Back to top

Choice Hotels to Open Hotel in Austin, Expands Footprint

Read MoreHide Full Article

Choice Hotels International, Inc. (CHH - Free Report) has partnered with Brendan Gilyan of Mopac Hotel Development, LP, for developing new Cambria Hotel in Austin near the Domain. This 135-room upscale hotel is likely to open in 2021.

Notably, this latest move underscores the company’s efforts to expand its footprint and strengthen its upscale category. Driven expansion strategy, shares of Choice Hotels have gained 24.2% in a year against the industry’s 4.3% decline.

Strategic Expansion to Drive Growth

The Choice Hotels’ riveting growth potential is backed by consistent brand expansion. Also, its portfolio of well-segmented brands is getting stronger. Backed by continuous enhancement of the mid-scale brand, the WoodSpring acquisition, and transformation and advancement of the Comfort and Cambria brands, Choice Hotels is poised for growth in 2018.

Furthermore, Choice Hotels relies heavily on expansion in both domestic and international markets. Apart from constant franchise expansion, the company recently added 239 new extended-stay hotels in 35 states to its portfolio through the acquisition of Woodspring Suites.

In April, the company announced a strategic alliance with Sercotel — a leading hotel operator and franchisor based in Spain. This alliance will enable the extension of Choice Hotels’ global footprint in Spain and other markets, and create opportunities for additional hotel development across Europe and Latin America.

Zacks Rank & Stocks to Consider

Choice Hotels carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space, include Marriott International, Inc. (MAR - Free Report) , Red Lion Hotels Corporation (RLH - Free Report) and Wyndham Destinations, Inc. (WYND - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Marriott International reported better-than-expected earnings in the trailing four quarter, with an average of 14.7%.

Shares of Red Lion Hotels have gained 32% in the past six months.

Wyndham Destinations delivered positive earnings surprise in the trailing four quarter, with an average of 5.2%.

5 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.

Click to see them right now >>



More from Zacks Analyst Blog

You May Like