Choice Hotels International (NYSE:CHH) is a leading worldwide franchisor of hotels and the nation’s first hotel chain (1941). The company franchises over 5,400 hotels under the Comfort Inn, Comfort Suites, Cambria Suites, Sleep Inn, Mainstay Suites, Quality Inn, Clarion, EconoLodge, Rodeway Inn, and Suburban Extended Stay brands throughout the US and more than 40 countries and territories.
Choice generates a majority of its revenue from royalty fees, which are based as a percentage of gross room revenue of its franchised hotels. With a focus on hotel franchising instead of ownership, the company benefits from the economies of scale in the franchising business.(Read more at Wikinvest )