Choice Hotels International, Inc. CHH has strengthened its presence in the upscale hotel market with three new Cambria Hotel openings and two groundbreakings this fall. These new locations in Imperial, CA; Pigeon Forge, TN and Spokane, WA, along with upcoming groundbreakings in O'Fallon, MO and Bend, OR, mark Cambria’s entry into new markets. This growth supports CHH's objective to bring the Cambria brand to more regions across the United States.
The company has significantly grown its upscale portfolio in recent years and is now a key player in this segment. In 2022, CHH acquired the Radisson Americas Hotels group and has focused on repositioning its brands. In its latest earnings report, the company highlighted strong pipeline growth, with upscale properties playing a major role in this success.
With the latest openings, Choice Hotels has expanded its Cambria brand by adding 18 new properties over the past two years, including locations in downtown Denver, Rehoboth Beach, DE and Niagara Falls, NY. The company’s growing pipeline now includes 62 hotels, with the highly anticipated Cambria New York Times Square, slated to open in 2025. Cambria’s presence continues to grow, offering select-service upscale hotel experiences that combine approachability with premium amenities and meeting the rising demand from travelers for hotels that reflect the essence of their destination.
Shares of the company rose 0.4% during yesterday’s trading hours.
Highlighting New Cambria Destinations
The Cambria Hotel El Centro–Imperial, which opened in September, marks the fifth Cambria property in California. It further expands the brand’s reach on the West Coast. This boutique hotel offers 108 rooms and 2,050 sq. ft. of meeting space. It is strategically located near Anza Borrego Desert State Park, Algodones Dunes and Imperial County Fairgrounds.
The Cambria Hotel Pigeon Forge, which opened in October, is the fourth Cambria hotel in Tennessee. It features 118 rooms and 738 sq. ft. of meeting space. The hotel provides guests with scenic views of Mt. LeConte and is situated close to popular attractions in the Smoky Mountains.
The Cambria Hotel Spokane Airport, the first Cambria property in Washington, opened in September. Located near Riverfront Park and Gonzaga University, the hotel offers 91 rooms and 1,020 sq. ft. of meeting space. It is conveniently close to the Spokane International Airport, catering to both business and leisure travelers.
Upcoming Cambria Hotel Developments
The company is set to open the Cambria Hotel Bend, located near Oregon State University. The hotel will feature 131 rooms and is expected to open in 2026. Demand for the hotel is driven by outdoor activities like hiking, fishing and skiing at the nearby Mt. Bachelor Ski Resort.
The company will also open the Cambria Hotel O'Fallon in Missouri, marking its first property in the state. This 118-room hotel is expected to open in 2026 and will cater to the local demand driven by industries such as manufacturing, automotive, aerospace and financial services.
Both properties reflect the company’s continued expansion into key markets, with each location tapping into regional growth drivers.
CHH’s Price Performance
Shares of this global hotel franchisor have gained 22.5% in the past six months compared with the Zacks Hotels and Motels industry’s 17.6% growth. The company has been benefiting from its focus on accelerated global hotel openings, expanding international market reach and increasing the size of the rewards program.
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In the third quarter of 2024, the company accelerated unit growth and expanded its global pipeline. As of Sept. 30, 2024, the company's Global pipeline reached 970 hotels (approximately 110,380 rooms). The majority, around 86%, of the pipeline is situated within the United States, with nearly 71% of the domestic pipeline dedicated to new construction projects.
Moreover, the company's versatile business model and accretive growth strategies ensure the support required to foster its growth trends.
CHH’s Zacks Rank & Other Key Picks
Choice Hotels currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Consumer Discretionary sector.
Carnival Corporation & plc CCL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
CCL has a trailing four-quarter earnings surprise of 318.1%, on average. The stock has surged 68.5% in the past year. The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates growth of 16.6% from year-ago levels.
Norwegian Cruise Line Holdings Ltd. NCLH currently carries a Zacks Rank #2. NCLH has a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 86% in the past year.
The Zacks Consensus Estimate for NCLH’s 2024 sales and earnings per share (EPS) indicates growth of 10.2% and 127.1%, respectively, from year-ago levels.
Royal Caribbean Cruises Ltd. RCL currently carries a Zacks Rank #2. RCL has a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 129.4% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates growth of 18.6% and 71.6%, respectively, from year-ago levels.
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