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Choice Hotels to Open Hotel in Austin, Expands Footprint

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Choice Hotels International, Inc. (CHH - Free Report) has partnered with Brendan Gilyan of Mopac Hotel Development, LP, for developing new Cambria Hotel in Austin near the Domain. This 135-room upscale hotel is likely to open in 2021.

Notably, this latest move underscores the company’s efforts to expand its footprint and strengthen its upscale category. Driven expansion strategy, shares of Choice Hotels have gained 24.2% in a year against the industry’s 4.3% decline.

Strategic Expansion to Drive Growth

The Choice Hotels’ riveting growth potential is backed by consistent brand expansion. Also, its portfolio of well-segmented brands is getting stronger. Backed by continuous enhancement of the mid-scale brand, the WoodSpring acquisition, and transformation and advancement of the Comfort and Cambria brands, Choice Hotels is poised for growth in 2018.

Furthermore, Choice Hotels relies heavily on expansion in both domestic and international markets. Apart from constant franchise expansion, the company recently added 239 new extended-stay hotels in 35 states to its portfolio through the acquisition of Woodspring Suites.

In April, the company announced a strategic alliance with Sercotel — a leading hotel operator and franchisor based in Spain. This alliance will enable the extension of Choice Hotels’ global footprint in Spain and other markets, and create opportunities for additional hotel development across Europe and Latin America.

Zacks Rank & Stocks to Consider

Choice Hotels carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space, include Marriott International, Inc. (MAR - Free Report) , Red Lion Hotels Corporation and Wyndham Destinations, Inc. . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Marriott International reported better-than-expected earnings in the trailing four quarter, with an average of 14.7%.

Shares of Red Lion Hotels have gained 32% in the past six months.

Wyndham Destinations delivered positive earnings surprise in the trailing four quarter, with an average of 5.2%.

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