Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently assistant editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers.
Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
ON THE CUSP of his transition to chairman of AAHOA, Bharat Patel was ready to take the reigns of the association at a time when it was embroiled in a conflict with several large hotel companies over its support for franchise reform. Bharat sat down with his predecessor Nishant “Neal” Patel to talk with Asian Hospitality for our Leadership Series to discuss the situation and his plans for the future of the association.
Those plans include maintaining AAHOA’s focus on being a “member centric” organization by advocating for member’s needs from government officials and offering more educational services. The interview, given during the Hunter Hotel Conference in March, was weeks before the 2023 AAHOA Conference and Trade Show in Los Angeles, and both men discussed the record turnout for that conference among other things.
Meanwhile, Neal Patel looked back on his year as chairman and his accomplishments. Both men said AAHOA’s primary purpose is serving the needs of its members.
Much achieved
Neal Patel said much was accomplished under his administration.
“This year has been a great one because our goal has been how can we make this association member centric,” Neal said. “We want to make sure that we're financially stable at the same time.”
Some of those completed goals include AAHOA’s HER Ownership women’s initiative. AAHOA also launched a new website in December, the next phase of which will include an expanded resource library. On a personal level, Neal said he also learned much from his time as chairman.
“The three things that I'll take back is number one, communication, effective communication. Number two is transparency, and number three is strong partnerships,” Neal said. “Those are the three things that we practiced in AAHOA as the association will continue to be member centric. We want to be the resource that we intend to be for our membership and as long as we continue to follow those three guidelines, that is how we succeed in AAHOA and in my personal life as well.”
AAHOACON23 sets records despite dispute
Even at the time of Bharat and Neal’s interview for the Leadership Series in March, AAHOACON23 had set records for registration set by the 2019 conference. Neal suggested one reason for that turnout.
AAHOA Chairman Bharat Patel on stage at AAHOACON23.
“Number one, when you talk about our association, there's a sense of community. I think that's what this association is about,” he said. “We're always there to help each other out. We're going through a challenging time. Members are showing support today with the spike showing up to this convention.”
Part of that challenge was the conflict between AAHOA and several companies, such as Marriott International and Choice Hotels International. In January, Marriott announced it would withdraw its support for AAHOA and the conference in response to the association’s 12 Points of Fair Franchising and its support for New Jersey Assembly Bill 1958, which would make changes to the state’s Franchise Practices Act that could benefit franchisees.
Choice followed suit in February. Along with those two companies, however, several others that ordinarily attend AAHOACONs did not have booths at the show, including IHG Hotels & Resorts and Hilton. Other companies, including G6 Hospitality, BWH Hotel Group and Red Roof, have publicly endorsed the 12 Points.
One month before the show, Bharat said both sides were still in negotiations.
“I want to make sure everybody understands what we value our brand partners,” Bharat said. “I'd like to highlight that even today we've had dialogue with trading partners, brand partners are going to choose what they want to do. But I want to make sure you understand we are a member centric association. We're working hard on behalf of the membership, to make sure that we represent their interests.”
The fight for fair franchising is worth the risk, Neal said.
“I think fairness in franchising is an important topic for AAHOA, an important issue for our membership group,” Neal said. “When it comes to any franchise relations, I'm personally a franchisee. It should be a mutually beneficial relationship, because we need our brand partners as much as they need us. And we're the only owners association that represents solely to hotel owners needs and we look out for the bottom line.“
Neal also said achieving the type of reform AAHOA wants is a process that requires work on both sides.
“We read the entire bill and there were some things that we disagreed with as an association,” Neil said. “Therefore, we proposed amendments, but there are the four key principles that we believe that will impact every single hotelier and because of this, some friends want to disengage or pause. We can't control what our brand partners are doing. But do we want them at our convention, absolutely, because we feel that that's a resource to our members.”
Pat Pacious, president and CEO of Choice Hotels, said the conflict between AAHOA and his company is not about fair franchising and that dialogue between the two parties must continue.
