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.
Marriott launches Outdoor Collection and Bonvoy Outdoors platform.
First two brands are Postcard Cabins and Trailborn Hotels.
Platform features 450+ hotels, 50,000 homes and activities.
MARRIOTT INTERNATIONAL RECENTLY launched the brand “Outdoor Collection by Marriott Bonvoy” and introduced “Marriott Bonvoy Outdoors,” a digital platform that lets travelers plan trips by destination or activity. The first two brands in the Outdoor Collection are Postcard Cabins and Trailborn Hotels.
Outdoor Collection offers stays such as cabins near national parks and hotels on cliffs, providing access to nature along with basic guest needs, including beds, running water and restrooms, Marriott said in a statement.
The Marriott Bonvoy Outdoors platform includes 450 hotels, 50,000 homes and villas, and tours and activities, the statement said. Postcard Cabins has 1,200 cabins across 29 U.S. locations within two hours of major cities and Trailborn Hotels offers properties in the Blue Ridge Mountains, the Grand Canyon, and Wrightsville Beach, North Carolina.
“We built Marriott Bonvoy Outdoors to help people, whether that’s cresting a mountain trail, catching the perfect wave, or simply finding quiet under the stars,” said Peggy Roe, Marriott's executive vice president and chief customer officer. “Travel is at its best when it speaks to who we are and what we love. It’s about reconnecting with yourself and the people you love in the places that inspire you most. With the new Outdoor Collection by Marriott Bonvoy, our curated Marriott Bonvoy Moments and activations like the Drop Pin Challenge with Dylan Efron, we’re not just offering places to stay, we’re opening doors to experiences that inspire, connect and stay with you forever.”
Marriott Bonvoy partnered with Dylan Efron on the Drop Pin Challenge, a treasure hunt across 20 U.S. and Canadian locations with 10 million points at stake. Travelers can visit marriottbonvoyoutdoors.com for rules and locations and the first 50 eligible participants to scan each pin earn 10,000 points. The platform is also partnering with Outside Interactive to offer Marriott Bonvoy Moments that connect guests with nature and activities.
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Peachtree adds six hotels to third-party platform.
Five are owned by La Posada Group, one by Decatur Properties.
Third-party portfolio totals 42 hotels.
PEACHTREE GROUP’S HOSPITALITY management division added six hotels to its third-party management platform. Five are owned by La Posada Group LLC and one by Decatur Properties Holdings.
La Posada’s hotels include Fairfield Inn Evansville East in Evansville, Indiana; Fairfield Inn Las Cruces and TownePlace Suites Las Cruces in Las Cruces, New Mexico; and SpringHill Suites Lawrence Downtown and TownePlace Suites Kansas City Overland Park in Kansas, Peachtree said in a statement.
It also assumed management of Decatur Properties’ Hampton Inn in Monahans, Texas.
“Our third-party management business is experiencing growth and these six hotels demonstrate the trust owners are placing in our team,” said Vickie Callahan, president of Peachtree’s hospitality management division. “We have experience managing hotels and managing operations for partners who have entrusted us with their assets. We are committed to protecting asset value, driving results for partners and delivering a strong guest experience.”
The division manages hotels across brands and markets nationwide, the statement said. It operates 115 hotels across 29 brands with 14,212 rooms in 27 states and Washington, D.C. The additions bring its total third-party operations to 42 hotels.
Callahan said the team uses scale, operating systems and brand relationships to optimize revenue, control costs and improve guest satisfaction.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO and Mitul Patel, principal.
AHLA Foundation distributed $710,000 in scholarships to 246 students.
Nearly 90 percent of recipients come from underrepresented communities.
The foundation funds students pursuing education and careers in the lodging sector.
AHLA FOUNDATION DISTRIBUTED $710,000 in academic scholarships to 246 students at 64 schools nationwide for the 2025–2026 academic year. Nearly 90 percent of recipients are from underrepresented communities, reflecting the foundation’s focus on expanding access to hospitality careers.
The foundation awards academic scholarships annually to students in hospitality management and related programs, it said in a statement.
“Our scholarship program is helping ensure the next generation of talent has the resources to pursue careers in the hospitality industry,” said Kevin Carey, AHLA Foundation's president and CEO. “We’ve invested millions of dollars over the last several decades to recruit and support future leaders who will strengthen our industry.”
It provides funding to help students pursue education and careers in the lodging sector, the statement said. Award decisions are based on applicants’ academic performance, extracurricular involvement, recommendations and financial need.
In September, AHLA Foundation, the International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration announced plans to expand education opportunities for hospitality students. The alliance aim to provide data, faculty development and student engagement opportunities.
The U.S. government shut down at midnight after Congress failed to agree on funding.
About 750,000 federal employees will be furloughed daily, costing $400 million.
Key immigration and labor programs are halted.
THE FEDERAL GOVERNMENT shut down at midnight after Republicans and Democrats failed to agree on funding. Disputes over healthcare subsidies and spending priorities left both sides unwilling to accept responsibility.
The shutdown could cost America’s travel economy $1 billion a week, the U.S. Travel Association said previously. It will disrupt federal agencies, including the Transportation Security Administration and hurt the travel economy, USTA CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
“A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion each week—and affecting millions of travelers and businesses while straining an already overextended federal travel workforce,” Freeman said. “While Congress recently provided a $12.5 billion down payment to modernize our nation’s air travel system and improve safety and efficiency, this modernization will stop in the event of a shutdown.”
