Choice Hotels (CHH) strengthens its Ascend portfolio with new hotels

Choice Hotels International, Inc.The CHH Ascend brand from . recently announced the addition of The Harborview in Port Washington, The Crossroads Hotel – Newburgh in Newburgh and 17 West Hotel in Tulsato to its global lineup of hotels and resorts. Located in Wisconsin, New York and Oklahoma, the hotels will offer a range of outdoor experiences along with Ascend-branded services and amenities.

Nestled along the shores of Lake Michigan, the 93-room Harborview Hotel features an on-site restaurant and bar and is near popular attractions like the Whistling Straits golf course and fishing spots. The Crossroads Hotel – Newburgh offers a variety of amenities and is close to outdoor attractions such as Hudson Highlands State Park, Storm King State Park, Woodbury Common Premium Outlets and Legoland . 17 West Hotel offers spacious rooms and an on-site restaurant. Additionally, the property is close to the BOK Center, Tulsa Performing Arts Center, Oklahoma Jazz Hall of Fame, and the Blue Dome District.

Janis Cannon, Senior Vice President of Premium Brands, Choice Hotels, said, “Consumer travel preferences have evolved. Rather than setting aside annual vacation days for a single holiday, travelers are increasingly taking advantage of opportunities to extend their weekends and enjoy the flexibility of working remotely. With more than 200 distinct locations nationwide, Ascend Hotels offer ideal accommodations for any getaway.

Focusing on the Ascend brand bodes well

With more than 315 hotels worldwide, Choice Hotels’ Ascend portfolio is doing strong business. During the first quarter of 2022, the brand’s RevPAR increased 37.9% year-over-year to $64.66. The average daily rate index increased by 19.4% year over year. The brand has been well received due to the smart conversion opportunities. The company has announced plans to open hotels in Orlando, Florida and Las Vegas, NV.

The company is optimistic about its expansion strategies through acquisitions and franchise agreements. In addition, a strategic agreement with Penn National to provide reciprocal earning and redemption benefits to members of Choice Privileges and Penn’s mychoice loyalty program is expected to benefit the company in future periods.

Price performance

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Over the past year, shares of Choice Hotels have gained 5.6% over industrydown 4.6%. The company is benefiting from sequential increases in its business and group travel demand, driven by an increase in extended vacations, household moves and temporary remote work assignments. The shift from leisure travel to mainstream business added to the positives. Also, the focus on the loyalty program bodes well. Going forward, the company is focusing on expansion strategies, mid-range brand enhancements, and transformation and advancement of Comfort brands to drive growth in the coming periods. Earnings estimates for 2022 have risen over the past 30 days, illustrating analysts’ optimism about the stock’s growth potential.

Zacks ranking and other key picks

Choice Hotels currently carries a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Few Other Top-Ranked Stocks in the Zacks Consumer Discretionary sector are Bluegreen Vacations Holding Corporation BVH, Funko Inc. FNKO and Civeo Corporation CVEO.

Bluegreen Vacations sports a No. 1 Zacks rank. BVH has a trailing four-quarter earnings surprise of 85.9% on average. The stock is up 22% over the past year.

Zacks consensus estimate for BVH’s current year sales and EPS indicate growth of 11.2% and 35.1%, respectively, from reported levels in the prior year period .

Funko sports a No. 1 Zacks rank. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have fallen 22.8% over the past year.

Zacks’ consensus estimate for Funko’s current fiscal year sales and EPS suggests growth of 26.8% and 31%, respectively, from reported levels in the prior year period.

Civeo carries a Zacks Rank #2. The company has a four-quarter earnings surprise of 1,565.1% on average. Shares of the company are up 62.6% over the past year.

Zacks’ consensus estimate for CVEO’s sales and earnings per share (EPS) in 2022 suggests growth of 12.5% ​​and 1,450%, respectively, from year-ago period levels.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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