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Choice Hotels signs 15-year master franchise agreement with Suba Group
- Suba Group of Hotels will assume responsibility as the master franchise holder for the 58 hotel properties open and under development in India.
Choice Hotels in India has signed a 15-year deal with Suba Group of Hotels as it aims to transition from a direct franchise market to a master franchise model. The Suba Group will assume the responsibility as the master franchise holder for the 58 hotel properties open and under development in India. The company also owns the rights to develop the Clarion, Quality, and Comfort brands in the market.
All the franchised hotels will remain within the Choice Hotels network under the brand. Choice Hotels Asia-Pacific CEO, Trent Fraser, said: “We’re excited to work with Suba Group of Hotels as we look to the next 15 years of portfolio growth in India. Suba has close to a 30-year history in the region and has built a strong local offering in the midscale and upscale markets.”
The master franchise model, the company has worked exceptionally well for Choice Hotels in other markets throughout Asia-Pacific, he added. “We’re confident in the collective value proposition this represents for current and prospective franchisees and are looking forward to welcoming many more properties,” Fraser said.
Mansur Mehta, Suba Group of Hotels‘ managing director said, “The agreement is in line with our vision of becoming the largest hotel chain in India. With this agreement, We will add 2200 keys to our existing portfolio of 2,900 keys, taking our position to 5,100 keys in 57 destinations across India.”
JLL was the advisor to Choice Hotels Asia Pacific for this transaction.
According to IBEF, India’s hospitality sector market was $32 billion in FY20 and is expected to reach $52 billion by FY27, driven by the surging demand from travelers and sustained efforts of travel agents to boost the market.
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First Published:4 Jul 2022, 02:33 PM IST
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