Choice Hotels (CHH) Expands in Minneapolis With New Hotel
Choice Hotels International, Inc.’s CHH Cambria brand recently announced the opening of the Cambria Hotel Minneapolis Downtown. This marks the brand’s third property in the Twin Cities, joining the likes of Cambria Hotel Minneapolis Maple Grove and Cambria Hotel Bloomington Mall of America Minneapolis Airport.
Located at 1020 Hawthorne Avenue, the six-story (121-room) upscale hotel provides guests access to amenities like fitness centers, on-site dining and multi-function indoor-outdoor meeting spaces. The property is near several restaurants, breweries and riverfront attractions. It also offers convenient access to several corporations, including Ameriprise Financial, Ecolab, General Mills and Target.
With respect to the opening, Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "we know the Cambria Hotel Minneapolis Downtown, like the rest of our Minneapolis portfolio, will surprise and delight visitors with tailored amenities and curated design in an unbeatable location to help make the most of their time in the City of Lakes."
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 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 stated that it has almost 60 Cambria hotels open across cities such as Chicago, Los Angeles, New York, New Orleans, Portland and Phoenix. Also, it stated that it has additional 69 domestic properties in the pipeline.
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.
Price Performance
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Shares of Choice Hotels have declined 18.4% in the past year compared with the industry’s 8.7% fall. 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 with the recovery process, we believe that the emergence of the new COVID-19 variant is likely to create volatility in demand. The company is cautious, as rising infections may trigger disruptions again. Earnings estimates for 2022 have declined in the past 30 days, depicting analysts’ concern regarding the stock’s 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 Hyatt Hotels Corporation H, Crocs, Inc. CROX and Boyd Gaming Corporation BYD.
Hyatt currently has a Zacks Rank #2 (Buy). H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has increased 15.4% in the past year.
The Zacks Consensus Estimate for H’s current financial year sales and earnings per share (EPS) indicates a surge of 92.6% and 121.8%, respectively, from the year-ago period’s reported levels.
Crocs currently has a Zacks Rank #2. CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 43.6% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 51.5% and 23.7%, respectively, from the year-ago period’s levels.
Boyd Gaming carries a Zacks Rank #2. BYD has a long-term earnings growth rate of 12.8%. The stock have increased 0.6% in the past year.
The Zacks Consensus Estimate for BYD’s 2022 sales and EPS indicates growth of 4.5% and 12.7%, respectively, from the year-ago period’s reported levels.
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Crocs, Inc. (CROX) : Free Stock Analysis Report
