Choice Hotels International, Inc. CHH is leaving on stone unturned to expand footprint globally. With regard to this, the company has inked franchisee agreements with two famous developers to launch Cambria Hotel Austin Airport in Texas and Cambria Hotel Niagara Falls in New York. Cambria, being one of the top hotel brands expanding in North America, has nearly 80 hotels in its pipeline.
Notably, the 127-roomed Cambria Hotel Austin Airport will be located at 7800 E. Ben White Blvd. and developed by W2 SF Airport Hospitality Business LP. The new property is expected to open its doors in 2021. It will be in close proximity to the Austin Bergstrom International Airport, downtown Austin, Silicon Hills, Circuit of the Americas raceway and the Texas State Capitol.
The company is confident about the success of the properties. The Lone Star State already has six Cambria branded hotels and 10 more in its pipeline in Dallas, downtown Austin, The Domain in Austin, Irving and Waco.
The 120-roomed Cambria Hotel Niagara Falls will be situated at Rainbow Blvd. in downtown Niagara Falls and developed by Plati Niagara Inc. The property is slated to open in 2022. Cambria Hotel Niagara Falls will offer guests an access to the city’s popular attractions like Maid of the Mist boat tour.
Moreover, tourists can get closer to the Falls by descending into the Niagara Gorge at the Cave of the Winds. The property is just two blocks away from the world-famous Niagara Falls State Park that attracts 9 million guests annually. The Niagara Falls hotel will be its first in the upstate location that will join four Cambria branded properties in New York’s metropolitan areas.
Janis Cannon, senior vice president of upscale brands for Choice Hotels, said “As we close out a record year in which we opened 11 Cambria hotels — together representing 1,700 upscale rooms — these new franchise agreements are a sign that Choice will continue to bring the Cambria brand to even more top markets around the country."
Strategic Expansion to Drive Growth
Recently, the company strengthened its upscale brand presence with the opening of the Cambria Hotel Downtown Phoenix Convention Center in Phoenix Metropolitan area.
Markedly, Choice Hotels strengthened mid-scale presence with the launch of Clarion Pointe. Expansion of the brand is expected to be carried out through 21 Clarion Pointe franchise agreements.
Alongside domestic growth, Choice Hotels continues to expand international footprint. Its key international operating markets include Spain, Colombia, Panama, the Caribbean and Canada.
Notably, the Cambria brand has been doing solid business. In the first nine months of 2019, Cambria's RevPAR increased 0.4%. The company stated that in third-quarter 2019, Cambria's business travel revenues increased 17% year over year. Moreover, in the third quarter, the Cambria pipeline expanded to 79 hotels. There are more than 125 Cambria properties in the brand’s pipeline that are slated to open across the United States, with 50 currently operational.
Backed by solid expansion strategies and a strong brand presence, shares of Choice Hotels have gained 42.3% so far this year compared with the industry’s 34.1% rally. Choice Hotels, which shares space with Hilton Worldwide Holdings Inc. HLT, currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the same space include Civeo Corporation CVEO and Wyndham destinations, Inc. WYND, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Civeo reported better-than-expected earnings in three of the trailing four quarters, with the average being 42.5%.
Wyndham reported better-than-expected earnings surpassing in all of the trailing four quarters, with average being 7.2%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
Civeo Corporation (CVEO) : Free Stock Analysis Report
WYNDHAM DESTINATIONS, INC. (WYND) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research