Choice Hotels International, Inc. CHH 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, Hyatt Hotels Corporation H and Marriott Vacations Worldwide Corporation VAC, 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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
Hyatt Hotels Corporation (H) : Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
Marriot Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research