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.
FRANCHISEE RESILIENCE AND determination was the focus of Choice Hotels International’s 66th annual convention in Las Vegas last week. In keeping with that theme, in a press conference at the convention, corporate leadership for Choice said they are working with AAHOA on ways to implement the association’s recently updated 12 Points of Fair Franchising.
More than 5,200 people attended the conference, including franchisees and their families. Other news from the event includes the announcement of a new program to promote women ownership of hotels and the hiring of two new franchise development directors.
Time to Go
“GO” was the theme of the convention, in recognition of the struggles Choice’s franchisees have faced over the past three years of pandemic and economic downturn. The company overcame those challenges, driving new business, advocating for government aid and reducing operating costs for franchisees, said Patrick Pacious, Choice’s president and CEO. It also surpassed 2019 system-wide performance levels.
"Thanks to the extraordinary efforts of owners, their staff and our associates, we are collectively stronger today than the last time we convened in Las Vegas in 2019, and we are ready to GO," said Pacious. "We know that for our franchisees, investing in the Choice brand family – whether owning one hotel or several – is deeply personal. That's why we are especially proud of our ability to adapt and innovate in the face of uncertainty to help them manage and overcome all kinds of challenges."
During the conference, Pacious and other company leaders stressed other achievements by the company, such as new investments, improvements to the company's marketing and distribution channels and enhancements to its revenue management systems, all to benefit franchisees.
"Our franchisees are at the center of everything we do at Choice – that is our guiding star. When the pandemic began, we took immediate action to not only help keep hotel doors open and the lights on for guests, but we continued to find ways to help drive revenue," said Pacious. "Because of the unparalleled determination of our franchisees and our associates, combined with our strategic decisions and targeted actions, Choice is leading the industry's recovery and we are ready to GO confidently into the next era of growth and success."
12 reasons why
Pacious attended a media roundtable during the conference along with Robert McDowell, Choice’s chief marketing officer; David Pepper, chief development officer; and John Bonds, senior vice president of enterprise operations and technology. During the roundtable, Pepper reiterated the view that Choice took care of its franchisees during the pandemic.
“We have some very happy franchisees,” Pepper said. “This company really proved itself during the downturn that not only with great brands and in the right segments, but we're also the right company because they knew they had somebody to work with the whole time.”
All four executives said they were aware of AAHOA’s 12 Points of Fair Franchising, which was a major topic at AAHOA’s own convention a few weeks before.
“I will focus on demanding that each and every brand implement AAHOA’S 12 points of Fair Franchising,” said Kamalesh “KP” Patel of Santa Cruz, California, the new AAHOA secretary, during the secretary candidates’ debate during the conference. “Our industry needs an overhaul and that starts now. No more unnecessary mandates that take away from our bottom line just to grow theirs. No more brand expansion, stop making us compete with each other. And no more kickbacks that double and triple costs. It stops today.”
Mike Patel, a former AAHOA chairman, said AAHOA as an organization is trying to remain neutral between members and brands, and he respects that stance. However, he said hotel companies still should consider it in their best interests to listen to members concerns.
“People have a choice whether to buy the brand or not the brand, or don’t go to the vendors, don't buy from them,” he said. “I think AAHOA can implement that because you cannot turn a blind eye on people who do business and then they abuse your members. Then you have certain kind of responsibility I feel.”
Exit fees, called liquidated damages, charged to franchisees who want to exit a brand need reform, Mike said. Currently they average about $2000 to $3,000 per room to break the contract to get out.
“So, if you're a 100-room property, you'd have to spend $300,000,” Mike said.
Also of concern, and mentioned in the 12 points, is the use by some brands of preferred or mandatory vendors. Mike said these mandates can force franchisees to pass on outside vendors who can provide better pricing for goods or services.
Bonds said Choice has talked AAHOA’s general counsel to better understand the 12 Points. He and McDowell’s team will be working on how to work within them where possible.
“We've reviewed them I think that they're covering a whole host of topics,” Bonds said. “It's a long list and we've been through it. We understand where they're coming from. It's really a chance for us to collaborate and work together more closely on how we can enhance the value of franchisees’ annual investment.”
Regarding the liquidated damages, Bonds said, Choice already is at least partially compliant with the 12 steps.
“One of the things they asked is do you have discussions and are open to conversations on how liquidated damages are assessed?” Bonds said. “We do that.”
Regarding vendor mandates, McDowell said there's a price and quality piece of the situation.
“With the quality part, I have to make sure because that's critical. I think the other piece is, we want to make sure we have vendors that can supply all of our hotels across the U.S. And we do want some type of consistency within the brand for the guests,” McDowell said. “We do negotiate on price with many of our vendors And that's ultimately why we have the qualified vendor programs.”
McDowell also said Choice does have waiver option for using outside vendors, the details of which vary according to brand and items to be purchased. There are three primary reasons for requiring franchisees to use certain vendors.
“It's really about volume, quality, and price,” McDowell said. “Those are really the three key things we look for. And we work very closely with our owners’ group as well the brands teams on what they're looking for.”
Pacious reaffirmed that the relationship between Choice and AAHOA is strong.
“Our relationship with AAHOA goes back to its founding, we have worked shoulder to shoulder with them over the years on getting more Indian Americans in ownership and the relationship between us and them has always been a strong one,” Pacious said. “We look at the things we've worked together on particularly over the last several years shoulder, to shoulder with them on a lot of legislative issues. We're continuing to work with them on education and a variety of other topics as well. And with their new focus on the 12 Points of Fair Franchising.”
New focus on diversity
Also during the convention, Choice announced its “HERtels By Choice” program that will provide training, education, mentorship and financial assistance to women entrepreneurs to help them succeed as Choice franchisees.
