In order to extend its reach in North Dakota,
Choice Hotels International Inc.
) is set to launch a new hotel under its contemporary brand -
Cambria Suites - in West Fargo, N.D. in association with KAJ
Hospitality. The new four-storey, 103-room property, which
marks the brand's first franchisee property is slated for a 2014
North Dakota is one of the fastest growing states in the United
States, growing thrice the national rate. The city of West Fargo
is also witnessing economic growth as evident from the city-wide
growth rate of 72.9% last year. Commercial building permits
issued by the city increased 480% year over year.
The city's economic growth is expected to draw several companies,
thereby increasing the number of business travelers. This is
validated by an estimated investment of more than $17 million
toward the hotel and convention center projects in the greater
West Fargo area.
With improving economic conditions, the hotel industry seems to
be improving in the U.S. With lower supply in the U.S., revenue
per available room (RevPAR) is improving on strong demand and
continued higher pricing.
In order to benefit from such lucrative opportunities, Choice
Hotels is consistently making efforts to expand its presence in
the U.S. This Zacks Rank #3 (Hold) company has set a trend
in hotel design with its upscale Cambria Suites brand while
offering value proposition at the same time.
Since its launch in 2005, the brand has built a substantial
development pipeline. Currently, about 19 Cambria Suites branded
properties are operating domestically and there are several in
the pipeline. Among them, Cambria Suites Miami is scheduled to
open this fall.
Several other hoteliers including
Marriott International Inc.
Hyatt Hotels Corp.
) have a presence in North Dakota while another hotelier
Starwood Hotels & Resorts Worldwide Inc.
) will open a property in the state this September, thus giving a
tough competition to Choice Hotels.
CHOICE HTL INTL (CHH): Free Stock Analysis
HYATT HOTELS CP (H): Free Stock Analysis
STARWOOD HOTELS (HOT): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
To read this article on Zacks.com click here.