Choice Hotels International, Inc. (CHH - Free Report) continues to expand through franchise agreements. The Ascend Hotel Collection franchised by the company recently announced that 2019 was a record-breaking development year. The brand executed 96 total contracts and added 76 new properties to its portfolio of resort, historic and boutique hotels.
This milestone fortifies Ascend Hotel’s status as the industry’s largest upscale soft brand. Currently, the brand has 315 hotels worldwide. It also expects to launch properties in Brooklyn, New York, Orlando, Florida, Europe, Australia, the Caribbean among other places in 2020. The "soft brand" concept was launched by Choice Hotels 12 years ago with the introduction of the Ascend Hotel Collection.
Notably, the brand’s strong value, industry-leading technologies and operational independence will continue attracting guests. It has also launched properties in top destinations namely Infinity Hotel SF (San Francisco, California), Beaufort Hotel (Beaufort, North Carolina), The Marquee (New Orleans, Louisiana), The Ridgeline Hotel at Yellowstone (Gardiner, Montana), V8 Hotel Koln @MOTORWORLD and more.
Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated "We look forward to building on the Ascend brand's success in the new decade as we welcome more one-of-a-kind properties to our collection and invite experience-hungry travelers to get a taste of what Ascend has to offer."
Expansion to Drive Growth
Choice Hotels relies heavily on expansion in domestic as well as international markets. In the third quarter, the hotelier awarded 100 total franchise agreements. Alongside domestic growth, the company continues to expand footprint in new countries. Key international operating markets include Spain, Colombia, Panama, the Caribbean and Canada.
On Dec 23, 2019 the company expanded its Ascend Hotel Collection brand presence with the addition of The Esquire Hotel to its portfolio.
Markedly, Choice Hotels strengthened mid-scale presence, with the launch of Clarion Pointe. Expansion of the brand is expected to be carried out through 21 Clarion Pointe franchise agreements.
Choice Hotels, which shares space with Hilton Worldwide Holdings Inc. (HLT - Free Report) , Hyatt Hotels Corporation (H - Free Report) and Marriott Vacations Worldwide Corporation (VAC - Free Report) , operates in an intensely competitive market. We believe that the company’s efforts to drive unit growth will help counter stiff competition.
Backed by solid expansion strategies and a strong brand presence, shares of Choice Hotels have gained 31.4% in the past year compared with the industry’s 27.6% growth.
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.
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