hotels: Choice Hotels Asia Pacific signs 15-year master franchise agreement with Suba Group of Hotels in India

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Choice Hotels Asia Pacific has signed a 15-year master franchise agreement with Suba Group of Hotels in India. Effective July 1, Choice Hotels in India will transition from a direct franchise market to a master franchise model. ET was first to report on June 16 that Suba Group could take over as the master franchise for Choice Hotels in India.

Suba Group of Hotels said in a statement Monday that it will assume responsibility as the master franchisee for all 58 Choice Hotels properties open and under development in India and will hold exclusive development rights to the Clarion, Quality and comfort in the market.

The company also said that all franchised hotels will remain within the Choice Hotels network under the brand and will continue to benefit from the marketing, distribution and franchisee performance services currently in place.

Choice Hotels Asia-Pacific CEO Fraser said Suba has a nearly 30-year history in the region and has built a “strong” local offering in mid- and high-end markets. “Adding the Clarion, Quality and Comfort brands to their portfolio is a natural fit, and we are thrilled to welcome them to the Choice Hotels global network as a master franchisee. The master franchise model has worked exceptionally well for Choice Hotels on other markets across Asia-Pacific, and even worldwide,” he said.

“We are confident in the collective value proposition this represents for current and potential franchisees and look forward to welcoming many more properties to the Choice Hotels network in India through our collective efforts with the Suba team,” said he added.

Mansur Mehta, MD, Suba Group of Hotels said the master franchise agreement is in line with the company’s vision to become India’s largest hotel chain. “With this agreement, Suba Group of Hotels will add 2200 keys to its existing portfolio of 2900 keys, increasing its position to 5100 keys in 57 destinations across India. This acquisition will allow us to serve customers looking for a budget as well as flagship properties that meet business and leisure requirements,” he added.

JLL acted as exclusive advisor to Choice Hotels Asia Pacific on this transaction. Jaideep Dang, managing director of JLL Hotels and Hospitality Group South Asia, said the deal demonstrates an increase in investor sentiment for the hospitality sector in India.

Founded by Abubaker Mehta, the Suba hotel group operates under the label of 9 brands: Suba Hotels (upscale), Choice Hotels, which owns the Comfort (economy), Quality (upscale) and Clarion (upscale) brands. range). The Click hotel brand operates Click Hotels (budget hotels), Click Collection (upscale hotels) and Click Resorts. In the budget segment, the company owns the GenX and RNB brands.

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