Designed to Dream速
Sleep Inn速
Opportunity Is Knocking Are you ready for the new Sleep Inn?
BUILDING ON A
Strong Foundation DELIVERING A
Stylish New Design STRONG
Guest Demand
Unless otherwise noted, all figures and statistics in this document are from the Sleep Inn Franchise Disclosure Document, dated April 1, 2013, or from internal data of Choice Hotels International, Inc. This advertisement is not an offering. For New York: An offering can only be made by a prospectus filed first with the Department of Law in the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: Sleep Inn #F-1799. A copy of the Franchise Disclosure Document may be obtained through contacting Choice Hotels International速 at 1 Choice Hotels Circle, Suite 400, Rockville, MD 20850, franchise_sales@choicehotels.com.
Sleep Inn • Established in 1988, Sleep Inn is a leading brand in midscale lodging, enjoying one of the highest guest satisfaction ratings in the Choice Hotels® system. • Sleep Inn is a new construction brand that offers developers an exceptional value proposition due to its efficient building and operating costs. • With close to 400 properties open worldwide and almost 50 under development, Sleep Inn is growing. And with a newly launched prototype and major reimaging of the existing portfolio, the Sleep brand is on the move!
396
properties open worldwide.
49
properties under development worldwide.
System size has grown approximately 25% over the last 10 years, despite the economic downturn.
Guests Love the Sleep Inn Experience
Strong “Likelihood to Recommend” Scores for the Sleep Inn & Suites® brand* (Scores out of 10)
Sleep Inn guests consistently rate their stay experience near the top of the segment — which means they are not only likely to return, but they are also likely to recommend Sleep Inn properties to their friends, families and colleagues.
*Source: Medallia, Inc. The company’s areas of expertise are in market research and software engineering designed for the lodging industry. www.medallia.com.
Developers Love It Too Input from operators helped to ensure that the brand’s new design is not only a great guest experience, but one that performs beautifully as well. By squeezing efficiencies from every square foot, the smart design of Sleep Inn keeps development costs low and performance high.
Total 2012 Choice Contribution for Sleep Inn & Suites — delivering to owners’ top line.*
0% Failure Rate for Small Business Administration Loans**
*Source: Sleep Inn Franchise Disclosure Document, dated April 1, 2013, Item 19. For the 176 hotels that were include in the performance sample, 80 hotels or 45.5% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY. **Source: The Small Business Administration. Based on lendees of franchise brands from October 1, 2001 until September 30, 2011, compiled May 1, 2012. www.sba.gov.
Sleep Continues to Perform!*
*See Sleep Franchise Disclosure Document dated April 1, 2013, Item 19. In 2012, for the 176 hotels included in the performance sample, 72 hotels or 40.9% met or exceeded the average annual RevPAR amount; 78 hotels or 44.3% met or exceeded the average annual Occupancy amount; 64 hotels or 36.4% met or exceeded the average annual ADR amount; 74 hotels or 42.0% met or exceeded the average annual CRS Contribution amount. In 2011 for the 169 hotels included in the performance sample, 66 hotels or 39.1% met or exceeded the average annual RevPAR amount; 73 hotels or 43.2% met or exceeded the average annual Occupancy amount; 67 hotels or 39.6% met or exceeded the average annual ADR amount; 78 hotels or 46.2% met or exceeded the average annual CRS Contribution amount. INDIVIDUAL RESULTS MAY VARY.
Refresh Your Portfolio ®
The attractive Designed to Dream® prototype of Sleep® is designed to provide strong guest satisfaction and guest loyalty.
The design makes simply stylish accommodations accessible at an affordable price. Plus, its efficient layout and operational model creates real savings for the owner.
Now is the time to develop the fresh Sleep Inn design and set your property apart from dated midscale competition.
Designed to Dream Sweeping the Nation The brand’s new design is steadily rolling out, with more than 25% of the current system featuring the new look.
Designed to Dream Can Lead to Higher Rates Revenue Per Available Room (RevPAR) for Designed to Dream locations is $10 higher on average than properties featuring the old design.*
*See Sleep Franchise Disclosure Document, dated April 1, 2013, Item 19. For the 176 hotels included in this performance sample, 72 hotels or 40.9% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY.
Guests Love the New Look!
