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.
A GROUP OF at least 60 Choice Hotels International franchisees have filed a lawsuit leveling serious accusations against the company. They include an allegation that the company exercises racial bias against Indian American owners.
The group that filed the lawsuit Friday in the United States District Court for the Eastern District of Pennsylvania, formerly known as “Terminate Choice” and is now “Reform Choice,” formed after the onset of the COVID-19 pandemic to protest Choice’s treatment of franchisees during the resulting economic downturn. The suit, however, lists a series of complaints that predate the outbreak, and all of which Choice calls "unfounded."
Along with the allegation of racial prejudice, they include:
Violations of the Racketeer Influenced and Corrupt Organizations Act by colluding with the Choice Hotels Owners’ Council to defraud and take advantage of franchisees.
Forcing franchisees to buy from specific vendors from which the company receives kickbacks.
Charging fees that are not included in the original franchise agreement for services it either does not provide or provides at inferior quality.
Providing benefits to board members of CHOC to encourage then to “support Choice’s oppressive agenda.”
Blocking franchisees from exiting the system by imposing onerous liquidated damages provisions and excessive penalties on those trying to depart.
“This is an action to put an end to Choice’s abusive, fraudulent and unconscionable practices, which are designed with one purpose in mind—namely, to line the pockets of its shareholders at the expense of the rights of its franchisees, including the franchisees,” the lawsuit said. “Despite—or perhaps partially due to—the fact that franchisees inherently assume considerably more risk than Choice in the operation of each hotel franchise, Choice uses its superior bargaining power to coerce the franchisees into accepting onerous, unequal, and unconscionable terms in its franchise agreements. These onerous terms put immense financial stress on franchisees, threatening their economic viability.”
The argument for racial bias
Evidence supporting the accusation is mainly anecdotal, but it is prevalent among most of the plaintiffs in the case, most of whom are Indian American. Darshan Patel, owner of a Quality Inn in Dickinson, North Dakota, and founding member of Reform Choice, said the most common example is how Choice distributes franchises in its upper midscale brand Comfort Inn. Currently two-story hotels are not supposed to be allowed in the brand, but the rule is applied unevenly.
“There are numerous two-story Comfort Inns left across the U.S. including one in my hometown and they are all owned by white owners,” he said. “We all own three-story, four-star quality inns that are newer built and we're still not allowed to enter that system, they're still not removing those (two-story) Comfort Inns so let us have a spot.”
Patel had his own personal example stemming from his experience applying for a Comfort Inn franchise.
“I've applied two separate times [through] my management company,” he said. “My management company has 25 years of experience to operate in hotels. So, in that particular case, we did feel that there was racial discrimination where we were not allowed to enter the Comfort Inn system within that certain town.”
Patel said about 99 percent of the plaintiffs in the lawsuit said they feel as if they have been racially profiled since entering the Choice system.
No way out
The original complaint made by the group prior to filing the lawsuit was that Choice was not willing to waive enough of its franchise fees to help owners stay in business during the economic downturn. Patel said, as the lawsuit alleges, that many of those fees are not included in actual franchise agreements with the company. He said there are hidden fees, such as different types of marketing fees and education fees, that they never signed and agreed upon.
“When we're going through our contracts, the franchise fees we agreed upon in the contract and then what we're being charged is completely a whole different story,” he said. “We're being charged a lot more than we signed up to be charged.”
Most of the hoteliers in the group would like to exit the Choice system, Patel said, but cannot because the company would charge them hefty liquidated damages fees exceding $100,000.
“My Choice hotel currently is doing probably 10 percent occupancy and the revenue coming in is far less than the fees Choice is trying to charge every month is,” he said “It's gotten to the point where we are no longer profiting from our own property and we feel like this is just modern-day slavery.”
The number of owners willing to join the group and the lawsuit has been climbing since the suit was filed, Patel said.
“We do have a list of another 500 properties that would like to join, but everyone is in fear of retaliation from Choice so everyone's kind of standing still until the first batch of people go through,” he said.
New plaintiffs still have 14 days to join the lawsuit, Patel said, and there is a countdown clock for joining on the group's website.
Choice defends its position
In response to the lawsuit, Choice said it could not comment on pending litigation but pointed out that the plaintiffs in the suit represent only a small portion of the company’s 6,000 U.S. franchises.
“We look forward to addressing the unfounded allegations at the appropriate time,” the company statement said.
