Choice Hotels (CHH) CEO Says No Trepidation By Entering the Cuban Market

Choice Hotels (NYSE: CHH) CEO Steve Joyce spoke with FOX Business Network (FBN) about the possibility of entering the Cuban market. Joyce said, "We have no trepidation by entering the Cuban market. We think it’s going to be a huge opportunity." Joyce went on to say, "I've seen studies and we've looked at some different measurements of customer demand if Cuba were to open - it could be up to three and a half million customers."

Excerpts of the interview are below:

On whether he has a little bit of trepidation entering the Cuban market:

"We have no trepidation by entering the Cuban market. We think it’s going to be a huge opportunity. We have been locked out unlike the other European hotel companies…but the opportunity is significant. I’ve seen studies and we’ve looked at some different measurements of customer demand if Cuba were to open -it could be up to three and a half million customers. The Caribbean in total gets about four million U.S. customers, it could literally double the present."

On how quickly it would take to get the resources to build a quality hotel in Cuba:

"Well the law is going to have to change because the President by himself cannot unilaterally change what is the law of the land which is that U.S. companies are not allowed to operate in Cuba, so I know what will happen is myself as well as all my colleagues in the industry are going to start talking to potential investors and owners, talking to potential partners that are already there and investors that own some of the properties that are currently open and operating, but the demand is huge. Hopefully this will lead to an opportunity where not only U.S. companies can take part of it, but also U.S. customers who have a strong desire to travel to Cuba can start taking advantages of it as well, but before anybody starts shipping building materials down there, they’re going to have to know the U.S. government is supportive that there will be a change in the law that allows us to operate."

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