*Source: Medallia, Inc. As of December 31, 2012. The company’s areas of expertise are in market research and software engineering designed for the lodging industry. www.medallia.com. Maximum score is 10 in each category.
Sleep Continues to Excel! Segment Revenue Per Available Room (RevPAR) 2011–2012 Growth
Likelihood to Recommend**
+
+ See Sleep Inn Franchise Disclosure Document, dated April 1, 2013, Item 19. In 2012, for the 176 hotels included in the performance sample, 72 hotels or 42.0% met or exceeded the average annual RevPAR amount. In 2011, for the 169 hotels included in the performance sample, 66 hotels or 39.1% met or exceeded the average annual RevPAR amount. INDIVIDUAL RESULTS MAY VARY. *Source: Smith Travel Research, December 31, 2012. Smith Travel Research is one of the leading sources for hotel performance trends. www.strglobal.com **Source: Medallia, Inc., As of December 31, 2012. The maximum score in each category is 10. The company’s areas of expertise are in market research and software engineering designed for the lodging industry. www.medallia.com.
Sleep Inn — Designed to Dream
DESIGN FEATURES
HOTEL AMENITIES
• Flexible, innovative and contemporary design
• Breakfast area
• Warm exterior with unique Sleep Inn signature tower
• Oversized work areas and ergonomic chairs
• Simply stylish and inviting décor • Signature wall graphics • Residential experience • Fresh and bright color palette
• Comfortable bedding • Flat-panel televisions • Free high-speed Internet • Complimentary hot breakfast • Free In-room coffee • Fitness center • Optional pool and meeting space
Designed to Dream Exterior The building’s warm and unique exterior, combined with elegant interiors, creates an excellent opportunity to drive guest loyalty.
Designed to Dream Guestrooms The prototype guestroom offers residential state-of-the-art features, with a consistent contemporary design aimed at value-minded business and leisure travelers.
Designed to Dream Breakfast Guests will enjoy the Sleep Inn Morning Medley free hot breakfast.
Prototype Design: High Quality — Low Cost*
Great value Low cost to construct* Impressive revenue per available room**
1.5 acres
DEVELOPMENT SITE AREA
82 rooms ROOM COUNT
32,904 sq ft
BUILDING GROSS SQUARE FOOTAGE
*Source: Sleep Inn Franchise Disclosure Document, dated April 1, 2013, Item 7. Estimated initial investment of $42,153- $70,973 per room for Sleep Inn & Suites. **Source: Sleep Inn Franchise Disclosure Document, dated April 1, 2013, Item 19. For the one-year period ending December 31, 2012, the average revenue per available room for Sleep Inn & Suites properties was $42.44. For the 176 hotels that were included in the sample, 72 hotels or 40.9% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY.
Prototype Design: High Quality — Low Cost* By squeezing efficiencies out of every square foot, it may allow you to lower: • Maintenance & upkeep • Insurance costs • Property taxes • Development costs • Utility costs • And more…
*Source: Sleep Inn Franchise Disclosure Document, dated April 1, 2013, Item 7. Estimated initial investment of $42,153- $70,973 per room for Sleep Inn & Suites.
Prototype Design — Palettes 5 Color Options for Designed to Dream
NOW IS THE TIME TO BUILD!
$1,500 Incentive per Room
for the new Sleep Inn & Suites® Designed to Dream® prototype! For a limited time, qualified applicants can get a $1,500 per room INCENTIVE upon opening a newly constructed Sleep Inn & Suites Designed to Dream® prototype!* That’s more than $120,000 for our prototypical design Sleep Inn & Suites hotel!** With improving market conditions coupled with this incentive from Choice Hotels, now is a great time to develop a Sleep Inn hotel.
PLUS, SAVE $15,000 OFF THE AFFILIATION FEE for all qualified new construction prototypes!
*Terms and conditions apply; see Sleep Inn Franchise Disclosure Document dated April 1, 2013, Item 10 for qualifications and details. **Sleep Inn & Suites prototype design is an 82-guestroom, three-story hotel that needs at least 1.5 acres for the building and adequate parking areas (1 car per room). See Sleep Inn Franchise Disclosure Document dated April 1, 2013, Item 7.
