JLL Hotels & Hospitality Group, as exclusive advisor, has secured the sale of the Master Franchise Rights to three core Choice Hotels brands within the Indian market for the next 15 years.
JLL Hotels & Hospitality Group, as exclusive advisor, has secured the sale of the Master Franchise Rights to three core Choice Hotels brands within the Indian market for the next 15 years. Under the agreement, Choice Hotels in India will transition from a direct franchise to a master franchise model.
With the agreement, Suba Group of Hotels will assume responsibility as master franchise holder for the 58 Choice Hotels properties open and under development in India, and hold the exclusive rights to develop the Clarion™, Quality™ and Comfort™ brands in the market with a target to open over 150 properties over the course of the arrangement.
Choice Hotels Asia Pacific CEO Trent Fraser said, “We’re Incredibly excited to work with Suba Group of Hotels as we look to the next 15 years of portfolio growth for Choice Hotels in India.
Suba has an almost 30-year history in the region and has built a strong local offering in the midscale and upscale markets. Bring the Clarion, Quality and Comfort brands to their portfolio is a natural fit, and we are delighted to welcome them to the Choice Hotels global network as a master franchisee.”
The master franchise model has worked exceptionally well for Choice Hotels in other markets throughout Asia-Pacific, and indeed around the world. We’re confident in the collective value proposition this represents for current and prospective franchisees and are looking forward to welcoming many more properties to the Choice Hotels network in India through our collective efforts with the Suba team. We would also like to thank JLL’s truly regional team for their tireless work to secure the transaction.”
Suba Group of Hotels Managing Director Mansur Mehta added, “We are delighted to acquire the exclusive master franchise rights to Choice Hotels’ Clarion, Quality and Comfort brands in India.
Our dedicated team are excited by the opportunity to service and further develop these trusted and well-recognised brands as we look to aggressively expand within the region.
Adam Bury, Executive Vice President, JLL Hotels & Hospitality Group, said, “It has been a pleasure to work with both Choice and Suba on the transaction. The Hospitality sector in India has witnessed a recovery in developer activity, with an increase in branded hotel signings and openings over the last few quarters, particularly in Tier II and Tier III cities on the back of strong economic growth and increase in regional connectivity.”
He continued, “We see the vast potential for growth within the Indian hotel market and believe that this transformational arrangement and the master franchise agreement model agreed will put both organisations on a strong growth trajectory. We look forward to seeing this new partnership flourish.”