Deutsche Bank Reports INN and CHH End Franchise Agreement

Deustche Bank has reported on the terminated franchise agreement between Summit Hotels INN and Choice Hotels CHH. According to the report, "Summit and Choice Hotels (CHH) terminated franchise agreements on 11 hotels, effective March 23, drawing to a close their relationship, at least for the time being. Summit is actively negotiating with other franchisors and expects to re-flag all 11 hotels to new brands over the next few weeks. Four of the impacted hotels were Cambria Suites. The remaining seven were Comfort Inns or Comfort Suites. The amounts of the termination fees and liquidated damages payable to Choice are in dispute and will be arbitrated; the ultimate outcome should be immaterial to Summit financially, in our view." INN is rated Buy and has a $12 PT. INN closed at $9.87 yesterday.