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Choice Hotels (CHH) Boosts Extended Stay Line-up With New Hotel

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Choice Hotels International, Inc. (CHH - Free Report) recently announced the expansion in southern California with the groundbreaking of an extended stay property, WoodSpring Suites Corona. The company anticipates opening the property in late 2023.

Developed by Gold Coast Premier Properties, the 122-room hotel provides guests access to amenities like fitness centers, guest laundry room and flexible workspaces. It also offers convenient access to several corporations, including 3M, Kaiser Permanente, Keller Williams, Merrick Engineering, Monster Beverage and US Foods.

Ron Burgett, senior vice president, franchise development, extended stay, Choice Hotels, stated, "The WoodSpring team has been an incredible collaborator as we've rapidly scaled our extended stay portfolio over the past few years, and we look forward to bringing the brand's affordable, smartly-designed accommodations to Southern California and beyond."

The company stated that Gold Coast Premier Properties has three WoodSpring Suites under active construction and agreements to bring four additional hotels to market in California, Connecticut, North Carolina, and Rhode Island. Also, Choice Hotels finalized an agreement with ServiceStar Capital to develop more than 50 WoodSpring Suites and nearly two dozen Everhome Suites hotels in Colorado, Arizona, Utah and Nevada. It stated plans to develop six additional MainStay Suites throughout California.

Expansion Efforts Bode Well

Choice Hotels’ riveting growth potential depends on the continual expansion of its brands. The company’s portfolio of well-segmented brands is getting stronger. Coming to the extended-stay portfolio, the company witnessed rapid expansion, reaching 468 domestic hotels as of Sep 30, 2022. This marked an increase of 45% on a year-over-year basis. During the third quarter of 2022, the company reported sequential increases in its business and group travel demand, driven by a rise in extended vacations, household relocations and temporary remote work assignments. The transition of leisure travel into mainstream business added to the positives.

Backed by solid consumer confidence and the attractiveness of Choice Hotels’ value proposition, the company anticipates boosting the revenue intensity of its system by adding more properties. Also, it emphasizes on strategic investments concerning brand portfolio, platform capabilities and franchisee tools to drive growth.

Zacks Investment Research
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In the past three months, shares of Choice Hotels have gained 4.5% compared with the industry’s 5.8% growth.

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 Monarch Casino & Resort, Inc. (MCRI - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Hyatt Hotels Corporation (H - Free Report) .

Monarch Casino sports a Zacks Rank #1. MCRI has a trailing four-quarter earnings surprise of 9.1%, on average. The stock has gained 20.5% in the past year.

The Zacks Consensus Estimate for MCRI’s 2022 sales and earnings per share (EPS) indicates growth of 21.1% and 29.2%, respectively, from the year-ago period’s reported levels.

Hilton Grand Vacations currently has a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 3.7%, on average. The stock has declined 6.2% in the past year.

The Zacks Consensus Estimate for HGV’s 2022 sales and EPS indicates a rise of 63.8% and 60.9%, respectively, from the year-ago period’s levels.

Hyatt currently has a Zacks Rank #2 (Buy). H has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has increased 20.9% in the past year.

The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates a surge of 91.9% and 121%, respectively, from the year-ago period’s reported levels.

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