“This is not about fair franchising. Choice Hotels is probably the most franchisee friendly company, we always have been,” Pacious said. “We have had a long-standing relationship with AAHOA and the way we all move forward is through dialogue. And we are always open to dialogue, we’ve always made that the number one thing that we focus on. A lot of our owners are very much aware of what we’re doing and support what we’re doing, and the dialogue is where we’re going to hopefully get back to a place where AAHOA and Choice are shoulder to shoulder again on the major issues that are facing our industry.”
The importance of education
Bharat joined AAHOA in 2008 because other members of his family, including his brother, were members. It’s one of his father’s lessons that provides him guidance on how to approach his new leadership role.
“When I was growing up, my dad would say if you're going to succeed in life and do anything, first thing you got to do is get educated,” Bharat said. “Work hard, stay out of politics, those are the three things I was really taught.”
How that will translate into his chairmanship, Bharat said, will be a revival of AAHOA services. That includes counseling on legal services, loans, insurance and more.
“You have things that are not just cost cutting measures, but how to protect your asset,” Bharat said. “It's not just about making money and saving money.”
Advocacy with government agencies on all levels will be another focus of his administration, Bharat said.
From left, AAHOA Chairman Bharat Patel, past Chairman Nishant “Neal” Patel, AAHOA Vice Chairman Miraj Patel and Treasurer Kamalesh “KP” Patel at the 2023 AAHOA Conference and Trade Show in Los Angeles.
“I think it's really important to be with elected officials. We have to inform them, we have to educate them, then we have to advocate for our members,” Bharat said. “Today or tomorrow, whether it's federal government, state government, local municipalities, they're always going to make rules that impact our business. Some can impact in a positive way, but more than likely that could impact them negatively, so it's really important to have our presence known there.”
A word of advice
Finally, Neal parted with some words of wisdom and encouragement for the new chairman.
“When the year started, obviously, one year I’m the chair, but I had to rely upon Bharat’s leadership and his help, and the amount of help that he gave me a tremendous because I did not expect a lot of things to go the way they're going,” Neal said. “I think it's because of the team that we have right now within the AAHOA officers that continue to support and continue to guide us and we will have discussions on what to do next. I'm fully confident in his leadership skills and I'm looking forward to being a full member and also serve on his board.”
Choice Hotels International reported Q2 net income of $81.7 million.
Domestic RevPAR fell 2.9 percent due to macroeconomic conditions.
Extended-stay portfolio rose 10.5 percent YoY, with a domestic pipeline of 43,000 rooms.
CHOICE HOTELS INTERNATIONAL reported second-quarter net income of $81.7 million, down from $87.1 million a year earlier. Its forecast for the year remained positive, but was downgraded some to account for changes in macroeconomic conditions.
The company’s global pipeline exceeded 93,000 rooms, including nearly 77,000 in the U.S. Its global system size grew 2.1 percent, including 3 percent growth in the upscale, extended-stay and midscale segments, Choice said in a statement.
“Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy,” said Patrick Pacious, president and CEO. “We are especially pleased with our strong international performance, where we have achieved significant growth and accelerated global expansion through a recent strategic acquisition, the signing of key partnerships, and entry into new markets. With more diversified growth avenues, enhanced product quality and value proposition driving stronger customer engagement and a leading position in the cycle-resilient extended-stay segment, we remain well-positioned to deliver long-term returns for all our stakeholders.”
Domestic RevPAR declined 2.9 percent, reflecting macroeconomic conditions and a difficult comparison with 2024 due to the timing of Easter and eclipse-related travel, the statement said. Excluding those effects, RevPAR fell approximately 1.6 percent. Meanwhile, the domestic extended-stay portfolio outperformed the broader lodging industry by 40 basis points in RevPAR, while the economy transient portfolio exceeded its chain scale by 320 basis points.
Adjusted EBITDA rose 2 percent to $165 million, or $167 million excluding a $2 million operating guarantee related to the Radisson Hotels Americas acquisition. Adjusted diluted EPS increased 4 percent to $1.92, the statement said.
