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.
In our exclusive Leadership Series interview, Pat Pacious, president and CEO of Choice Hotels International, reflects on his organization’s relationship with AAHOA, his opposition to the proposed New Jersey State legislation on fair franchising and why Asian hoteliers are still important to the company. In the end, he said, it’s about keeping state governments out of a dialogue that should be held between franchisers and their franchisees regarding subjects such as selling loyalty points and revenue from preferred vender programs.
Pacious also discussed other key topics in the conflict between AAHOA and several large hotel companies, including Choice as well as Marriott International. Also in the interview, held at Choice’s recent 67th Owner & Franchisee Convention in Las Vegas, Pacious discusses topics addressed at the convention, such as Choice’s recent acquisition of Radisson Hotels Americas. He also comments on the company’s offering to current and future franchisees and the importance of Asian American owners.
‘This is not about fair franchising’
In February, Choice announced it would “pause its partnership” with AAHOA, according to an alert to AAHOA members. AAHOA said Choice’s decision came in response to AAHOA’s 12 Points of Fair Franchising and its public support for New Jersey Assembly Bill A1958, which would make changes to the New Jersey Franchise Practices Act. Prior to Choice’s action, Marriott had announced it was withdrawing its support for AAHOA for the same reason, and both companies chose not to attend the 2023 AAHOA Conference and Trade Show in Los Angeles in early April. Other companies, including Hilton and IHG Hotels & Resorts, also did not attend.
Pat Pacious said Choice foresaw trends such as remote work and the federal infrastructure bill and is therefore well prepared for the future.
Pacious put his company’s decision in a different light.
“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.”
Talks with AAHOA leadership are still ongoing, Pacious said. There are some sticking points.
“I think it's really around do you want a state government to be involved in your commercial contract?” Pacious said. “At the end of the day, we've always improved our relationship from a franchisee and franchiser perspective through conversations. That's the direction that we're headed and that's the direction we're going to stay.”
Pacious gave a similar response in a previous interview to explain Choice’s opposition to Arkansas House of Representatives House Bill 1783. The bill would modify the state’s Franchise Practices Act to give the state a larger role in settling differences between franchisers and franchisees.
Janis Cannon, Choice’s senior vice president of upscale brands, updates convention attendees on the progress of the company’s absorption of newly acquired Radisson Hotels Americas properties.
“Franchising has been a fantastic wealth creator for small business people for over 50 years. And it is a model that has worked very well,” Pacious said. “The regulatory aspect of it has primarily been around disclosure between the franchiser and the franchisee who's buying that franchise whether it's a quick service restaurant or a hotel business, and that's worked very well. I think what you're seeing now is there are certain states where there's an effort to get the state between the franchiser and the franchisee. And that's not good for asset owners at the end of the day.”
Disclosure of the terms of franchise agreements already is required by federal law, Pacious said. There is no need for state legislatures to get involved.
“We feel very good about the existing relationships and the way that the franchiser/franchisee relationship has evolved, particularly in the hotel segment, is through dialogue and at Choice we have probably been the most franchisee friendly franchiser,” he said. “That's proven to be very effective, it's allowed us to listen to what their needs are and respond and allows us to make sure that there's brand consistency. That's been a very effective way of doing it is having two business partners sit down and have discussions as opposed to having a state come in because that is a blunt force instrument that doesn't understand every hotel was different, every market is different. And it doesn't allow for the flexibility that I think we've had as an industry to really drive a win-win for both sides.”
‘A small part of what we do’
Two of the main issues for AAHOA concern the direct sale of loyalty points by some brands and revenue generated by preferred vender programs through fees, rebates and commissions paid by participating venders. Pacious gave answers to Choice’s positions on both issues.
On the sale of Choice Rewards points, he said that is “a very small part of what we do.”
“We are not a big point seller,” Pacious said. “Those are dialogues, again, that I think are best left for us as a as a franchiser to be having directly with our with our owners.”
Pacious also said the top redemption for points is one free room night. In a later clarification, Choice said 89 percent of points redeemed and 85 percent of all redemptions in fiscal year 2022, were used towards Rewards nights.
“These nights are an important component of the Choice Privileges program. Once a guest earns a reward night, we find they become much more attached to the program and to Choice’s brands, driving repeat stays to earn more points and even more rewards,” Choice said.
According to Choice’s 2022 franchise disclosure document, the company brought in $86.9 million from franchisee purchases in 2021, including “revenues from Qualified Vendors and choiceADVANTAGE installation and support fees.” That equates to 8.14 percent of Choice’s total revenue for that year. Pacious gave an idea where at least some of that money goes.
Choice hotel owners mix with venders on the trade show floor at the company’s recent convention.
“The money that we work with our vendors to create is what supports the massive trade show we're doing right now,” Pacious said. “If you look at the huge amount of commerce that's going on on that tradeshow floor, those vendors, it costs money for them to come here, it costs money for us to put the show on. That's how we spend our dollars to make sure that we're helping our owners find the best product at the lowest price. And we're very open with them about how we're working through that. And so again, through dialogue, that's where we get better venders, that's where we get better demand for the right product and that's really how we've always approached the procurement side of the business.”
