Choice Hotels inks 15-yr master franchise agreement with Suba Group of Hotels in India

Mumbai, July 4: Homegrown hospitality company Suba Group of Hotels on Monday said it has signed a 15-year master franchise agreement with Choice Hotels Asia Pacific effective from July 1.
Under the agreement, Suba Group of Hotels will be responsible for the expansion of Choice Hotels Asia Pacific expansion and development in India, according to a statement.
All franchised hotels will remain within the Choice Hotels network and continue to benefit from the extensive marketing, distribution and franchisee performance services currently in place.
“The master franchise agreement is in line with our vision of becoming the largest hotel chain in India. With this agreement, Suba Group of Hotels will add 2,200 Keys to our existing portfolio of 2,900 keys, taking our position to 5,100 keys in 57 destinations across India.
“This acquisition will enable us to service customers looking for budget as well as star properties that meet business and leisure requirements,” Suba Group of Hotels Managing Director Mansur Mehta said.
Suba Group of Hotels currently has 2,500 keys with a dominant presence in Maharashtra and Gujarat under upscale and budget brands, including Suba Hotels, GenX, RNB and The Click.
Choice Hotels Asia Pacific has brands like Clarion, Quality and Comfort in India, with 53 properties across India operating under the franchise model.
“At present, Choice Hotels Asia Pacific, which entered the Indian market 17 years ago with over 2,500 keys currently, has 4-5 properties in the pipeline, mainly in the northern part of the country,” Mehta told PTI.
Choice Hotels Asia-Pacific CEO Trent Fraser said, “We are 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, Fraser said, adding that “bringing 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”.
Talking about the future plans of the Suba Group of Hotels, Mehta said the company is planning to add 400 keys annually.
“With a strong presence in Gujarat and Maharashtra, we are now looking at pan-India presence, mainly in tier II and III markets, where we believe the industry will be witnessing the maximum growth,” he added. (PTI)