Expansion and development
The domestic extended-stay portfolio grew 10.5 percent year over year, with a pipeline of nearly 43,000 rooms as of June 30, Choice said. The combined domestic upscale, extended-stay and midscale portfolio grew 2.3 percent. WoodSpring Suites expanded 9.7 percent to nearly 33,000 rooms and ranked first in guest satisfaction among economy extended-stay brands in the J.D. Power 2025 study. The domestic economy transient pipeline increased 8 percent to more than 1,700 rooms.
Choice acquired the remaining 50 percent interest in Choice Hotels Canada for approximately $112 million in July, funded through cash and credit. The deal expanded its Canadian brand portfolio from eight to 22 and added 327 properties and more than 26,000 rooms. The business is expected to contribute approximately $18 million in EBITDA in 2025.
International activity included a renewed master franchise agreement with Atlantica Hospitality International in Brazil for more than 10,000 rooms; a direct franchise deal with Zenitude Hotel-Residences in France, which nearly tripled room count and two agreements with SSAW Hotels & Resorts in China. These include a 9,500-room distribution deal for 2025 and a master franchise agreement projected to add 10,000 rooms over five years.
Global net rooms for upscale brands increased 14.7 percent year over year, the statement said. The pipeline for these brands rose 7 percent since March 31 to nearly 29,000 rooms.
2025 outlook
Choice revised its RevPAR outlook to reflect more moderate domestic expectations due to macroeconomic conditions, the statement said. The adjusted EBITDA forecast includes a $6 million contribution from the Choice Hotels Canada acquisition for the remainder of 2025. It also reflects the $2 million Radisson-related operating guarantee payment incurred in the second quarter.
Net income guidance was lowered to a range of $261 million to $276 million, down from $275 million to $290 million. Adjusted net income remains at $324 million to $339 million.
Domestic RevPAR growth was revised to between negative 3 percent and flat, compared to the earlier range of negative 1 percent to positive 1 percent. The global net system rooms growth projection remains at approximately 1 percent.
In May, Choice reported 2.3 percent year-over-year growth in domestic RevPAR for the first quarter.
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G6 Hospitality and Galaxy Hotels Group are expanding Motel 6 and Studio 6 in the U.S.
Galaxy said G6 brands outperform others in guest satisfaction and value.
One Galaxy hotel generates $8–10M annually; the full G6 portfolio is expected to reach $50M.
G6 HOSPITALITY AND Galaxy Hotels Group are now working to expand the Motel 6 and Studio 6 footprint in the U.S. About 10 Galaxy-managed hotels, totaling more than 1,300 rooms, will operate under the G6 brands, with more to follow.
G6 brands consistently outperform others in guest satisfaction and value, said Galaxy, which rejoined the G6 network after a short break.
“This partnership marks a new chapter in our mission to deliver modern, value-driven hospitality, as we now proudly rejoin G6 Hospitality," said Carlos Cuevas, Galaxy Hotels' COO. "Having previously moved from Choice Group/Park Inn by Radisson, we’ve closely compared the performance of various franchises. Our experience and data show that G6 brands consistently outperform others in guest satisfaction and value. This is why we’re back."
Recent additions include Studio 6 Suites Las Vegas with 308 rooms, Motel 6 Las Vegas – I-15 Stadium with 139 rooms and Motel 6 Las Vegas – Boulder Highway with 160 rooms, the companies said. Studio 6 Suites Las Vegas on the Strip, with more than 300 rooms, will be one of the largest Studio 6 hotels in the U.S., while Motel 6 Las Vegas is also near the Strip and Allegiant Stadium. The portfolio also includes Motel 6 hotels in Modesto, San Jose and Santa Rosa, California and Lakewood, Fort Collins, Thornton and Colorado Springs, Colorado.
Texas-based Galaxy Hotels Group, founded in 1999 and led by CEO Jagmohan “Jag” Dhillon, operates more than 41 hotels in the U.S. One Galaxy hotel in the G6 network generates $8 to 10 million in annual revenue. The full G6 portfolio is expected to reach about $50 million.
