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Choice Hotels (CHH) Expands Domestic Footprint With New Hotels
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Choice Hotels International, Inc (CHH - Free Report) continues to expand its Extended-stay brand portfolio. The company recently announced the opening of the sixth WoodSpring Suites hotel, signifying the brand's growing momentum and success in the domestic market.
The company’s recent openings includes WoodSpring Suites Rochester Greece, Austin Central, Roanoke, Libertyville, West Palm Beach and Bellflower — Los Angeles, accounting 732 new economy extended stay rooms and 1,414 total new rooms for the brand since the beginning of 2023.
Emphasis on Expansion
Choice Hotels relies heavily on expansion in domestic and international markets. In first-quarter 2023, the WoodSpring Suites pipeline grew to 311 domestic properties, marking a significant 49% increase compared with the previous year’s levels. The brand expects to open more hotels this year compared with the prior-year quarter’s levels, indicating a positive outlook for the brand's growth and expansion.
As of March 31, the company's domestic and extended-stay domestic pipeline reached 925 hotels (approximately 89,000 rooms) and 475 hotels, up 11% and 28% on a year-over-year basis, respectively.
Price Performance
Image Source: Zacks Investment Research
In the past three months, shares of Choice Hotels have declined 9.1% compared with the industry’s 8.3% fall. The downside was caused by inflationary pressures and softness in the economy chain scale. Earnings estimates for 2023 have moved north to $6.03 per share from $5.88 per share in the past 30 days. This depicts analysts' optimism over the company’s growth prospects. However, lending challenges and supply-chain constrains are a concern.
Zacks Rank & Other Key Picks
Choice Hotels currently sports a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 48.5% and 161%, respectively, from the year-ago period’s levels.
Trip.com Group Limited (TCOM - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 153.1%, on average. Shares of TCOM have increased 48.3% in the past year.
The Zacks Consensus Estimate for TCOM’s 2023 sales and EPS indicates a rise of 76.9% and 334.5%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 18.8%, on average. Shares of SKX have increased 22.2% in the past year.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates a rise of 7.8% and 31.9%, respectively, from the year-ago period’s levels.
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Choice Hotels (CHH) Expands Domestic Footprint With New Hotels
Choice Hotels International, Inc (CHH - Free Report) continues to expand its Extended-stay brand portfolio. The company recently announced the opening of the sixth WoodSpring Suites hotel, signifying the brand's growing momentum and success in the domestic market.
The company’s recent openings includes WoodSpring Suites Rochester Greece, Austin Central, Roanoke, Libertyville, West Palm Beach and Bellflower — Los Angeles, accounting 732 new economy extended stay rooms and 1,414 total new rooms for the brand since the beginning of 2023.
Emphasis on Expansion
Choice Hotels relies heavily on expansion in domestic and international markets. In first-quarter 2023, the WoodSpring Suites pipeline grew to 311 domestic properties, marking a significant 49% increase compared with the previous year’s levels. The brand expects to open more hotels this year compared with the prior-year quarter’s levels, indicating a positive outlook for the brand's growth and expansion.
As of March 31, the company's domestic and extended-stay domestic pipeline reached 925 hotels (approximately 89,000 rooms) and 475 hotels, up 11% and 28% on a year-over-year basis, respectively.
Price Performance
Image Source: Zacks Investment Research
In the past three months, shares of Choice Hotels have declined 9.1% compared with the industry’s 8.3% fall. The downside was caused by inflationary pressures and softness in the economy chain scale. Earnings estimates for 2023 have moved north to $6.03 per share from $5.88 per share in the past 30 days. This depicts analysts' optimism over the company’s growth prospects. However, lending challenges and supply-chain constrains are a concern.
Zacks Rank & Other Key Picks
Choice Hotels currently sports a Zacks Rank #3 (Hold).
Some top-ranked stocks from the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. (RCL - Free Report) carries a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have gained 47.7 in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 48.5% and 161%, respectively, from the year-ago period’s levels.
Trip.com Group Limited (TCOM - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 153.1%, on average. Shares of TCOM have increased 48.3% in the past year.
The Zacks Consensus Estimate for TCOM’s 2023 sales and EPS indicates a rise of 76.9% and 334.5%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 18.8%, on average. Shares of SKX have increased 22.2% in the past year.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates a rise of 7.8% and 31.9%, respectively, from the year-ago period’s levels.