Choice Hotels International is offering minorities an economic boost worth $155,000 under a new incentive program designed to increase ownership and spark new development of the Sleep Inn brand.
“We’re trying to make it easy for minorities to get into the hotel business,” said Brian Parker, VP-emerging markets and new business development. “We want to keep money in their pockets and remove any barriers for them to enter this business.”
Costly upfront expenses and lack of management experience are two main deterrents that often prevent minority developers from entering the hotel building industry, Parker said. But Choice Hotels wants to put a stop to the cycle, he said.
To help defray the costs associated with building a new hotel, Choice Hotels International is offering qualified African American, Hispanic and Native American entrepreneurs special development incentives valued up to $155,000 via the Sleep Inn Minority Incentive program.
The program, launched last month in response to client feedback, is designed to increase minority ownership of a mid-scale hotel brand. Under the incentive program, minority entrepreneurs can receive up to $5,000 in reimbursements for a hotel feasibility study— of the first steps required for hotel ownership.
The incentive program also offers a 50% affiliation fee reduction— from $40,000 to $20,000— a $70,000 grand opening incentive that can be used for hotel related costs at any hotel grand opening. The incentive program also includes up to $50,000 toward the first year’s cost of professional management company fees.
“In year one, it’s critical they get off to a good start,” Parker said of hotel operators.
Lastly, the program offers free software support services and training for developers worth $7,500 and three days of program training worth another $2,500.
Less than a month after the program launched, a handful of developers have already expressed interest in the incentive program, Parker said. “The excitement is definitely out there,” he said.
The program is ongoing. Direct mail and e-mail blasts support.
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