OYO CEO Ritesh Agarwal is chair of G6 Hospitality and Sonal Sinha is its CEO. OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans 150 more by year-end.
Marriott International ended Q2 with a record pipeline of about 3,900 properties and more than 590,000 rooms.
Global RevPAR rose 1.5 percent, including a 5.3 percent gain in international markets.
Net income slipped 1 percent to $763 million; 17,300 net rooms were added.
MARRIOTT INTERNATIONAL’S GROWTH continued in the second quarter, according to the company’s recent earnings report. Along with its active pipeline, the company saw rising revenue and launched a new brand.
Marriott’s global development pipeline stood at approximately 3,900 properties with more than 590,000 rooms at the end of the second quarter. The company added about 17,300 net rooms, signed nearly 32,000 and reported more than 70 percent of signings and 8,500 of added rooms in international markets.
“Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty,” said Anthony Capuano, Marriott president and CEO. “Global RevPAR increased 1.5 percent in the second quarter, primarily driven by the leisure segment. International RevPAR rose more than 5 percent, with strong growth in APEC and EMEA. In the U.S. and Canada, RevPAR was flat year over year with continued strength in the luxury segment offset by a decline in select-service demand, largely reflecting reduced government travel and weaker business transient demand. Adjusting for the Easter holiday shift, U.S. and Canada RevPAR increased by nearly 1 percent.”
Base management and franchise fees rose nearly 5 percent to $1.2 billion, driven by RevPAR growth, room additions and co-branded credit card fees, the statement said. Reported operating income increased to $1.236 billion from $1.195 billion, while net income declined 1 percent to $763 million. Reported diluted earnings per share were $2.78, up from $2.69.
Adjusted operating income rose to $1.186 billion from $1.120 billion, Marriott said. Adjusted net income increased to $728 million from $716 million and adjusted diluted EPS rose to $2.65 from $2.50. Adjusted EBITDA grew 7 percent to $1.415 billion.
Pipeline and brands
Marriott added about 17,300 net rooms in the quarter, including over 8,500 internationally, bringing its global system to more than 9,600 properties and around 1.736 million rooms. It signed nearly 32,000 rooms, over 70 percent in international markets. Conversions made up about 30 percent of signings and openings in the first half. Full-year net rooms growth is expected to approach 5 percent.
Marriott Bonvoy membership also reached nearly 248 million by the end of June, the statement said.
“Development activity remained robust,” Capuano said. “We signed nearly 32,000 rooms, more than 70 percent of which were in international markets, and our quarter-end pipeline stood at a record of more than 590,000 rooms. Conversions continued to be a key driver of growth, representing approximately 30 percent of our room signings and openings in the first half of this year. We still expect full year net rooms growth to approach 5 percent this year.”
The development pipeline included 3,858 properties and more than 590,000 rooms, with 234 properties and over 37,000 rooms approved but not yet under contract, the statement said. The pipeline included 1,447 properties with more than 238,000 rooms under construction or conversion. Over half of the pipeline rooms were outside the U.S. and Canada.
The company launched Series by Marriott, a regional collection brand for midscale and upscale segments, and announced its first agreement to affiliate India’s Fern portfolio. Marriott also completed the acquisition of citizenM. However, the citizenM and Series by Marriott additions were not included in the pipeline total.
Capuano said both brands are expected to support international expansion.
2025 outlook
Marriott’s outlook assumes no major shifts in macroeconomic conditions. The company expects RevPAR to be flat to up 1 percent in the third quarter of 2025 and grow 1.5 to 2.5 percent for the full year. Net rooms growth is projected to approach 5 percent in 2025.
Gross fee revenues are expected to total $1.310 billion to $1.325 billion in the third quarter and $5.365 billion to $5.420 billion for the year. Adjusted EBITDA is forecast at $1.288 billion to $1.318 billion for the third quarter and $5.310 billion to $5.395 billion for the full year.
