Travel Q&a: Choice Hotels Ceo Stephen Joyce

Stephen Joyce joined Choice Hotels International in May 2008 as president and soon became CEO of the company best known for Comfort Inn, Clarion and other budget chains.

Joyce didn't have to move far to join his Silver Spring, Md.-based employer, having worked at Marriott for 25 years just a few miles away.

He spoke with USA TODAY recently to discuss his transition into the top job, the effects of the economic downturn and his desire to acquire more upscale brands.

�How is the economy affecting your business? We have worked with franchisees to be relatively lean already. When you see some lodging companies shortening breakfast hours or something else to save money, we've done a great deal of that already.

FIND MORE STORIES IN: Chicago | Silver Spring | Holiday Inn Express | Md.-based | Comfort Inn | Marriott Residence Inn | Cambria Suites | Comfort Suites | Choice Hotels International | Sleep Inn | Clarion Collection We're not going to announce new programs, and will tread very softly on capital requirements during the year. We're going to be a lot more flexible about the timetable of some (amenities) that we've announced.

Our amenities package is pretty basic. There's no shoe mitt to take out. If something goes into the room, it'd better be something that's needed.

�Choice Hotels is known for budget brands. Are you marketing your hotels to capture the country's newfound sense of frugality? Absolutely. We (have) a value-oriented set of brands and we're going to make sure we get that message out there. You haven't seen anyone in a congressional hearing stand up and yell about Comfort Inn. Now is our time.

Our (requests for proposal) were up 35% (last fall from a year ago) from customers who hadn't asked us to bid on their business before. Fortune 500 companies didn't look us up before.

�Choice Hotels' most recently launched brand is Cambria Suites, its most upscale brand yet. How's that going? It was looking promising until the financial market totally collapsed on us. We have 13 opened now and (will have) 20 by the end of the year. The product is off the charts from the testing and consumer (response) standpoint.

We're doing ok, but we're not moving where we're hoping to. We have 70 to 75 hotels in the pipeline, and we were hoping for 150 by mid-year.

�Choice Hotels also launched The Ascend Collection last year. Why? We had Clarion Collection. It was poorly named. We renamed it Ascend. It's not a brand, but a collection of hotels (with) boutique, historic or resort themes. I was talking to a guy in Chicago who was doing a high-end boutique hotel. I said 'suppose I can generate a chunk of your business for you.' I said no self-respecting boutique customers are going to go to ChoiceHotels.com, but our customers go there and see distribution in urban markets.

�Choice has 10 brands, many of them priced similarly. Is there confusion among your customers in distinguishing the brands? We have clear identification and knowledge in Comfort Inn. There is some blurring (in other brands). Before I started, there was a plan to separate and distinguish the brands more � in look and feel and price points. We'll be introducing (the results) at a conference in May.

Comfort Inn and Comfort Suites � that family is the most important jewel in the crown. It's 2,000 plus hotels and where half of our business comes from. That is the number one target in tightening up and making it more competitive...with Marriott Fairfield and Holiday Inn Express. What you'd expect is a crisper, slightly more upscale (look).

We're in the process of redesigning Sleep Inn, which will give it a current and vibrant feel. We're cautious about 2009 scenarios. It's not a one-year program.

�What other new brands would you like to build or acquire for Choice down the road? I have a strong desire to bring in an upscale extended-stay (brand), a la Marriott Residence Inn. But this isn't a year to launch a brand.

I also come from a full-service (hotel) background. I'd like to buy an upscale full-service brand. While we're strong in leisure, I think it'd be great to have a brand built more of business customers.

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