Choice Hotels in India has tied up with Suba Group of Hotels for 15 years as it aims to transition from the direct franchise market to the master franchise model. Suba Group will assume responsibility as the master franchise holder for 58 hotel properties that are open and under construction in India. The company also holds the rights to develop the Clarion, Kwality and Comfort brands in the market.
All franchised hotels will remain within the Choice Hotels network under the brand. Trent Fraser, CEO, Choice Hotels Asia-Pacific, said: “We are excited to be working with the Suba Group of Hotels as we look at the next 15 years of portfolio growth in India. Suba has nearly 30 years of experience in the region. history and has built a strong local offering in midscale and upscale markets.”
He added that the master franchise model, the company has worked exceptionally well for Choice Hotels in other markets across the Asia-Pacific. “We are confident in the collective value proposition that it represents for current and potential franchisees and look forward to welcoming many more properties,” Fraser said.
Mansoor Mehta, Managing Director, Suba Group of Hotels said, “This agreement is in line with our vision to become the largest hotel chain in India. With this agreement, we will add 2,200 keys to our existing portfolio of 2,900 keys, taking our position to 5,100 keys across 57 destinations across India.”
JLL was an advisor to Choice Hotels Asia Pacific for the deal.
According to IBEF, India’s hospitality sector market stood at $32 billion in FY20 and is expected to reach $52 billion by FY27, due to the increasing demand from travelers and the continuous influx of travel agents to boost the market. Inspired by efforts.