OYO added more than 150 U.S. hotels in early 2025 and plans 150 more by year-end.
Ten additions have more than 100 rooms, reflecting a focus on high-inventory properties.
It is targeting urban and suburban markets in the Sun Belt and Great Lakes regions.
HOSPITALITY TECHNOLOGY COMPANY OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans to add 150 more by year-end. The additions span Texas, Virginia, Georgia, Mississippi, California, Michigan and Illinois.
The company is focusing on high-inventory properties and has added 10 with more than 100 rooms, OYO U.S. said in a statement.
“2025 is shaping up to be a busy year for all of us at OYO,” said Nikhil Heda, head of development, OYO U.S. “We’re helping hotel owners drive revenue and improve operations through our technology. Our growing portfolio gives travelers more options, and momentum on our direct channels shows OYO is becoming a trusted brand for new and returning guests.”
Recent additions include the 400-room Palette Sunset Waves Resort in Myrtle Beach, the 130-room Capital O Kings Inn in Memphis, the 130-room Travellers Inn by OYO in Douglas, Georgia, and the 140-room Jackson Hotel and Convention Center in Jackson, Tennessee. All were previously independent hotels.
The company is exploring urban and suburban markets across the Sun Belt and Great Lakes regions, targeting areas with high demand and growth potential, the statement said.
OYO CEO Ritesh Agarwal, who also chairs G6 Hospitality, the parent of Motel 6 and Studio 6, recently launched a contest to rename Oravel Stays, offering a $3,500 prize.
Choice launched two campaigns to boost bookings across its four extended-stay brands.
Based on guest feedback, the campaigns focus on efficiency, cleanliness, value and flexibility.
They will run through 2026 across social media, Connected TV, digital display and online video.
CHOICE HOTELS INTERNATIONAL launched two marketing campaigns to increase brand awareness and bookings across its four extended-stay brands. The "Stay in Your Rhythm" campaign promotes all four brands by showing how guests can maintain daily routines, while "The WoodSpring Way" highlights the service WoodSpring Suites staff provide.
The company has more than 550 extended-stay locations open, 51 under construction and more than 350 in the pipeline under Everhome Suites, MainStay Suites, Suburban Studios and WoodSpring Suites, Choice said in a statement.
"As leaders in the extended stay segment, Choice Hotels has long understood that this category is unlike any other in the hospitality industry, defined by distinct guest expectations that we continuously strive to exceed," said Noha Abdalla, Choice’s chief marketing officer. "These first-of-their-kind campaigns reflect our deep understanding of why people stay longer — from work assignments and relocations to life transitions and personal journeys. No matter the reason, we know our guests aren't looking to escape their routines; they're looking to maintain them. That's why we take pride in our unique position to offer what matters most: consistency, comfort and connection."
Both campaigns are based on research and guest feedback showing travelers prioritize efficiency, cleanliness, value and flexibility, the statement said. They will run through the rest of the year and into 2026 across paid social media, Connected TV, digital display and online video.
The "Stay in Your Rhythm" campaign shows how Choice's extended-stay brands support routines with in-room kitchens, laundry, fitness centers and pet-friendly options, Choice said. It focuses on daily habits like making coffee, cooking, walking the dog, or exercising.
"The WoodSpring Way" highlights how property teams support guests by providing home-like conveniences, the company said. General managers in Chicago, Denver, Atlanta and Orlando are featured for creating a consistent guest experience and welcoming all guests, including pets.
"We've designed our extended stay properties to ensure we provide guests with everything they need when circumstances take them away from home for weeks at a time," said Matt McElhare, Choice's vice president for extended stay brands. "Through the launch of our campaigns, we aim to educate the growing population of extended stay travelers on how our brands offer the best value in the industry, while also highlighting the culture of our flagship brand, WoodSpring Suites, which has consistently set the standard for guest satisfaction in the segment. We're especially thankful to our owners and management company teams who help build and sustain this culture on property, consistently delivering a great guest experience."