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Choice Hotels (CHH) On Expansion Spree, Opens Hotel In Michigan

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In a bid to expand its footprint across United States, Choice Hotels International, Inc. (CHH - Free Report) announced the opening of the Cambria Hotel Detroit-Shelby Township. This marks the second location for the Cambria Hotels brand in Michigan (after Cambria Hotel Traverse City) and the fifth new hotel opening since June 2020. Markedly, the new hotel will be joining the likes of properties in Greenville (South Carolina), Madeira Beach (Florida), Ocean City (Maryland) and Sonoma (California).

The four-story, 98-room upscale hotel provides guests access to amenities such as fitness centers, on-site dining and multi-function indoor-outdoor meeting spaces. It also provides convenient access to Michigan highway as well as office headquarters like Ford, General Motors, Chrysler and Quicken Loans.

Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "The opening of the Cambria Hotel Detroit-Shelby Township is a tremendous example of the hard work put in by all Cambria stakeholders to increase the brand's footprint around the U.S., even while facing a challenging travel and construction environment.”

Increased Focus on Expansion Initiatives

Choice Hotels relies heavily on expansion in domestic and international markets. Despite the coronavirus pandemic, the company awarded 81 domestic franchise agreements, out of which nearly three-fourth accounted for conversion hotels. Year to date through Sep 30, the company awarded nearly 230 new domestic franchise agreements. Notably, the company expects to ramp up expansion across major U.S. cities.

Alongside domestic growth, the company continues to expand its international footprint. The key international operating markets include Spain, Colombia, Panama, the Caribbean and Canada. Currently, the company has more than 50 hotels (open or in the pipeline), thereby suggesting strong growth in its coast-to-coast expansion.

In the past six months, shares of Choice Hotels have gained 30.3% compared with the industry’s 40.3% rally.

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 Acushnet Holdings Corp. (GOLF - Free Report) , YETI Holdings, Inc. (YETI - Free Report) and Vista Outdoor Inc. (VSTO - Free Report) , each sporting a Zacks Rank #1.

Acushnet has a trailing four-quarter earnings surprise of 12.9%, on average.

YETI Holdings has a three-five year earnings per share growth rate of 18.3%.

2021 earnings for Vista Outdoor are expected to surge 1,033.3%.

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