Choice Hotels Focuses on Multi-Unit Development to Accelerate Cambria Growth
ROCKVILLE, Md - March 20, 2018 // PRNewswire // - Choice Hotels International, Inc. (NYSE: CHH), franchisor of Cambria Hotels, recently began a new effort centered on multi-unit development to help grow the brand even more rapidly. On the heels of opening its 10th property in 10 months earlier this year, the expanded approach will use part of the $475 million in capital support the company has earmarked for the Cambria brand to target developers that will build multiple properties.
"The Cambria brand is coming off a record year of growth in 2017 and progress continues. While we will continue to invest in individual projects, we are experiencing strong demand from the development community as well as institutional capital partners who want to develop and invest in multiple projects with us," said Mark Shalala, vice president, development, upscale brands, Choice Hotels. "Taking a more programmatic investment approach with multi-unit developers is a winning strategy. It can dramatically help accelerate growth while driving product and operational consistency across the chain. This helps increase brand equity for our owners and, most importantly, it improves the overall guest experience from market to market. For our developers, this approach establishes a consistent investment platform and level of capital participation from Choice. It helps improve return on investment and can make it easier to raise equity and secure debt for their projects, a critical factor at this point in the cycle."
As a part of the investment strategy, Choice will be teaming up with several developers to expand the Cambria brand, including Four Raines Development and Fillmore Capital Partners.
"Cambria Hotels is a tremendous product that guests love, and our collaboration with Choice, which provides everything imaginable, is second to none. We have worked closely for several years now and our familiarity with one another makes it an easy decision to agree to build more hotels together," said Grey Raines, managing partner of Four Raines Development.
There are now nearly 120 Cambria hotels open or in the pipeline, located in 75 percent of the top 50 U.S. RevPAR markets. The brand delivered a strong performance in 2017 with a high LTR and results outpacing the industry in RevPAR, OCC and ADR.
The latest Cambria openings include a mix of new construction and adaptive reuse projects:
- Cambria Hotel Phoenix Chandler - Fashion Center (opened January 31, 2018, Arizona) - Located near Loops 101 and 202, the 136-room property is part of the Chandler Viridian, a 25-acre mixed-use development project that includes office space, luxury apartments, retail offerings and a pedestrian promenade to the Chandler Fashion Center.
- Cambria Hotel Nashville (opened January 16, 2018, Tennessee) - The 255-room hotel is located in the city's South of Broadway neighborhood and is a short distance from top attractions such as the Music City Center, Bridgestone Arena, Nissan Stadium and Historic Broad Street.
- Cambria Hotel Dallas (opened December 31, 2017, Texas) - The 177-room property is an adaptive reuse project, formally known as the historic Tower Petroleum building, located near businesses and leisure attractions in the heart of downtown Dallas.
- Cambria Hotel North Scottsdale Desert Ridge (opened December 21, 2017, Arizona) - Just minutes from downtown Phoenix, the 130-room hotel is situated in Desert Ridge, which offers shopping and dining options at the intersection of Highway 101 and Tatum Boulevard.
- Cambria Hotel Westfield (opened December 19, 2017, Indiana) - Part of the Westfield Grand Park Village, the 152-room property is directly across from Westfield's Grand Park Sports Campus and a short drive from downtown Indianapolis.
- Cambria Hotel Downtown Asheville (opened December 16, 2017, North Carolina) - The 136-room hotel offers guests rooftop views of Asheville's Blue Ridge Mountains and is located near the city's award-winning craft breweries, restaurants, art galleries and music venues.
- Cambria Hotel New Orleans Downtown Warehouse District (opened October 10, 2017, Louisiana) - Situated in the heart of the Arts and Warehouse District, the 162-room property is walking distance from the French Quarter and minutes from the New Orleans Convention Center.
- Cambria Hotel Newport (opened June 9, 2017, Rhode Island) - The 143-room hotel offers guests picturesque waterfront views and is a short distance from Easton's Beach, the Naval Station and the iconic Newport mansions.
- Cambria Hotel Chicago Loop - Theatre District (opened May 25, 2017, Illinois) - Situated above the historic Ford Center for the Performing Arts Oriental Theatre, 199-room hotel is the brand's first adaptive reuse project and features décor that pays tribute to the building's colorful past and unique design features.
- Cambria Hotel Los Angeles - LAX (opened May 1, 2017, California) - The 152-room property is the brand's first hotel on the west coast and features design elements inspired by the surrounding fashion-forward city. The property is just minutes from Los Angeles International Airport.
"The Cambria brand is experiencing explosive growth," said Janis Cannon, senior vice president, upscale brands at Choice Hotels International. "Progress of this scale and speed is the result of our tremendous development collaborators as well as the demands of modern travelers who love the stylish, yet approachable Cambria brand. We're starting off strong in 2018 with openings in Nashville and Philadelphia, and we look forward to bringing our great product to more guests' favorite cities, including Boston before the end of the year."
Future openings are planned in Austin, Texas; Burbank, Calif.; Baltimore; Calabasas, Calif.; Charleston, S.C.; Houston; Miami; Milwaukee; Minneapolis; Napa, Calif.; Orlando, Fla.; San Francisco; Tampa, Fla.; and Washington, D.C.
For more information on Cambria Hotels development opportunities, please visit https://choicehotelsdevelopment.com/cambriahotels/.
About Cambria Hotels
Cambria® Hotels are designed for the modern traveler, offering guests a distinct experience with simple, guilt-free indulgences allowing them to treat themselves while on the road. Properties feature compelling design inspired by the location, spacious and comfortable rooms, flexible meeting space, and local freshly prepared food and craft beer. Cambria Hotels is rapidly expanding in major U.S. cities, with hotels open in Chicago, New York City, Pittsburgh, Washington, D.C., and Los Angeles. There are more than 35 Cambria properties open across the United States, and over 100 hotels open or in the pipeline in the U.S. and Canada. To learn more, visit www.cambriahotelsandsuites.com.
About Choice Hotels
Choice Hotels International, Inc. (NYSE: CHH) is one of the world's largest hotel companies. With over 6,800 hotels franchised in more than 40 countries and territories, Choice Hotels International represents more than 500,000 rooms around the globe, and as of February 1, 2018, more than 1,000 hotels were in its development pipeline. Our company's Ascend Hotel Collection®, Cambria® Hotels, Comfort Inn®, Comfort Suites®, Sleep Inn®, Quality®, Clarion®, MainStay Suites®, Suburban Extended Stay Hotel®, WoodSpring Suites®, Econo Lodge®, Rodeway Inn®, and Vacation Rentals by Choice Hotels® brands provide a spectrum of lodging choices to meet guests' needs. With more than 35 million members, our Choice Privileges® rewards program enhances every trip a guest takes, with benefits ranging from every day rewards to exceptional experiences, starting right when they join. All hotels and vacation rentals are independently owned and operated. Visit us at www.choicehotels.com for more information.
This communication includes "forward-looking statements" about future events, including anticipated hotel openings. Such statements are subject to numerous risks and uncertainties, including construction delays, availability and cost of financing and the other "Risk Factors" described in our Annual Report on Form 10-K, any of which could cause actual results to be materially different from our expectations.
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 1 Choice Hotels Circle, Suite 400, Rockville, MD 20850, email@example.com.
© 2018 Choice Hotels International, Inc. All Rights Reserved.
SOURCE Choice Hotels International, Inc.