The financing support includes assistance with loan applications and education on equitable financing terms. The training is open to members of the Choice system through its Choice University that also includes program-specific trainings designed to optimize their onboarding and operating journey. The mentorship includes executive coaching from industry veterans and current Choice owners to discuss best practices and build confidence.
John Lancaster, Choice’s vice president for emerging markets, franchise development and owner relations, announced the launch of the “HERtels By Choice” program that will provide training, education, mentorship and financial assistance to women entrepreneurs to help them succeed as Choice franchisees.
Since last March, as part of a focused effort to increase female ownership and lay the groundwork for the HERtels, the company awarded 25 contracts specifically to women entrepreneurs.
"The central tenets of the HERtels by Choice program – connecting and empowering – are not new to Choice. For decades, we've helped deserving, growth-minded entrepreneurs enter the rewarding business of hotel ownership with industry-leading tools, support and resources," said John Lancaster, Choice’s vice president for emerging markets, franchise development and owner relations. "HERtels by Choice represents an important next step in our mission to fueling a diverse owner base and small business success."
New faces
Choice also announced the hiring of Jacquelyn Peterson and Marcus Thomas as franchise development directors. Both are emerging markets directors, Peterson to focus on bridging the gaps between veteran and female entrepreneurs and hotel ownership and Thomas to oversee development in the company's African American, Latin American and Native American emerging market segments.
Jacquelyn Peterson, left, and Marcus Thomas are Choice’s new franchise development directors. Both are emerging markets directors, Peterson to focus on bridging the gaps between veteran and female entrepreneurs and hotel ownership and Thomas to oversee development in the company's African American, Latin American and Native American emerging market segments.
Peterson holds a bachelor's degree in hotel, restaurant and tourism management from the University of South Carolina and a master's degree in leisure studies from the University of Georgia. Thomas most recently served as a senior consultant for Konica Minolta, a Tokyo-based multinational technology company. He holds a degree in business administration and international business from Sam Houston State University.
"Since forming the industry's first emerging markets-focused development team, Choice has awarded and financially supported more than 300 franchise agreements with under-represented minorities and seasoned entrepreneurs, including nearly 30 contracts last year alone,” Lancaster said. “Jacquelyn and Marcus are both results-driven, charismatic leaders whose wealth of industry experience will help the company build on its commitment to supporting a diverse franchise base."
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.
In July, Peachtree launched a $250 million fund to invest in hotel and commercial real estate assets mispriced due to capital market illiquidity.
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The Highland Group: Extended-stay occupancy, RevPAR and ADR declined in August.
Room revenue rose 0.4 percent, while demand increased 2.2 percent.
August marked the second time in 47 months that supply growth exceeded 4 percent.
U.S. EXTENDED-STAY OCCUPANCY fell 2.1 percent in August, its eighth consecutive monthly decline, while ADR declined 1.8 percent and RevPAR dropped 3.9 percent for the fifth consecutive month, according to The Highland Group. However, total extended-stay room revenue rose 0.4 percent year over year.
The Highland Group’s “US Extended-Stay Hotels Bulletin: August 2025” noted that summer leisure travel has a greater impact on the overall hotel industry than on extended-stay hotels.
“August’s performance metrics further indicated that economy extended-stay hotels are weathering the hotel industry downturn better than most hotel classes, especially at lower price points,” said Mark Skinner, The Highland Group partner.
The 2.1 percent drop in extended-stay hotel occupancy in August was the eighth straight month of decline, the report said. Occupancy declined more than the 1.3 percent drop STR/CoStar reported for all hotels. However, extended-stay occupancy was 11.3 percentage points higher than the overall hotel industry, consistent with long-term late-summer trends.
The 1.8 percent decline in extended-stay ADR was partly due to a larger share of economy supply in August 2025 versus August 2024, the report said. Economy extended-stay ADR fell for the first time since May 2024 but outperformed the 3.4 percent drop for all economy hotels reported by STR/CoStar. Mid-price extended-stay ADR also declined, while upscale extended-stay ADR fell more than upscale hotels overall.
RevPAR fell 3.9 percent in August, the fifth straight monthly decline and the largest in 2025. The overall drop was greater than individual segment decreases because economy supply made up a larger share than in August 2024. STR/CoStar reported RevPAR declines of 5.7 percent for economy, 2.6 percent for mid-price and 2 percent for upscale hotels.
Revenue, demand and supply trends
Extended-stay room revenue rose 0.4 percent in August from a year earlier, The Highland Group said. STR/CoStar reported overall hotel revenue fell 0.1 percent and excluding luxury and upper-upscale segments, revenue fell 2 percent. STR/CoStar also reported August room revenue declines of 6.4 percent for economy hotels, 1.4 percent for midscale and 0.7 percent for upscale compared to August 2024.
Extended-stay demand rose 2.2 percent in August, the second-largest monthly increase in seven months. STR/CoStar reported total hotel demand fell 0.4 percent. Adjusting for the extra day in February 2024, extended-stay demand has grown in 32 of the past 33 months.
August was the second time in 47 months that supply growth exceeded 4 percent, the report said. Supply has risen about 3 percent year to date. Annual supply growth ranged from 1.8 to 3.1 percent over the past three years, below the long-term 4.9 percent average.
The 8 percent rise in economy extended-stay supply, with minimal change in mid-price and upscale rooms, is mainly due to conversions, as new economy construction accounts for about 3–4 percent of rooms compared to a year ago.
The Highland Group reported that economy, mid-price and upscale extended-stay segments led first-quarter 2025 RevPAR growth over their class counterparts. The report noted 602,980 extended-stay rooms at quarter-end, a net gain of 17,588 rooms over the past year, the largest in three years.
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.”