Yahoo Finance Choice Hotels (CHH) Boosts Ascend Portfolio With New Hotel
Choice Hotels International, Inc.’s CHH Ascend brand recently announced the addition of The Windsor Hotel in Georgia to its global line of hotels and resorts. The property will be owned and operated by Choice Hotels franchise - Edgewater Group LLC.
Nestled in the heart of downtown Americus, the five-story Victorian-style hotel will offer a range of experiences along with Ascend brand’s services and amenities. This includes fitness centers, on-site dining, a business center and a private veranda. It also offers convenient access to leisure attractions.
With respect to the addition, Janis Cannon, senior vice president, upscale brands, Choice Hotels, stated, "We're thrilled to debut the Windsor Hotel in Americus, Georgia for travelers looking to immerse themselves in the abundant local history. With more than 200 distinct locations nationwide, we look forward to welcoming even more guests at Ascend hotels, so they can experience our exceptional service and upscale offerings that enhance their one-of-a-kind stay.”
Increased Focus On Franchising Bode Well
Choice Hotels gains from economies of scale associated with the franchise business. Accordingly, higher fees from franchisees and transference of cost burden to franchises provide the company with operational advantages. Apart from royalty fees and procurement-services revenues, Choice Hotels also collect marketing and reservation system fees to provide support activities to the franchise system.
The company’s solid commitment toward franchisee profitability is driving incremental revenues. During the third quarter of 2022, the company awarded 123 domestic franchise agreements to legacy Choice brands compared with 89 franchising agreements reported in the prior-year quarter. As of Sep 30, 2022, the company’s total domestic pipeline of hotels awaiting conversion, under construction or approved for development reached 1,017 hotels (representing over 98,000 rooms), up 16% rise on a year-over-year basis. Year to date (through Sep 30, 2022), new applications for domestic franchise agreements increased 23% year over year. We believe that franchising will facilitate ROE expansion and earnings growth over the long term.
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In the past three months, shares of Choice Hotels have gained 3.3% against the industry’s 1.5% fall.
Zacks Rank & Key Picks
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.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Monarch Casino & Resort, Inc. MCRI, Hilton Grand Vacations Inc. HGV and Crocs, Inc. CROX.
Monarch Casino sports a Zacks Rank #1. MCRI has a trailing four-quarter earnings surprise of 9.1%, on average. The stock has gained 17.3% in the past year.
The Zacks Consensus Estimate for MCRI’s 2022 sales and earnings per share (EPS) indicates growth of 21.1% and 29.2%, respectively, from the year-ago period’s reported levels.
Hilton Grand Vacations sports a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 652.3%, on average. The stock has declined 18.6% in the past year.
The Zacks Consensus Estimate for HGV’s current financial year sales and EPS indicates a surge of 63.8% and 60.9%, respectively, from the year-ago period’s reported levels.
Crocs currently has a Zacks Rank #2 (Buy). CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 39.2% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 51.5% and 23.7%, respectively, from the year-ago period’s levels.
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Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
Monarch Casino & Resort, Inc. (MCRI) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report
