Choice Hotels (CHH) Expands Domestic Footprint With New Hotels
Choice Hotels International, Inc CHH continues to expand its Extended-stay brand portfolio. The company recently announced the opening of the sixth WoodSpring Suites hotel, signifying the brand's growing momentum and success in the domestic market.
The company’s recent openings includes WoodSpring Suites Rochester Greece, Austin Central, Roanoke, Libertyville, West Palm Beach and Bellflower — Los Angeles, accounting 732 new economy extended stay rooms and 1,414 total new rooms for the brand since the beginning of 2023.
Emphasis on Expansion
Choice Hotels relies heavily on expansion in domestic and international markets. In first-quarter 2023, the WoodSpring Suites pipeline grew to 311 domestic properties, marking a significant 49% increase compared with the previous year’s levels. The brand expects to open more hotels this year compared with the prior-year quarter’s levels, indicating a positive outlook for the brand's growth and expansion.
As of March 31, the company's domestic and extended-stay domestic pipeline reached 925 hotels (approximately 89,000 rooms) and 475 hotels, up 11% and 28% on a year-over-year basis, respectively.
Price Performance
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In the past three months, shares of Choice Hotels have declined 9.1% compared with the industry’s 8.3% fall. The downside was caused by inflationary pressures and softness in the economy chain scale. Earnings estimates for 2023 have moved north to $6.03 per share from $5.88 per share in the past 30 days. This depicts analysts' optimism over the company’s growth prospects. However, lending challenges and supply-chain constrains are a concern.
Zacks Rank & Other Key Picks
Choice Hotels currently sports a Zacks Rank #3 (Hold).
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