In order to expand its footprint in the domestic market, Choice Hotels International Inc. (CHH) has entered into a franchise agreement with FIRC Group, Inc. to open a property under its contemporary brand — Cambria Suites — in Asheville, North Carolina. This will be the brand’s second franchisee property in the city, which is slated to begin in 2015.
Asheville is a key commercial hub and draws a large number of business travelers. These factors justify Choice Hotels’ decision to bring its Cambria Suites brand to the city.
At the juncture of Battery Park and Page Avenue, the 141-room Cambria Suites branded hotel will feature various amenities including a restaurant, bar, fitness center and a 4,200 square feet meeting space.
FIRC Group, which has been operating in the Asheville market for nearly 25 years, has superior local market knowledge. We believe this alliance will further strengthen Cambria Suites’ position in the U.S.
The Zacks Rank #2 (Buy) company has set a trend in hotel design with its upscale boutique-style Cambria Suites brand. Since its launch in 2005, the brand has built a substantial development pipeline and is poised to benefit from the increase in demand for hotels in the U.S., going forward. Currently, 19 Cambria Suites branded properties are operating domestically.
With improving economic conditions, the hotel industry seems to be growing in the U.S. Revenue per available room is improving due to lower supply, strong demand and constant higher pricing in the U.S. In order to benefit from such lucrative opportunities, Choice Hotels is consistently trying to grow on the national front.
Some other hoteliers that are currently performing well include Marriott International Inc. (MAR), Orient-Express Hotels Ltd. (OEH) and Marriott Vacations Worldwide Corp. (VAC). All these companies carry a Zacks Rank #2.