The statement also said the company wanted to point out that over its 80-year history it has supported its franchisees and maintains a voluntary franchisee retention rate of 98 percent.
“During the unprecedented challenges facing the hotel sector and across the broader economy over the last three months, Choice has been working closely with franchisees to help mitigate the impact of the current crisis on their businesses,” the statement said.
Another long-time Choice franchisee, Ash Sangani, owner of Giri Hotel Management in Quincy, Massachusetts, defended the company’s performance during the pandemic in the May issue of Asian Hospitality.
“I think this storm, nobody has ever seen,” he said. “I’ve spoken to a lot of veterans and people with 40 or 50 years in the industry who have never seen anything like this.”
Tim Shuy, Choice’s vice president of owner and portfolio strategy, said the company maintains strong relationships with most of its franchisees, though there are always going to be unhappy owners no matter what is done.
“We’re very engaged with our franchisees and they’re very engaged with us,” Shuy said.
Other brands have faced requests from franchisees to forgive fees during the crisis. In May, Wyndham Hotels & Resorts extended its waivers on fees to September.
The Trump administration says it is reviewing more than 55 million visa holders.
Reviews cover a wide range of visas for law enforcement and overstay violations.
The administration also suspended worker visas for foreign commercial truck drivers.
THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.
The State Department confirmed all visa holders are subject to ongoing review, which includes checking for overstays, criminal activity, threats to public safety or ties to terrorism. Should violations be found, visas may be revoked, and holders in the U.S. could face deportation, according to the Associated Press.
Officials said the reviews will include monitoring of visa holders’ social media accounts, law enforcement records and immigration files. New rules also require applicants to disable privacy settings on phones and apps during interviews. The department noted visa revocations since President Trump’s return to office have more than doubled compared to the previous year, including nearly four times as many student visas.
The administration also announced an immediate halt on issuing worker visas for foreign commercial truck drivers, with Secretary of State Marco Rubio citing road safety and competition concerns for U.S. truckers.
“The increasing number of foreign drivers operating large tractor-trailer trucks on U.S. roads is endangering American lives and undercutting the livelihoods of American truckers,” Rubio posted on X.
The Transportation Department linked the move to recent enforcement of English-language proficiency requirements for truckers, aimed at improving safety. The State Department later said it was pausing visa processing while it reviewed screening protocols.
Critics, including Edward Alden of the Council on Foreign Relations, warned the actions could have significant economic consequences.
“The goal here is not to target specific classes of workers, but to send the message to American employers that they are at risk if they are employing foreign workers,” Alden wrote, according to AP.
Data from the Department of Homeland Security shows there are 12.8 million green card holders and 3.6 million temporary visa holders in the United States. The 55 million figure under review includes many outside the U.S. with valid multiple-entry tourist visas.
Earlier this week, the State Department reported revoking more than 6,000 student visas for violations since Trump returned to office, including around 200 to 300 for terrorism-related issues.
The vast majority of foreign visitors require visas to enter the U.S., with exceptions granted to citizens of 40 countries under the Visa Waiver Program, primarily in Europe and Asia. Citizens of China, India, Russia and most of Africa remain subject to visa requirements.
A $250 Visa Integrity Fee in President Donald Trump’s Big Beautiful Bill drew criticism from groups that rely on seasonal workers from Latin America and Asia on J-1 and other visas.
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Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
The company promotes retroactive CPACE funding for commercial real estate development.
PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.
The 2,520-room Rio, now under the Destinations by Hyatt brand, was renovated in 2024 and comprises two hotel towers connected by a casino, restaurants and retail, Peachtree said in a statement.
“This transaction is a milestone for Peachtree Group and a testament to the ecosystem we have built over the past 18 years,” said Greg Friedman, Peachtree's managing principal and CEO. “Through our vertically integrated platform, deep expertise and disciplined approach, we have developed the infrastructure to be a leader in private credit. Our ability to deliver speed, creativity and certainty of execution positions us to provide capital solutions that create value for our investors and partners across market cycles.”
Atlanta-based Peachtree is led by Friedman; Jatin Desai as managing principal and CFO and Mitul Patel as principal.
The CPACE loan retroactively funded the renovations, allowing the owners to pay down their senior loan, the statement said. The property improvement plan included exterior work, upgrades to the central heating and cooling plant, electrical infrastructure improvements and convention center renovations.
