Choice Hotels International, Inc.’s ( CHH Quick Quote CHH - Free Report) Cambria brand recently announced the addition of the Cambria Hotel Manchester South Windsor in Connecticut. This marks the brand’s second property in the region, joining the Cambria Hotel New Haven University Area. Located at South Windsor, the four-story (108-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 several shops, restaurants and leisure attractions such as Front Street District, Bushnell Park and Promenade Shops. The property is in proximity to several corporations like Broadridge Financial Solutions, Pratt & Whitney, United Technologies, Coca Cola Beverages Northeast, Oxford Performance Materials, Electro-Methods, Inc. and TicketNetwork. With reference to the opening, Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "We're pleased to add another exciting option to our upscale hotel repertoire, so we can help guests stay at their best on the road--whether looking to escape for an outdoor adventure, soak in the sun by the beach or experience all the action in the heart of downtown." The Cambria Hotels brand has been 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 second-quarter 2022, the company broke ground for 21 Cambria projects. The company anticipates ramped-up expansion across the United States with properties in Austin, TX, Portland, ME, and Orlando, FL. Price Performance Image Source: Zacks Investment Research
Shares of Choice Hotels have gained 4.7% in the past three months compared with the
industry’s 2.3% growth. The company is benefiting from expansion strategies through acquisitions and franchise agreements. Also, focus on the loyalty program bodes well. It is likely to benefit from continual expansion strategies, enhancement of the mid-scale brand and transformation and advancement of the Comfort brands. Earnings estimates for 2022 have moved up in the past 30 days, depicting analysts’ optimism 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 Marriott Vacations Worldwide Corporation ( VAC Quick Quote VAC - Free Report) , InterContinental Hotels Group PLC ( IHG Quick Quote IHG - Free Report) and Hyatt Hotels Corporation ( H Quick Quote H - Free Report) . Marriott Vacations sports a Zacks Rank #1. VAC has a trailing four-quarter earnings surprise of 13.9%, on average. The stock has declined 17.9% in the past year. The Zacks Consensus Estimate for VAC’s current financial year sales and earnings per share (EPS) indicates an increase of 19.7% and 131.4%, respectively, from the year-ago period’s reported levels. InterContinental Hotels sports a Zacks Rank #1. IHG has a long-term earnings growth of 32.7%. The stock has declined 25.6% in the past year. The Zacks Consensus Estimate for IHG’s current financial year sales and EPS indicates growth of 21.7% and 88.4%, respectively, from the year-ago period’s reported levels. Hyatt carries a Zacks Rank #2 (Buy). H has a trailing four-quarter earnings surprise of 798.8%, on average. The stock has declined 0.2% in the past year. The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates growth of 89.1% and 113%, respectively, from the year-ago period’s reported levels.