Choice Hotels International, Inc. (NYSE:CHH) , which banks on solid brand presence and continual expansion for growth, has announced the opening of a hotel in greater Portland, OR. Notably, this opening marks the company’s 250th hotel under its WoodSpring Suites brand and the first in the state of Oregon.
The company is quite confident about the success of this hotel as Portland is a business-friendly city. The 122 room WoodSpring hotel is a short drive from many universities, hospitals and corporate offices like Nike (NYSE:NKE), Boeing (NYSE:BA), and Lithia Motors Inc. and subsidiaries of Intel (NASDAQ:INTC), eBAY as well as Hewlett-Packard.
Ever since the acquisition of WoodSpring Suites in February 2018, extended-stay hotels have doing exceptionally well. The buyout helped RevPAR to grow by 7.6% in 2018 outpacing the industry by 470 basis points. Currently, the company has 117 hotels under its pipeline. Patrick Pacious, president and CEO of Choice Hotels said that “The WoodSpring Suites brand has seen significant business delivery growth nearly every month since the acquisition.”
In 2019, the WoodSpring Suites brand anticipates to open approximately 20 hotels in Miami and Orlando, FL, Sacramento, CA, and San Antonio. By the end of 2020, Choice Hotels expects to have 300 WoodSpring Suites hotels.
Meanwhile, management continues to expand its international footprint in new countries alongside domestic growth. In April, Choice Hotels announced a strategic alliance with Sercotel — a leading hotel operator and franchisor based in Spain. This alliance will enable the expansion of Choice Hotels’ global footprint in Spain and other markets as well as create opportunities for additional hotel development across Europe and Latin America.
Driven by its expansion strategy, shares of Choice Hotels have gained 12.3% year to date compared with the industry’s 8.2% growth.
Choice Hotels, which shares space with Extended Stay America, Inc. (NASDAQ:STAY) and Marriott Vacations Worldwide Corporation (NYSE:VAC) , has a Zacks Rank #3 (Hold).
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