USTA said that halting air traffic controller hiring and training would worsen a nationwide shortage of more than 2,800 controllers and further strain the air travel system.
About 750,000 federal workers are expected to be furloughed each day at a cost of about $400 million, according to the Congressional Budget Office. Essential services to protect life and property remain operational, CNN reported. The Department of Education said most of its staff will be furloughed, while the Department of Homeland Security will continue much of its work. Agencies released contingency plans before the deadline.
Immigration services are directly affected. Most U.S. Citizenship and Immigration Services operations continue because they are fee funded, but programs relying on appropriations—such as E-Verify, the Conrad 30 J-1 physician program and the special immigrant religious worker program—are suspended. Houston law firm Reddy Neumann Brown said employers must manually verify I-9 documents if E-Verify goes offline, though USCIS has historically extended compliance deadlines.
The Department of Labor will halt its Office of Foreign Labor Certification, freezing labor condition applications for H-1B visas, PERM applications and prevailing wage determinations, India’s Business Standard reported. Its FLAG system and related websites will also go offline. Immigration lawyers warn of ripple effects, since USCIS depends on DOL data. The Board of Alien Labor Certification Appeals and administrative law dockets will also pause.
Visa and passport services at U.S. consulates generally continue because they are fee funded. If revenue falls short at a post, services may be limited to emergencies and diplomatic needs.
Reuters reported that the disruption could delay the September jobs report, slow air travel, suspend scientific research, withhold pay from active-duty U.S. troops and disrupt other government operations. The funding standoff involves $1.7 trillion in discretionary agency spending—about one-quarter of the $7 trillion federal budget, according to Reuters. Most of the rest goes to health programs, retirement benefits and interest on the $37.5 trillion national debt.
According to The New York Times, unlike previous shutdowns, Trump is threatening long-term changes to the government if Democrats do not concede to demands, including firing workers and permanently cutting programs they support.
The U.S. led global travel and tourism in 2024 with $2.6 trillion in GDP, WTTC reported.
India retained ninth place with $249.3 billion in GDP.
The sector supported 357 million jobs in 2024, rising to 371 million in 2025.
THE U.S. LED global travel and tourism in 2024, contributing $2.6 trillion to GDP, mainly from domestic demand, according to the World Travel & Tourism Council. Europe accounted for five of the top 10 destinations, while India ranked 9th.
WTTC opened its 25th Global Summit in Rome with research showing investment reached $1 trillion in 2024, led by the U.S., China, Saudi Arabia and France.
“These results tell a story of strength and opportunity,” said Gloria Guevara, WTTC interim CEO. “The U.S. remains the world’s largest travel and tourism market, China is surging back, Europe is powering ahead, and destinations across the Middle East, Asia and Africa are delivering record growth. This year, we are forecasting that our sector will contribute a historic $2.1 trillion in 2025, surpassing the previous high of $1.9 trillion in 2019. As Italy hosts this year’s Global Summit, its role as a G7 leader showcases the importance of tourism in driving economies, creating jobs and shaping our shared future.”
The U.S. kept its top position, but international visitor spending is expected to fall by $12.5 billion in 2025, limiting growth to 0.7 percent. China, the second-largest market, contributed $1.64 trillion in 2024 and is forecast to grow 22.7 percent this year. Japan, the fifth-largest market, is expected to rise from $310.5 billion to nearly $325 billion.
Italy, which hosted the summit and is a G7 member, contributed $248.3 billion in 2024, driven by international visitors and the meetings and events sector. Germany, the third-largest market, contributed $525 billion. The UK generated $367 billion despite a fall in international visitor spending, while France and Spain added $289 billion and $270 billion. Europe’s growth was supported by both cultural and modern sectors.
India contributed $249.3 billion in 2024. In June, WTTC reported international visitors spent $36.09 billion in India in last year, up 9 percent from 2019.
Jobs on the rise
Travel and tourism supported 357 million jobs in 2024 and is expected to reach 371 million in 2025, increasing its share of global employment, the WTTC report found. By 2035, the sector is projected to support one in eight jobs worldwide, adding 91 million positions—most in Asia-Pacific—and accounting for one in three new jobs globally.
Uncertainties over trade tariffs and geopolitical tensions could limit sector growth in 2025, the report said. Travel and tourism’s GDP contribution is forecast to rise 6.7 percent, returning toward pre-pandemic averages but still outpacing the 2.5 percent growth projected for the global economy.
The sector is expected to contribute $11.7 trillion, or 10.3 percent of global GDP and add 14.4 million jobs, bringing total employment to 371 million, or 10.9 percent of global jobs. International visitor spending is projected to fully recover, rising 8.6 percent above 2019 levels to nearly $2.1 trillion, while domestic visitor spending is expected to rise 13.6 percent to $5.6 trillion. Annual growth for 2025 is forecast at 10 percent for international and 5.1 percent for domestic spending.
In May, WTTC projected the U.S. stood to lose $12.5 billion in international travel spending this year, falling to under $169 billion from $181 billion in 2024. The council said U.S. needs to do more to welcome international visitors rather than “putting up the ‘closed’ sign.”