Choice Hotels International, Inc.’s ( CHH Quick Quote CHH - Free Report) Ascend brand recently announced the addition of Haywood Park Hotel, Elevate Hotel at Sierra Blanca Ruidoso, The Inn at Leonardtown and The Leo Collection Detroit to its global line of hotels and resorts. Located in North Carolina, New Mexico, Maryland and Michigan, the hotels will offer a range of outdoor experiences along with Ascend brand’s services and amenities. The Haywood Park Hotel offers a variety of amenities and is in proximity to various food options, art, theaters, breweries, live music and nightlife. The Elevate Hotel at Sierra Blanca Ruidoso provides guests with Bath & Body Works toiletries, plush bedding as well as indoor pool and spa. The Inn at Leonardtown is located near popular attractions — the Newtowne Neck State Park, Patuxent River Naval Air Museum and Calvert Marine Museum. Meanwhile, The Leo Collection Detroit offers features such as complimentary continental breakfast, a fitness center, pet-friendly rooms, an exterior patio and a private event space. Also, it provides access to national corporate headquarters, including Ford, General Motors, Chrysler and Quicken Loans. With respect to the addition, Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "As guests continue to return to travel, they desire immersive, authentic and cultural experiences in both new and familiar destinations. We're thrilled to debut these hotels for travelers seeking outdoor adventure.” Focus on Ascend Brand Bodes Well
Choice Hotels’ Ascend portfolio has been doing solid business. Ascend has significantly outperformed the upscale soft brands (as well as the segment on a whole) in terms of year-over-year RevPAR change. During second-quarter 2021, the brand outperformed the upscale segment with a RevPAR change of more than 26 percentage points from 2019 levels. The brand has been well received on account of smart conversion opportunities. During the quarter, the brand’s domestic room count increased 28% year over year and expanded to nearly 390 hotels across the globe.
Going forward, the company is optimistic with respect to its expansion strategies through acquisitions and franchise agreements. Also, strategic agreement with Penn National to offer reciprocal earning and redemption benefits to members of Choice Privileges and Penn's mychoice loyalty program, is likely to benefit the company in the upcoming periods. So far this year, shares of the company have gained 19.3% so far this year compared with the industry’s 11.1% growth. Image Source: Zacks Investment Research 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 Boyd Gaming Corporation ( BYD Quick Quote BYD - Free Report) , Vista Outdoor Inc. ( VSTO Quick Quote VSTO - Free Report) and Bluegreen Vacations Holding Corporation ( BVH Quick Quote BVH - Free Report) , each sporting a Zacks Rank #1. Boyd Gaming has a three-five year earnings per share growth rate of 40.8%. Vista Outdoor has a trailing four-quarter earnings surprise of 70.1%, on average. 2021 earnings for Bluegreen Vacations are expected to surge 172%.