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Choice Hotels International CEO Steve Joyce on the impact of unemployment and gas prices on the hotel industry.
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Heard it through the brands comfort in quality any Connell -- has a bright outlook for 2012 and is forecast is pushing shares higher today but could higher gas prices.
Also concerns about Europe throw a wrench in the company's growth prospects let's talk to Steve Joyce he is Choice Hotels CEO in -- Fox Business exclusive.
Great to see is Steve thanks for coming at first of all what we talked about some that you were doing a little differently here everybody associates comfort inn -- he -- -- watch with saving money.
But this new Camry a brand that you have where -- -- competing with a high and folks tell us a little bit about that.
Wolves -- terrific product that we've introduced about 45 years ago we're growing -- rapidly.
And it needs it is not a luxury brand it's an upscale brand.
You know just to give us an idea would you be competing with -- -- them for example or.
A little bit with -- it's in the same court courtyard in Hilton garden category so it.
It's our venture though into upscale we are primarily a moderate term below.
But we think we've got a product that's a winner of the consumers -- it is -- number one trip advisor where we are and it's a great value as all the choice friends are.
Let's go to your your bread and butter so to speak your meat and potatoes and that is -- the lower -- and -- -- console launches of the world.
Which it in in a great part are the places where people are on the road and then they stop it's almost an -- in certain regards because.
People take these road trips and they stopped right off the freeway which is where many of these are.
How worried about she -- -- argue about higher gasoline prices and oil above -- 105 dollars a barrel we talked about it all day today.
-- the situation tensions between Iran and Israel and -- and it just looks like the trend is higher for those prices are you doing anything to hedge against something like -- -- well.
We've done a number things because we've had this before we had a two years ago and you know the interesting thing in today's environment.
On a typical trip where travelers may be doing 300 miles.
The actual price increase for that trip based on higher gas prices.
Doesn't drive the decision making typically unless you get into really.
Stratosphere tight costs so today we're watching carefully but we are not concerned what we were -- more quite frankly is employment.
And employment appears to be improving and so as a result.
While the business traveler came back last year and we benefited from that significantly.
This year we think it's gonna be the year of the leisure traveler.
We're hearing from our folks and they believe they have a god given right to take vacations and they are telling us they're gonna take -- what about lodging supply.
How is that now -- -- there's still room for growth.
Yeah actually that's that's the interest in -- we do business of both converting existing hotels.
And new construction and new construction has actually come to a halt.
The industry in our space actually contracted last year.
For the first time never I've been in business thirty years never happen.
And so as a result that's good for the existing hotel owners because business is getting better.
And there's there's fewer hotels out there and as result we're seeing better performance in those properties.
But there's still lots of value for consumers.
Particularly you know we represent -- 99% out there and they are interest in and value and they are looking hard at what they're spending.
But with our products given that we give them free breakfast free Wi-Fi.
A free parking scenario and then one -- -- a waffle.
I was worried whether you're going without -- -- That we love that -- for free guardian UK from the Bay Area family having grown up in in your career working at Mary -- and and here you are at at this company.
Tell you what is the number one thing that we all want when we walk into a hotel -- for me -- I don't wanna smell anything weird.
I want the sheets to feel right I don't care what level -- paying you bring your chance I superhero hybrid -- Us and and every hotel -- operator we'll tell you from roadway up to Ritz Carlton.
That if a guest walks in -- census someone -- been here there's going to be a problem regardless of the quality tell.
And so it's pretty simple it's all about cleanliness it's about a sense that -- -- the previous guests impact has been removed that it smells freshman that it feels clean and the you feel comfortable and safe in your room and it's got a heck of a waffle.
-- are we doing one hell lawful and really good that's their right to see it -- graduation gift Choice Hotels International CEO Steve -- good luck.
