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Choice Hotels International, Inc. (CHH - Free Report) has announced its collaboration with Grubhub to introduce a food order and delivery service. The service will be offered under its loyalty program, Choice Privileges, to guests staying at about 500 participating Choice Hotels. The participating hotel brands include properties from Everhome Suites, Clarion Pointe, Comfort Inn, Mainstay Suites, Sleep Inn and more.
Benefits of the Collaborative Service Offering
Choice Hotels’ focus on enhancing its award-winning loyalty program reflects the launch of the new collaborative service, which will indeed widen the range of rewards and opportunities for guests during their travels.
During their stay, the guests at the properties under the participating hotel’s brands can avail Grubhub’s network of more than 365,000 restaurants and convenience offerings, through the Grubhub app. Moreover, they can even enjoy two free months of zero delivery fee service under Grubhub's loyalty program, Grubhub+, for orders of and more than $12.
This global hotel franchisor is optimistic about the latest initiative of boosting the loyalty program as it believes this will enhance opportunities for its loyalty members as well as enrichen the overall guest experience.
Increased Focus on Loyalty Program Bodes Well
Choice Hotels continues to focus on its loyalty program to drive growth. In July 2023, the company onboarded almost 600 Radisson Hotels Americas hotels onto its world-class reservation delivery engine. It also integrated two award-winning loyalty programs into the Choice Privileges program, enabling about 60 million loyalty members to earn and redeem points at more than 7,000 Choice-branded hotels across a diverse portfolio of brands. This initiative has paved the path toward an expanded loyalty program, extended co-brand credit card opportunity and increased footprint in the Americas region. The company remains optimistic for growth in the upcoming periods.
During the fourth quarter of 2022, the company (in collaboration with Wells Fargo and Mastercard) launched a new co-branded credit card to boost membership offerings. The initiative paves the path to deepen member engagement and loyalty through points redemption offerings.
The company remains optimistic in this regard and anticipates the arrangement to drive incremental revenues in its platform business segment. It expects the program to drive adjusted EBITDA by more than $5 million (in 2023) and $10 million (in 2024), respectively.
Image Source: Zacks Investment Research
Shares of CHH has gained 5.2% in the past three months, outperforming the Zacks Hotels and Motels industry’s 2.4% growth.
Zacks Rank
Choice Hotels currently carries a Zacks Rank #3 (Hold).
STRA has a trailing four-quarter earnings surprise of 12.1%, on average. The stock has gained 19% in the past year. The Zacks Consensus Estimate for STRA’s 2023 sales and earnings per share (EPS) indicates growth of 4.9% and 27.9%, respectively, from the year-ago period’s levels.
Live Nation currently flaunts a Zacks Rank of 1. LYV has a trailing four-quarter earnings surprise of 34.6%, on average. The stock has gained 2.7% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS suggests rises of 21% and 57.8%, respectively, from the year-ago period’s levels.
Guess presently sports a Zacks Rank of 1. GES has a trailing four-quarter earnings surprise of 43.4%, on average. Shares of the company have increased 35.3% in the past year.
The Zacks Consensus Estimate for GES’ fiscal 2023 sales and EPS implies improvements of 3.7% and 9.9%, respectively, from the year-ago period’s levels.
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Choice Hotels (CHH) Partners Grubhub, Boosts Loyalty Offerings
Choice Hotels International, Inc. (CHH - Free Report) has announced its collaboration with Grubhub to introduce a food order and delivery service. The service will be offered under its loyalty program, Choice Privileges, to guests staying at about 500 participating Choice Hotels. The participating hotel brands include properties from Everhome Suites, Clarion Pointe, Comfort Inn, Mainstay Suites, Sleep Inn and more.
Benefits of the Collaborative Service Offering
Choice Hotels’ focus on enhancing its award-winning loyalty program reflects the launch of the new collaborative service, which will indeed widen the range of rewards and opportunities for guests during their travels.
During their stay, the guests at the properties under the participating hotel’s brands can avail Grubhub’s network of more than 365,000 restaurants and convenience offerings, through the Grubhub app. Moreover, they can even enjoy two free months of zero delivery fee service under Grubhub's loyalty program, Grubhub+, for orders of and more than $12.
This global hotel franchisor is optimistic about the latest initiative of boosting the loyalty program as it believes this will enhance opportunities for its loyalty members as well as enrichen the overall guest experience.
Increased Focus on Loyalty Program Bodes Well
Choice Hotels continues to focus on its loyalty program to drive growth. In July 2023, the company onboarded almost 600 Radisson Hotels Americas hotels onto its world-class reservation delivery engine. It also integrated two award-winning loyalty programs into the Choice Privileges program, enabling about 60 million loyalty members to earn and redeem points at more than 7,000 Choice-branded hotels across a diverse portfolio of brands. This initiative has paved the path toward an expanded loyalty program, extended co-brand credit card opportunity and increased footprint in the Americas region. The company remains optimistic for growth in the upcoming periods.
During the fourth quarter of 2022, the company (in collaboration with Wells Fargo and Mastercard) launched a new co-branded credit card to boost membership offerings. The initiative paves the path to deepen member engagement and loyalty through points redemption offerings.
The company remains optimistic in this regard and anticipates the arrangement to drive incremental revenues in its platform business segment. It expects the program to drive adjusted EBITDA by more than $5 million (in 2023) and $10 million (in 2024), respectively.
Image Source: Zacks Investment Research
Shares of CHH has gained 5.2% in the past three months, outperforming the Zacks Hotels and Motels industry’s 2.4% growth.
Zacks Rank
Choice Hotels currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks from the Consumer Discretionary sector are Strategic Education, Inc. (STRA - Free Report) , Live Nation Entertainment, Inc. (LYV - Free Report) and Guess?, Inc. (GES - Free Report) .
Strategic Education presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
STRA has a trailing four-quarter earnings surprise of 12.1%, on average. The stock has gained 19% in the past year. The Zacks Consensus Estimate for STRA’s 2023 sales and earnings per share (EPS) indicates growth of 4.9% and 27.9%, respectively, from the year-ago period’s levels.
Live Nation currently flaunts a Zacks Rank of 1. LYV has a trailing four-quarter earnings surprise of 34.6%, on average. The stock has gained 2.7% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS suggests rises of 21% and 57.8%, respectively, from the year-ago period’s levels.
Guess presently sports a Zacks Rank of 1. GES has a trailing four-quarter earnings surprise of 43.4%, on average. Shares of the company have increased 35.3% in the past year.
The Zacks Consensus Estimate for GES’ fiscal 2023 sales and EPS implies improvements of 3.7% and 9.9%, respectively, from the year-ago period’s levels.