Choice Hotels International ends franchises with Real Hotel Group

02 February 2009 by
Choice Hotels International ends franchises with Real Hotel Group

Choice Hotels International, owner of the Comfort and Quality hotel brands, has terminated its franchises with The Real Hotel Group (RHG), which went into administration last month.

As a result the 22 hotel properties operated in the UK under franchise by RHG will no longer be able to trade under the Comfort, Quality and Clarion brands.

Duncan Berry, chief operating officer of Choice Hotels Europe, said: "The demise of The Real Hotel Company the trading subsidiary of the Real Hotel Group ] has given us the opportunity to strategically review our UK hotel portfolio against our new brand standards that are being rolled out across Europe."

"While withdrawing Choice Hotels' brands from the hotels formerly operated by The Real Hotel Company will mean there will be fewer Choice Hotels properties in the UK in the short term, we continue to pursue a strategy to grow the number of franchised hotels here in the UK and around the world."

Last year Choice Hotels announced it had entered into an area representative agreement with Ireland-based Kasterlee for the exclusive right to license and develop Choice Hotels' Clarion brand in the United Kingdom, Germany and Russia.

Under the agreement, Kasterlee will develop a minimum of 16 Clarion branded hotels within eight years.

Choice hotels opened five hotels in December in Europe and a further three last month. The Quality Hotel in Maida Vale, London will open in the coming months.

150 jobs lost as Real Hotel Group closes four hotels>>

Hotel insolvencies double with worse to come>>

Last Folio hotel sold by administrators>>

Real Hotel Group collapses into administration>>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

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