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Choice Hotels (CHH) Expands in California With New Hotel
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Choice Hotels International, Inc. (CHH - Free Report) recently announced the opening of the Cambria Hotel Napa Valley Silverado Trail in California. This marks the second location for the Cambria Hotels brand in the state's wine region (after Cambria Hotel Sonoma Wine Country) and the brand’s fourth property in California.
Located at 320 Soscol Ave. in Napa, CA, the four-story, 90-room upscale hotel provides guests access to amenities like fitness centers, on-site dining and multi-function indoor-outdoor meeting spaces. It also offers convenient access to Napa County Airport. The property lies in close proximity to several leisure attractions as well as office headquarters like Allied Universal Security Systems and the Department of State Hospitals–Napa, Queen Valley Medical Center and Napa Valley College.
With reference to the opening, Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "Bordering the Napa River and surrounded by Northern California's stunning natural scenery, this hotel offers an unparalleled upscale experience, whether you're a wine or outdoor enthusiast — and we're thrilled to now offer two hotels in this majestic part of the country."
Focus on Expansion Initiatives
The Cambria Hotels brand has been a major growth driver for the company. During the second quarter, the number of domestic hotels in the upscale segment rose 24% year over year owing to an increase in room count of 11% for the Cambria Hotels brand and 28% for the Ascend Hotel Collection. The company stated that it has almost 60 Cambria hotels open across cities such as Chicago, Los Angeles, New York, New Orleans and Phoenix.
Going forward, the company anticipates ramped up expansion across major U.S. cities. Further, it stated that it has 71 Cambria hotels in the pipeline of which 18 are under construction. Some of the upcoming properties include the likes of Cambria Hotel Calabasas- Malibu, Cambria Hotel Louisville Downtown-Whiskey Row, Cambria Hotel Nashville Airport (joining the Cambria Hotel Nashville Downtown) and Cambria Hotel Austin Airport.
Price performance
Image Source: Zacks Investment Research
So far this year, shares of Choice Hotels have gained 12.4% compared with the industry’s 3.5% growth. Notably, the company is benefiting from continual expansion strategies through acquisitions and franchise agreements. Also, Choice Hotels’ Ascend portfolio has been doing solid business. Going forward, it is likely to benefit from continual expansion strategies, enhancement of the mid-scale brand as well as transformation and advancement of the Comfort brands. Earnings estimates for 2021 have moved up in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.
Image: Bigstock
Choice Hotels (CHH) Expands in California With New Hotel
Choice Hotels International, Inc. (CHH - Free Report) recently announced the opening of the Cambria Hotel Napa Valley Silverado Trail in California. This marks the second location for the Cambria Hotels brand in the state's wine region (after Cambria Hotel Sonoma Wine Country) and the brand’s fourth property in California.
Located at 320 Soscol Ave. in Napa, CA, the four-story, 90-room upscale hotel provides guests access to amenities like fitness centers, on-site dining and multi-function indoor-outdoor meeting spaces. It also offers convenient access to Napa County Airport. The property lies in close proximity to several leisure attractions as well as office headquarters like Allied Universal Security Systems and the Department of State Hospitals–Napa, Queen Valley Medical Center and Napa Valley College.
With reference to the opening, Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "Bordering the Napa River and surrounded by Northern California's stunning natural scenery, this hotel offers an unparalleled upscale experience, whether you're a wine or outdoor enthusiast — and we're thrilled to now offer two hotels in this majestic part of the country."
Focus on Expansion Initiatives
The Cambria Hotels brand has been a major growth driver for the company. During the second quarter, the number of domestic hotels in the upscale segment rose 24% year over year owing to an increase in room count of 11% for the Cambria Hotels brand and 28% for the Ascend Hotel Collection. The company stated that it has almost 60 Cambria hotels open across cities such as Chicago, Los Angeles, New York, New Orleans and Phoenix.
Going forward, the company anticipates ramped up expansion across major U.S. cities. Further, it stated that it has 71 Cambria hotels in the pipeline of which 18 are under construction. Some of the upcoming properties include the likes of Cambria Hotel Calabasas- Malibu, Cambria Hotel Louisville Downtown-Whiskey Row, Cambria Hotel Nashville Airport (joining the Cambria Hotel Nashville Downtown) and Cambria Hotel Austin Airport.
Price performance
Image Source: Zacks Investment Research
So far this year, shares of Choice Hotels have gained 12.4% compared with the industry’s 3.5% growth. Notably, the company is benefiting from continual expansion strategies through acquisitions and franchise agreements. Also, Choice Hotels’ Ascend portfolio has been doing solid business. Going forward, it is likely to benefit from continual expansion strategies, enhancement of the mid-scale brand as well as transformation and advancement of the Comfort brands. Earnings estimates for 2021 have moved up in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.
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.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Bluegreen Vacations Holding Corporation , Civeo Corporation (CVEO - Free Report) and Playa Hotels & Resorts N.V. (PLYA - Free Report) . Bluegreen Vacations sports a Zacks Rank #1, while Civeo and Playa Hotels & Resorts carry a Zacks Rank #2 (Buy).
Bluegreen Vacations' 2021 earnings are expected to surge 172%.
Civeo has a three-five year earnings per share growth rate of 10%.
Playa Hotels & Resorts has a trailing four-quarter earnings surprise of 18%, on average.