, will
expire in December 2024.
Central America. We conduct our operations in certain Central American territories through an exclusive master franchise relationship with Real Hotels
and Resorts, Inc. ("Real"). As of December 31, 2014, Real had 14 open properties in its development territory which consists of Costa Rica, Dominican
Republic, El Salvador, Guatemala, Honduras and Panama. The Company’s master franchise agreement with Real grants rights to the Comfort, Quality, Sleep
and Clarion brands. The agreement was executed in 1994 for a term of twenty years. In May 2014, we renewed the master franchise agreement for an
additional 20-year term through May of 2034, with certain rights by both parties to terminate the contract early. Through a separate agreement signed in
2011, we have also granted Real limited non-exclusive rights to franchise Ascend Hotel Collection hotels in Costa Rica, Honduras and Panama.
Other International Relationships. We also have non-exclusive master development and area representative arrangements in place with local hotel
management and franchising companies doing business in China. At December 31, 2014, five properties were open and operating in China. In addition, the
Company through Choice BV, has direct franchise relationships with properties in Malaysia and Turkey. At December 31, 2014, one property was open and
operating in both Malaysia and Turkey.
16