Silver Spring, Maryland-based
Choice Hotels International Inc.
) recently inked a corporate contract with
) subsidiary Booking.com. This was done with the clear intent of
enhancing the company's online coverage, mainly in the
Now, the company's customers across 180 countries will be able
to deploy Choice Hotels' various services through the online
travel agency (OTA), Booking.com. This agreement ensures free
accessibility to 6,200 Choice Hotels worldwide.
Moreover, this contract will give a platform to Choice Hotels
to expand its business in the global market and form new
alliances with other OTAs. Post agreement, the company's
franchise properties are likely to witness a rise in its traffic
Choice Hotels' currently franchises 6,200 hotels with nearly
499,000 rooms across the U.S. and 30 other countries. During the
fourth quarter of 2012, Choice Hotels entered into 214 domestic
hotel franchise agreements. These consist of 174 refurbishment
projects and 40 new constructions. As of December 31, 2012, the
company's pipeline included 482 hotels, consisting of almost
38,969 rooms worldwide.
The company recently reported fourth-quarter 2012 adjusted
earnings from continuing operations of 45 cents, breezing past
the Zacks Consensus Estimate by 4 cents. The results missed the
year-ago earnings by a penny. Revenues increased 7% annually to
$178.3 million with the rise in the franchise revenues.
Given its significant expansion plan, international exposure,
strong brand recognition and better financial performance, we
believe the company is in a position to proceed on its high
growth trajectory, going forward.
Choice Hotels currently carries a Zacks Rank #2 (Buy). Another
Wyndham Worldwide Corporation's
) fourth quarter 2012 adjusted earnings surpassed the Zacks
Consensus Estimate and the prior-year levels. Wyndham currently
carries a Zacks Rank #2 (Buy).
Another company in the sector worth a mention is
Churchill Downs Inc.
), which carries a Zacks Rank #2 (Buy).
CHURCHILL DOWNS (CHDN): Free Stock Analysis
CHOICE HTL INTL (CHH): Free Stock Analysis
PRICELINE.COM (PCLN): Free Stock Analysis
WYNDHAM WORLDWD (WYN): Free Stock Analysis
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