Choice Hotels (CHH) Boosts New England Presence With New Hotel
Choice Hotels International, Inc.’s CHH Cambria brand recently announced the opening of the Cambria Hotel New Haven University Area in Connecticut. This marks the brand’s fifth property in New England, joining the likes of the Cambria Hotel Boston Somerville, Cambria Hotel Portland Downtown Old Port, Cambria Hotel Manchester South Windsor and Cambria Hotel Boston, Downtown-South Boston.
Located at Dwight Street, the six-story (130-room) upscale hotel provides guests access to amenities like fitness centers, on-site dining and multi-function indoor-outdoor meeting spaces. The property is close to several shopping, dining, and entertainment attractions as well as museums. It also offers convenient access to several corporations, including Pfizer Research and AstraZeneca.
With respect to the opening, Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "At Cambria Hotels, our expansion has always focused on growth in markets with strong business and leisure demand. As the cultural hub of Connecticut, New Haven is the ideal spot to premiere the Constitution State's latest Cambria hotel. We are excited to welcome New England travelers to yet another property in our rapidly growing portfolio."
Focus on Cambria Brand
The Cambria Hotels brand is a major growth driver for the company. Cambria has significantly outperformed the upscale soft brands (and the segment on the whole) in terms of year-over-year revenue per available room change. The brand has been well received on account of smart-conversion opportunities. During third-quarter 2022, the company’s domestic hotel openings increased 5.2% year over year. The company stated that it has almost 60 Cambria hotels open across cities such as Chicago, Los Angeles, Washington, D.C., Nashville and Phoenix.
Backed by solid consumer confidence and the attractiveness of Choice Hotels’ value proposition, the company anticipates boosting the revenue intensity of its system by adding more properties. The company anticipates ramped-up expansion across major U.S. cities. Further, CHH stated that it has additional 69 domestic properties in the pipeline.
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Shares of Choice Hotels have lost 27.4% in the past year compared with the industry’s 12.1% decline.
Zacks Rank & Key Picks
Choice Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Reservoir currently sports a Zacks Rank #1. RSVR has a long-term earnings growth rate of 17.5%. Shares of RSVR have declined 20.4% in the past year.
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