Choice Hotels International, Inc.’s CHH Ascend brand recently announced the addition of The Harborview in Port Washington, The Crossroads Hotel – Newburgh in Newburgh and the 17 West Hotel in Tulsato its global line of hotels and resorts. Located in Wisconsin, New York and Oklahoma, the hotels will offer a range of outdoor experiences and Ascend brand’s services and amenities.
Nestled along the shores of Lake Michigan, the 93-room Harborview hotel comes with an onsite restaurant and bar and is in proximity to 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 like Hudson Highlands State Park, Storm King State Park, Woodbury Common Premium Outlets and Legoland. The 17 West Hotel offers spacious guestrooms and onsite dining. Also, the property is in near BOK Center, Tulsa Performing Arts Center, Oklahoma Jazz Hall of Fame and Blue Dome District.
Janis Cannon, senior vice president of upscale brands, Choice Hotels, stated, “Consumer travel preferences have evolved. Rather than bank away annual vacation days for a single holiday, travelers are increasingly taking advantage of opportunities to extend weekend trips and enjoy the flexibility of working remotely. With more than 200 distinct locations nationwide, Ascend hotels provide ideal accommodations for any getaway.”
Focus on Ascend Brand Bodes Well
With more than 315 hotels around the globe, Choice Hotels’ Ascend portfolio has been doing solid 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 gained 19.4% year over year. The brand has been well received on account of smart conversion opportunities. The company stated plans to open hotels in Orlando, FL, and Las Vegas, NV.
The company is optimistic with respect to its expansion strategies through acquisitions and franchise agreements. Also, a strategic agreement with Penn National to offer reciprocal earning and redemption benefits to members of Choice Privileges and Penn’s mychoice loyalty program is likely to benefit the company in the upcoming periods.
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In the past year, shares of Choice Hotels have gained 5.6% against the industry’s fall of 4.6%. The company is benefiting from sequential increases in its business and group travel demand, driven by a rise in extended vacations, household relocations and temporary remote work assignments. The transition of leisure travel into mainstream business added to the positives. Also, its focus on the loyalty program bodes well. Going forward, the company emphasizes on expansion strategies, enhancement of the mid-scale brand and transformation and advancement of the Comfort brands to drive growth in the upcoming periods. Earnings estimates for 2022 have moved up in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Other Key Picks
Choice Hotels currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some 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 Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has increased 22% in the past year.
The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.
Funko sports a Zacks Rank #1. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 22.8% in the past year.
The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels.
Civeo carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have increased 62.6% in the past year.
The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s 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.