La Quinta Inns & Suites Ends 2009 With Strong Growth, Exceeding Expectations
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La Quinta Inns & Suites Ends 2009 With Strong Growth, Exceeding Expectations
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Category: Worldwide - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-01-11
Brand Adds 81 New Hotels in 23 States, Executes Contracts Internationally and in the U.S. and Reports Significant Year over Year Guest Satisfaction Increases
La Quinta Inns & Suites, the fastest-growing select service brand in the hotel industry, opened 81 hotels in 23 states during 2009. La Quinta also executed 55 new franchise agreements, grew the brand internationally, continued to enjoy significant increases in guest satisfaction numbers and expects its strong pace of growth to continue and accelerate during 2010.
Here are highlights of La Quinta's 2009 growth:
1. La Quinta opened 81 hotels in 23 states and now has close to 800 properties in 46 states across the country. All hotels opened in 2009 were franchised locations with the exception of one corporate-owned, Chicago Downtown and almost all were new construction.
2. La Quinta executed 55 new franchise agreements, representing approximately 3,800 rooms. 62% of these new agreements were with multiple property owners who already owned a La Quinta hotel, indicating a strong confidence and satisfaction in the brand. La Quinta's pipeline remains robust and contains more than 200 new properties, 97% of which are new construction projects.
3. La Quinta continues to outperform in all areas of customer service reporting a 3.2% annual improvement in Satisfied Intent to Return versus the prior year (86.44% versus 83.99%); close to a 4% improvement in product quality (85.8% versus 82.7%); and a dramatic improvement in service quality (more than 89.5%).
4. According to Smith Travel Research, the foremost source of hotel performance trends, La Quinta experienced an aggressive 2.2% growth of market share through November and the weekly reports since have shown even more favorable results.
5. The brand continues to grow internationally - La Quinta executed 13 contracts in Panama, its first entry in that market, and three new contracts in Mexico, all in new, high-profile locations. La Quinta expects to make additional announcements regarding international expansion in the weeks ahead.
Rajiv Trivedi, La Quinta's Executive Vice President and Chief Development Officer said, "In a year that had challenges and uncertainty for the industry, La Quinta's results once again demonstrate that not only is the brand's growth accelerating - but we continue to raise the quality of our product and our guest experience." He concluded, "Through an unrelenting focus on people, product and performance, we continue to innovate, expand, penetrate new markets - and support our franchisees. We expect to continue to sharing more good news throughout 2010."
La Quinta's franchising program was launched in 2001 and since then has signed more than 600 franchise agreements. The brand is approaching 800 hotels, with 216 in the pipeline. It experienced rapid expansion throughout 2009, including new franchise agreements and developments in Panama and Mexico. Its rapid pace of growth makes La Quinta a top franchise choice and the industry leader in the select service segment. La Quinta was named the fastest-growing brand in the industry in 2008 and was selected as the top brand for franchisee ROI two years running (2007 and 2008).
"We are pleased with our 2009 performance, which met and exceeded expectations, even amidst challenging times," said Wayne Goldberg, President and Chief Executive Officer. He concluded, "We look forward to raising the bar even higher in 2010 and continuing to lead the industry as its premier select service brand."
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