Choice Hotels will open its biggest Asia-Pacific region hotel in Perth later this year after striking a franchise agreement with the Singaporean developers of new 204-room hotel near Perth Airport.
The new INGOT Hotel Perth, which will trade as part of Choice’s upscale Ascend Hotel Collection group, is one of four new hotels that will join the network, adding 400 rooms to its existing franchise network of more than 11,000 rooms.
“Total construction investment from our franchisee partners across these four new-build projects alone is estimated to be in excess of $100 million,” said Trent Fraser, CEO of Choice Hotels Asia-Pacific.
The three other new-build hotels are a 105-room Quality Hotel Flemington near Flemington Racecourse in Melbourne, an 80-room Quality Hotel Lakeside Bendigo, and a Clarion Suites Christchurch with 42 rooms.
In addition, another three existing hotels will soon rebrand under one of Choice’s brands.
Mr Fraser said it had been the best start to the year for the company that he could remember.
“We are among the most franchised nations in the world per capita, but hotels have been a little bit slow to catch on in the franchised space,” Mr Fraser said.
“Today there is a growing demand from owners to look at the franchised option. We getting more inquiries then we ever had.”
He noted that two of the new hotels, the INGOT hotel Perth and the Quality Hotel Flemington, were being undertaken by existing Choice franchisees.
“We hope it inspires other franchisees to do the same. There’s a higher level of risk with developing a new hotel without an existing track record of trading,” he said.
The new Perth hotel being developed by the Singapore-based SAC Nominees (the Ng family) is on the site of the former Comfort Inn Bel Eyre Perth hotel at 285 Great Eastern Highway. It is currently under construction.
“We are intrinsically joined at the hip with our franchisees,” Mr Fraser said. “We share in the upside [through an agreed percentage of turnover], but also take responsibility and share in the downside.”