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.
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.”
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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Spark acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey.
Hunter Hotel Advisors facilitated the transaction with DC Hospitality Group affiliates.
The 2020-built hotel is near William Paterson University and less than 20 miles from Manhattan.
SPARK GHC RECENTLY acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey, from affiliates of DC Hospitality Group. Hunter Hotel Advisors facilitated the deal for an undisclosed amount.
The 2020-built hotel is less than 20 miles from Manhattan in a commercial corridor with major employers including Driscoll Foods, FedEx Group, Advanced Biotech, St. Joseph’s Wayne Hospital, and the Passaic County Administration, Hunter said in a statement. William Paterson University, Willowbrook Mall, and MetLife Stadium are also nearby.
It features an on-site fitness center, business center and indoor pool.
“The Home2 Suites by Hilton Wayne represents the type of asset we target,” said Patel. “Its proximity to major corporate demand generators, higher education institutions, and retail and entertainment venues supports strong performance.”
Hunter’s senior vice presidents, David Perrin and Spencer Davidson, brokered the transaction.
Patel said this is their second transaction with Hunter and praised the process and partnership.
“We look forward to building on the hotel’s recent performance and continuing to deliver guest experiences in the Greater New York City community,” he said.
Northstar Hotels Management recently acquired a 78-key Residence Inn and an 81-key Courtyard near the Jacksonville, Florida, airport.
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.