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 senior 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.
Noble broke ground on StudioRes Mobile Alabama at McGowin Park.
The 10th StudioRes expands Noble’s long-term accommodations platform.
Noble recently acquired 16 WoodSpring Suites properties through two portfolio transactions.
NOBLE INVESTMENT GROUP broke ground on StudioRes Mobile Alabama at McGowin Park, a retail center in Mobile, Alabama. It is Noble’s 10th property under Marriott International’s extended stay StudioRes brand.
“Noble is institutionalizing one of the most resilient and undersupplied segments at the intersection of hospitality, mobility and how people stay,” said Shah. “We are scaling a branded platform to capture secular demand that creates stable cash flow and long-term value.”
In May, Noble acquired 16 WoodSpring Suites properties through two portfolio transactions, expanding its platform in branded long-term accommodations.
Noah Silverman, Marriott International’s global development officer, U.S. & Canada, said breaking ground on the 10th StudioRes with Noble reflects the brand’s growth and the companies’ three-decade partnership.
“With both companies’ expertise in long-term accommodations, Marriott’s distribution channels, and the power of our nearly 248 million Marriott Bonvoy members, we are confident StudioRes is uniquely positioned to generate customer demand at scale, drive performance and sustain long-term growth,” he said.
Meanwhile, Marriott has more than 50 signed StudioRes projects, about half under construction, the statement said. The first StudioRes opened in Fort Myers, Florida.
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AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
The collaborations align academic programs with industry workforce needs.
It will provide data, faculty development, and student engagement opportunities.
THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.
Their efforts build on the foundation’s scholarships and link academics to workforce needs, AHLA said in a statement.
"We're not just funding education—we're investing in the alignment between academic learning and professional readiness," said Kevin Carey, AHLA Foundation president and CEO. "These partnerships give us the insights needed to support students and programs that effectively prepare graduates to enter the evolving hospitality industry."
ACPHA will provide annual reports on participating schools’ performance, enabling the Foundation to direct resources to programs with curricula aligned to industry needs, the Foundation said.
Thomas Kube, incoming ACPHA executive director, said the partnership shows academia and industry working together for hospitality students. The collaboration with ICHRIE includes program analysis, engagement through more than 40 Eta Sigma Delta Honor Society chapters and faculty development.
“Together, we are strengthening pathways to academic excellence, professional development and industry engagement,” said Donna Albano, chair of the ICHRIE Eta Sigma Delta Board of Governors.
Global hotel RevPAR is projected to grow 3 to 5 percent in 2025, JLL reports.
Hotel RevPAR rose 4 percent in 2024, with demand at 4.8 billion room nights.
London, New York and Tokyo are expected to lead investor interest in 2025.
GLOBAL HOTEL REVPAR is projected to grow 3 to 5 percent in 2025, with investment volume up 15 to 25 percent, driven by loan maturities, deferred capital spending and private equity fund expirations, according to JLL. Leisure travel is expected to decline as consumer savings tighten, while group, corporate and international travel increase, supporting RevPAR growth.
Major cities continue to attract strong demand and investor interest, particularly London, New York and Tokyo. APAC is likely to post the strongest growth, fueled by recovering Chinese travel, while urban markets remain poised for continued momentum.
Lifestyle hotels are emerging as the new “third place,” blending living, working and leisure. The trend is fueling expansion into branded residences and alternative accommodations. JLL said investors must weigh regional performance differences, asset types and lifestyle trends when evaluating opportunities.
Separately, a Hapi and Revinate survey found fragmented systems, inaccurate data and limited integration remain barriers for hotels seeking better data access to improve guest experience and revenue.
Fragmented systems, poor integration limit hotels’ data access, according to a survey.
Most hotel professionals use data daily but struggle to access it for revenue and operations.
AI and automation could provide dynamic pricing, personalization and efficiency.
FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.
“The Future of Hotel Data” report, published by hospitality data platform Hapi and direct booking platform Revinate, found that 40 percent of hoteliers cite disconnected systems as their biggest obstacle. Nearly one in five said poor data quality prevents personalization, limiting satisfaction, loyalty and upsell opportunities.
“Data is the foundation for every company, but most hotels still struggle to access and connect it effectively,” said Luis Segredo, Hapi’s cofounder and CEO. “This report shows there’s a clear path forward: integrate systems, improve data accuracy and embrace AI to unlock real-time insights. Hotels that can remove these technology barriers will operate more efficiently, drive loyalty, boost revenue and ultimately gain a competitive edge in a tight market.”
AI and automation could transform hospitality through dynamic pricing, real-time personalization and operational efficiency, but require standardized, integrated and reliable data to succeed, the report said.
Around 19 percent of respondents cited communication delays as a major issue, while 18 percent pointed to ineffective marketing, the survey found. About 10 percent reported challenges with enterprise initiatives and 15 percent said they struggled to understand guest needs. Nearly 46 percent identified CRM and loyalty systems as the top priority for data quality improvements, followed by sales and upselling at 17 percent, operations at 10 percent and customer service at 7 percent.
Meanwhile, hotels see opportunities in stronger CRM and loyalty systems, integrated platforms and AI, the report said. Priorities include improving data quality for personalized engagement, using integrated systems for real-time insights, applying AI for offers, marketing and service and leveraging dynamic pricing and automation to boost efficiency, conversion and profitability.
“Clean, connected data is the key to truly understanding the needs of guests, driving amazing marketing campaigns and delivering direct booking revenue,” said Bryson Koehler, Revinate's CEO. “Looking ahead, hotels that transform fragmented data into connected data systems will be able to leverage guest intelligence data and gain a significant advantage. With the right technology, they can personalize every interaction, shift share to direct channels and drive profitability in ways that weren’t possible before. The future belongs to hotels that harness their data to operate smarter, delight guests and grow revenue.”
In June, The State of Distribution 2025 reported a widening gap between technology potential and operational readiness, with many hotel teams still early in using AI and developing training, systems, and workflows.
Hyatt partners with Way to unify guest experiences on one platform.
Members can earn and redeem points on experiences booked through Hyatt websites.
Way’s technology supports translation, payments and data insights for Hyatt.
HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.
World of Hyatt members can earn and redeem points on experiences booked through Hyatt websites, including wellness programs, cultural activities, ticketed events and local collaborations, the companies said in a statement. Members can also access FIND Experiences, which includes activities and auctions where points can be used to bid on events.
"In our search for an on-brand platform to power experiences and tap into ancillary revenue opportunities, Way's collaboration has been a true unlock for us," said Arlie Sisson, Hyatt’s senior vice president and global head of digital. "After a thorough evaluation of potential solutions, Hyatt chose Way to power the next chapter of our digital strategy by streamlining operations, elevating brand differentiation, enhancing personalization and, most importantly, delivering care at every touchpoint in the guest journey."
The Way initiative spans Hyatt’s portfolio, covering cabana rentals, in-room amenities and partnerships with local providers, the statement said. Way’s technology supports real-time translation, more than 100 currencies, multiple payment methods and data insights to help Hyatt manage operations globally.
"Hyatt set a high bar and Way is proud to bring their vision to life," said Michael Stocker, Way’s co-founder and CEO.
"The platform supports enterprise needs while preserving the guest experience."