Radisson incorporation almost complete
Pacious also said the company is on track to complete incorporation of the newly acquired Radisson properties by August. Choice has been working closely with Radisson Hotel Group on the transition.
“The sellers of the brands in the Americas, they picked us. They chose Choice Hotels because of the stewardship we've shown with our existing brands, and also our ability to grow brands,” Pacious said. “We are in partnership with them on the sort of global brand standards and logos and those types of things to maintain some consistency at that level, but allowing for the development in this particular market. If brands need to shift somewhat to attract the right developer. It gives both of us the flexibility to do that.”
The Radisson owners are particularly happy about Choice’s drive to increase drive direct reservations, bypassing OTAs, said Pacious.
Choice President and CEO Pat Pacious discussing the company’s extended-stay brands during a session at the recent 67th Owner & Franchisee Convention in Las Vegas.
“We have shifted this channel mix away from OTAs and towards the .com delivery that that we provide,” Pacious said. “In the conversations with the Radisson Hotel Group owners Country Inn and Suites and Radisson brand owners, they're really excited to get onto our platform, which we will be doing later this year, because of that ability to reduce the amount of third-party contribution and drive up their direct contribution, which is their lowest cost and highest rate delivery channel.”
The final word
Pacious said Asian Americans comprise around 60 percent of Choice’s franchisees.
“It has been growing as we have done a lot of work with that community to really help them get started,” Pacious said. “Once we get owners in our community, they don't like to leave, we have the industry's highest retention rate. They are always asking us what's coming next, what is Choice Hotels working on next that might meet the demand trends that we're going to see in the future and we always have some something new to bring to the table.”
Choice’s news for those curious franchisees is good, Pacious said.
“The future is exceptionally bright and the reason for that is what I call the five R's,” Pacious said. “We're seeing rising wages, we are seeing more retirements, we are seeing remote work, we are seeing the rebuilding of America with the infrastructure bill. And we're also seeing a lot more road trips. It's an exceptional set of trends.”
These are trends that Choice identified several years ago, Pacious said. They used the information to ensure that were offering the right product to put Choice’s hotels “in the sweet spot.”
“We saw these trends coming. We're ahead of the curve on them. We are out there with proven prototypes and proven brands in these segments that can really capitalize on that,” Pacious said. “We're looking at where this entire opportunity from a demand perspective is going to be the pie is getting larger, and our brands are in the right place to really capitalize on those trends. That's why I'm so bullish on our opportunity going forward.”
Peachtree recognized by Inc. and the Atlanta Business Chronicle.
Named to the 2025 Inc. 5000 list for the third year.
Chronicle’s Pacesetter Awards recognize metro Atlanta’s fastest-growing companies.
PEACHTREE GROUP ENTERED the 2025 Inc. 5000 list for the third consecutive year. The company also won the Atlanta Business Chronicle Pacesetter Awards as one of the city’s fastest-growing private companies.
The Inc. 5000 list provides a data-driven look at independent businesses with sustained success nationwide, while the Business Chronicle’s Pacesetter Awards recognize metro Atlanta’s fastest-growing privately held companies, Peachtree said in a statement.
“We are in the business of identifying and capitalizing on mispriced risk, and in today’s environment of disruption and dislocation, that has created strong tailwinds for our growth,” said Greg Friedman, managing principal and CEO. “These recognitions validate our ability to execute in complex markets, and we see significant opportunity ahead as we continue to scale our platform.”
The Atlanta-based investment firm, led by Friedman; Jatin Desai, managing principal and CFO and Mitul Patel, principal, oversees a diversified portfolio of more than $8 billion.
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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.
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."
U.S. CMBS delinquency rate rose 10 bps to 7.23 percent in July.
Multifamily was the only property type to increase, reaching 6.15 percent.
Office remained above 11 percent, while lodging and retail fell.
THE U.S. COMMERCIAL mortgage-backed securities delinquency rate rose for the fifth consecutive month in July, climbing 10 basis points to 7.23 percent, according to Trepp. The delinquent balance reached $43.3 billion, up from $42.3 billion in June.
Trepp’s “CMBS Delinquency Report July” showed multifamily led the increase, with its delinquency rate rising 24 basis points to 6.15 percent. Lodging fell 22 basis points to 6.59 percent and retail declined 16 basis points to 6.90 percent. Office delinquencies edged down to 11.04 percent after hitting a record 11.08 percent in June.
Loan-level analysis showed $4.4 billion in loans became newly delinquent in July, exceeding $3 billion that cured. Mixed-use, retail and office each accounted for more than $800 million of newly delinquent loans.
The seriously delinquent share, 60+ days, foreclosure, REO, or non-performing balloons, rose to 6.93 percent, Trepp said. Excluding defeased loans, the overall delinquency rate would be 7.41 percent.
A separate report from Lodging Econometrics showed the global hotel pipeline at 15,871 projects, up 3 percent year-over-year, totaling 2,436,225 rooms, up 2 percent.