April 1995 (Revised June 1996)
Case
HBS Case Collection

Choice Hotels International, 1995

By: Tarun Khanna and Israel Yellen Ganot

Format:Print
| Pages:22

Abstract

Illustrates the various ways in which Choice Hotels, the franchiser for seven mid-market hotel chains, can realize economies of scope across its multiple products. Also provides an opportunity to discuss the benefits and limitations of various organizational forms (particularly, the franchise form) as a means of realizing these economies of scope. In adapting to a maturing U.S. hotel market, Choice has to confront the realization that the competitive environment and its choice of organizational form impose restrictions on the ways in which it can realize these economies of scope.