Choice Hotels (CHH) Expands in Georgia With New Hotel Opening
Choice Hotels International, Inc.’s CHH Cambria brand recently announced the addition of the Cambria Hotel Savannah Downtown Historic District in Georgia. This marks the brand’s first property in the region.
Located at Montgomery Street in Savannah, the six-story (101-room) upscale hotel provides guests access to fitness centers, on-site dining and multi-function indoor-outdoor meeting spaces. It also offers convenient access to leisure attractions such as the SCAD Museum, Forsyth Park and Savannah Civic Center. The property is close to several corporations like Georgia Ports Authority, Gulfstream, Hunter Army Airfield, St. Joseph's Hospital and Mitsubishi Hitachi Power System's North American headquarters.
Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "The opening of the Cambria Hotel Savannah Downtown Historic District represents another proud moment for the brand, as we continue to thoughtfully expand Cambria's modern, design-forward accommodations to new markets.”
The Cambria Hotels brand has been 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 RevPAR 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 anticipates ramped-up expansion across the United States with properties in Chicago, Los Angeles, New York, New Orleans, Portland and Phoenix. Also, it stated that it has additional 69 domestic properties in the pipeline.
Price Performance
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Coming to price performance, shares of Choice Hotels have declined 27% in the past year compared with the industry’s fall of 15.6%. The coronavirus crisis continues to cause disruptions to the global economy and the hospitality industry. Reduced travel and demand for hotel rooms have affected the company for some time. Although the company commenced the recovery process, we believe that the emergence of the new COVID-19 variant will likely create volatility in demand. The company is cautious, as rising infections may trigger disruptions again. Earnings estimates for 2023 have declined in the past 30 days, depicting analysts’ concern regarding the stock growth potential.
Zacks Rank & Stocks to Consider
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.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Hilton Grand Vacations Inc. HGV, RCI Hospitality Holdings, Inc. RICK and Hyatt Hotels Corporation H.
Hilton Grand Vacations currently has a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 3.7%, on average. The stock has declined 25.2% in the past year.
The Zacks Consensus Estimate for HGV’s 2023 sales and earnings per share (EPS) indicates a rise of 4.7% and 24.6%, respectively, from the year-ago period’s levels.
RCI Hospitality currently has a Zacks Rank #2 (Buy). RICK has a trailing four-quarter earnings surprise of 6.1%, on average. The stock has gained 27.3% in the past year.
The Zacks Consensus Estimate for RICK’s 2023 sales and EPS indicates growth of 12.7% and 10.6%, respectively, from the year-ago period’s reported levels.
Hyatt currently has a Zacks Rank #2. H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has declined 3.3% in the past year.
The Zacks Consensus Estimate for H’s 2023 sales and EPS indicates a surge of 7.4% and 136.6%, respectively, from the year-ago period’s reported levels.
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