Jared Schlosser, Peachtree’s head of originations and CPACE, said the deal marks an inflection point, with major financial institutions consenting to its use for the benefit of the capital stack.
“By closing quickly on a marquee hospitality asset, we were able to strengthen the position of both the owner and its lenders,” he said.
The CPACE market has surpassed $10 billion in U.S. originations in just over a decade, according to the C-PACE Alliance, with growth expected as more institutional owners and lenders adopt it.
“We see significant opportunity for retroactive CPACE and its use in funding new commercial real estate development,” Schlosser said. “It is an alternative to more expensive forms of capital.”
In June, Peachtree named Schlosser head of originations for all real estate and hotel lending and leader of its CPACE program. Peachtree recently launched a $250 million fund to invest in hotel and commercial real estate assets mispriced by capital market illiquidity.
Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
The U.S. leads with 6,280 projects; Dallas tops cities with 199.
Nearly 2,900 hotels are expected to open worldwide by the end of 2025.
THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.
The U.S. leads with 6,280 projects and 737,036 rooms, 40 percent of the global total. Dallas leads cities with 199 projects and 24,497 rooms, the highest on record.
LE’s Q2 2025 Hotel Construction Pipeline Trend Report showed 6,257 projects with 1,086,245 rooms under construction worldwide, unchanged in project count and down 3 percent in rooms from last year. Projects scheduled to start in the next 12 months totaled 3,870 with 551,188 rooms, down 3 percent in projects but up 1 percent in rooms. Early planning reached 5,744 projects and 798,792 rooms, up 10 percent in projects and 9 percent in rooms year-over-year.
Upper midscale and upscale hotels accounted for 52 percent of the global pipeline, LE said. Upper midscale stood at 4,463 projects and 567,396 rooms, while upscale reached 3,852 projects and 655,674 rooms. Upper upscale totaled 1,807 projects and 385,396 rooms, and luxury totaled 1,267 projects and 245,665 rooms, up 11 percent year-over-year.
In the first half of 2025, 970 hotels with 138,168 rooms opened worldwide. Another 1,884 hotels with 280,079 rooms are scheduled to open before year-end, for a 2025 total of 2,854 hotels and 418,247 rooms. LE projects 2,531 hotels with 382,942 rooms to open in 2026 and 2,554 hotels with 382,282 rooms to open globally in 2027, the first time a forecast has been issued for that year.
HAMA is accepting submissions for its 20th annual student case competition.
The cases reflect a scenario HAMA members faced as owner representatives.
Teams must submit a financial analysis, solution and executive summary.
THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.
Student teams must prepare a financial analysis, a recommended solution and an executive summary for board review, HAMA said in a statement.
“Each year, the education committee looks forward to the solutions that the next generation of hotel asset managers bring, applying their own experiences to issues in ways that reveal new directions,” said Adam Tegge, HAMA Education Committee chair. “This competition demonstrates that the future of hotel asset management is in good hands.”
The two winning teams will each receive a $5,000 prize and an invitation to the spring 2026 HAMA conference in Washington, D.C. HAMA will cover travel and lodging.
Twenty industry executives on the HAMA education committee will evaluate submissions based on presentation quality, the statement said. HAMA mentors volunteer from September through November to assist teams seeking feedback and additional information. Schools will select finalists by Jan. 15, with graduate and undergraduate teams reviewed separately.
The competition has addressed topics in operating and owning hospitality assets and HAMA consulted university professors to update the format for situations students may encounter after graduation, the statement said.
This year’s participants include University of Denver, University of Texas Rio Grande Valley, Boston University, Florida International University, Michigan State University, Columbia University, Morgan State University, Howard University, New York University and Penn State University.
Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.
STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.
It has an outdoor pool and more than 26,000 square feet of meeting space, Stonebridge said in a statement. The downtown Dallas property is near Main Street Garden Park, the Arts District, the Kay Bailey Hutchison Convention Center, Deep Ellum, Klyde Warren Park, and the Dallas World Aquarium.
“The Statler is an extraordinary asset with a storied history in Dallas, and we are thrilled to welcome it to our managed portfolio,” said Rob Smith, Stonebridge’s president and CEO. “Its blend of modern hospitality with timeless character makes it a natural fit within our lifestyle collection. We look forward to honoring the property’s legacy while enhancing performance and delivering an elevated guest experience.”
Stonebridge, based in Denver, is a privately held hotel management company founded by Chairman Navin Dimond and led by Smith. The company recently added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.