Choice Hotels: Supplies and Demand - 'ZIFFPAGE TITLE'
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Choice Hotels International Base Case">

Choice Hotels International Base Case

Headquarters: 10750 Columbia Pike, Silver Spring, MD 20901 Phone: (301) 754-3946
Business: Licensor of hotel franchises, under brands such as Comfort Inn, Quality, Clarion and Sleep Inn.
Chief Information Officer: Gary Thomson
Financials in 2004: Revenue of $428.8 million; profit of $74.3 million.
Challenge: Convince hotel franchise owners to purchase more of their supplies through a procurement portal, ChoiceBuys.com, operated by the parent company. Improve the usability of the procurement portal to make it more attractive to franchisees that are free to make independent purchasing decisions.

Baseline Goals

• Grow the number of participating buyers in ChoiceBuys.com by 30%, from 1,003 at end of 2004.
  
• Increase the number of buyers who make more than 10 purchases per year through the system to 30% of its users, from 14% in 2004.
  
• Maintain the growth of the Partner Services Division, which increased its revenue from $6.4 million in 1998, the year before ChoiceBuys.com was introduced, to about $14 million in 2004 (excluding the effect of a one-time revenue sharing arrangement).
  

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