Choice Hotels Sees Budget Brands Deliver 2020 Rarity: Profitability
Photo Credit: Choice Hotels' continued financial strength through the pandemic is due to hotels oriented to mid-market, domestic travelers. Choice Hotels
Skift Take
The core of travel demand continues to be drive-to and leisure travel. A portfolio that encompasses those two elements fueled Choice Hotels' shocking full-year profit during the middle of a global pandemic.
A hotel portfolio of properties largely in drive-to settings and outside major urban centers enabled Choice Hotels to clinch a profitable year despite a global pandemic that decimated travel demand.
Choice Hotels achieved a $7.9 million fourth quarter profit and $75.4 million profit for all of 2020, the company reported Monday. This is a major financial milestone within the hotel industry, as the pandemic’s impact created the worst year on-record for most travel companies. Hilton earlier in the day reported a $720 million 2020 loss, and Wyndham posted last week a $132 million 2020 loss.
Choice’s leadership team chalks up the success to their existing hotel footprint in where most travel demand comes from these days: leisure travelers in the limited-service sector.
“Choice Hotels achieved a number of key milestones that demons