The Power of Choice Hotels Choice Hotels is one of the world’s largest lodging franchisors, with over 70 years of experience and more than 6,700 properties open or under development in 30+ countries worldwide.
The Power of Global Reservation Systems
Global Distribution Systems (GDS)
ChoiceHotels.com
Mobile Channels
Customized Hotel Property Pages
Mobile & Global Positioning System (GPS)Â Presence
Strong Search Engine Presence
First Global Lodging Company iPhone App
American ExpressÂŽ, Carlson Wagonlit Travel, Amadeus, Sabre, and more
1.5+ Million Total Mobile App Downloads/Updates
HelmsBriscoe Partnership
100 Million Visitors in 2012
Travel Agency Preferred Status
Call Centers Dedicated Toll-Free Number Commission-Free Reservations Global Locations Call Forwarding Program
Online Travel Agents High Third-Party Website Visibility Cost-Effective Scale-Driven Agreement with Travelocity, Orbitz, Hotels.com, and more
The Power of Service & Support Choice Hotels offers top-notch service and support to drive performance.
Global Sales
choiceADVANTAGE
Field Support
Training
Dedicated Sales Teams
Web-Based Property Management System
Revenue, Market Share & Guest Satisfaction Goals Assistance
Expert Training Programs
Incremental Corporate, Leisure & Group Reservations
Remote Web Access 24/7
Direct Sales, Telesales & Sales Blitzes
Link to Central Reservations Systems
Targets Travel Planners
Rate & Inventory Management
Variable Key Account Rate Plans
24/7 Help Desk Support
Virtual Franchise Services Assistance Operations Resource Center
Procurement Services Qualified Vendors Program Simple Purchasing Process & Low Costs Procurement Manager Guidance Interior Design Assistance
Online ChoiceU.com Courses & Resources In-Person Workshops & Certification Programs
The Power of ChoiceHotels.com
•
ChoiceHotels.com continues to have high website conversion rates.
•
ChoiceHotels.com drives an ADR premium over reservations from other channels.*
•
Over 138 million guests visited ChoiceHotels.com last year.
ChoiceHotels.com, along with other Choice Hotels marketing channels, generated over
$2.8 billion in system-wide gross room revenue in 2012.**
*Source: See Sleep Inn Franchise Disclosure Document dated April 1, 2013. The average ADR for Sleep Inn hotels in 2012 was $77.05 while the average ADR through our Central Reservations System was $81.13. For the 176 hotels that were included in this performance sample, 60 hotels or 34.1% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY. **Source: See Sleep Inn Franchise Disclosure Document dated April 1, 2013. Figure represents the revenues delivered through the Choice Hotels Central Reservations System (CRS) as well as non-CRS marketing channels.
The Power of Loyalty – Choice Privileges®
Membership has nearly doubled since 2009. Worldwide Members (millions) • Over 18 Million Members Worldwide! • Comprehensive loyalty program of Choice Hotels that rewards guests for their business. • Designed to drive incremental business and improve guest loyalty.
The Power of Marketing Leading Reservations to Your Hotel at Every Step • Industry-leading multi-brand marketing campaigns that are designed to tackle changing consumer buying patterns and deliver incremental business. •
Over $208 million spent system-wide on programs and promotions in 2012 designed to increase brand awareness and drive hotel reservations.*
•
12 billion impressions delivered through advertising to ChoiceHotels.com in 2012.
*Source: Figure is based on accounting records of the System Fee in 2012 and has been compiled in a manner consistent with generally acceptable accounting principles. See Sleep Inn Franchise Disclosure Document dated April 1, 2013.
The Power of Sleep Inn Marketing The Sleep Inn marketing program consistently communicates the Dream Better HereÂŽ brand message
TV Advertising
SleepInn.com & Property eBrochures
Paid & Organic Search
Targeted Online & Mobile Advertising
Direct Email Marketing & Social Media
Outdoor Billboard Campaigns
SmartMarketing — an online toolkit of cost-effective professional materials and programs to help Sleep brand hotels execute local marketing.
In-Hotel Consumer Touchpoints
CALL YOUR
Director of Franchise Sales TODAY!
Choice Hotels Franchise Sales franchise_sales@choicehotels.com ChoiceHotelsFranchise.com
Š 2013 Choice Hotels International, Inc. All rights reserved. 12-936/02/13