Posted by ray@lcorn on June 12, 2006 at 11:04:59:
Natalie,
Comfort Suites is an excellent brand, the top performer in the Choice stable, but no franchise can change a market. CBD locations are typically business-oriented Monday-Thursday, and some cities have an active leisure market on weekends. I assume you’ve done enough market research to determine the switch will be beneficial.
However, please realize that it is impossible for me to really give you an intelligent opinion with no more information than has been given. If you are not an experienced hotel operater, then I strongly suggest you engage a professional feasibility firm to guide you.
With that as a qualifier, my guess would be that the proximity of the club will not have an adverse effect, particularly if the market is one in which CBD rooms are in short supply.
Franchised hotels typically receive around 20%-25% of business from the franchisor’s central reservation system (CRS), and significant percentages from travel agencies (through GDS providers), third party booking sites, and corporate accounts. Walk-ins are usually a much smaller percentage of business than would be the case with an interstate or airport location.
Your objective would be to retain the existing corporate business and build the leisure segment, and the franchise CRS, GDS and existing accounts are the primary tools to do that.
Couple of points to also consider. Be sure to check the Wingate franchise agreement for termination fees. If the hotel is not in default, and not in one of the periodic windows that the agreement can be cancelled without cause the cost of termination can be prohibitive. Be sure to read that contract closely. It is a long-term agreement with more requirements on the franchisee than the franchisor.
Assuming the Wingate contract can be cancelled without penalty, the next step is an inspection from a Choice Hotels Franchise Services Director (FSD), who will do a property survey of any needed improvements to qualify for conversion, and also be your liaison in processing the application. Franchisors typically treat the sale or re-branding of a hotel as an opportunity to upgrade the facility to meet the latest franchise requirements for the brand, and that can be expensive, especially for an older property.
Specific to the CS brand, if the rooms are not already configured as suites, and public space available for a full breakfast area, the conversions will have to be completed before the sign goes up. The FSD will also advise of any impact issues with existing Choice brands in the same market. That can take about a month after the franchisee application is approved, longer if there is an objection from an existing franchisee, so be sure to allow for the time needed.
ray
(Full disclosure: I am a principal in a company that owns a Comfort Inn as franchisee, and a former member of the executive committee of the Choice Hotels Owners Council, the franchisee association for Choice Hotels. I receive no compensation from CHI for any recommendations or comments made.)