Choice Hotels Made $61M On 2019 Kickbacks, Hoteliers Say

Law360 (June 15, 2020, 9:07 PM EDT) -- Dozens of Choice Hotel International Inc. franchisees accused the hotel chain in Pennsylvania federal court Friday of discriminating against Indian American and South Asian American hoteliers and of a kickback scheme that they say scored the company $61 million last year.

The franchisor behind brands like Comfort Inn, Quality Inn, EconoLodge and Rodeway Inn violated the Racketeer Influenced and Corrupt Practices Act by forcing franchisees to use overpriced vendors, who, in turn, pass tens of millions of dollars each year back to Choice, the suit alleges.

"Choice represents to its franchisees that it selects vendors with the goal of using the...

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