Cambria Hotels Drives Coast-to-Coast Expansion with 10 New Franchise Agreements and Four Groundbreakings

Rhea-AI Summary

Cambria Hotels, a brand of Choice Hotels International (NYSE: CHH), has secured 10 new franchise agreements aimed at expanding its presence in attractive secondary and leisure markets. The agreements support the new cost-efficient Cambria prototype which balances upscale design with operational efficiency. Recently, the brand marked four groundbreakings in under ten days, showcasing robust growth despite rising interest rates and construction costs. Additionally, the number of domestic franchise agreements awarded in Q1 2022 has more than doubled from the previous year, indicating strong market demand.

Positive

• Secured 10 new franchise agreements, expanding into key secondary and leisure markets.
• New Cambria prototype designed to lower ownership costs while appealing to upscale guests.
• Successfully broke ground on four new projects in less than ten days.
• Domestic franchise agreements awarded in Q1 2022 more than doubled compared to Q1 2021.

Negative

• None.

ROCKVILLE, Md., June 9, 2022 /PRNewswire/ -- Building on its strategy to continually grow its footprint in markets sought-after by guests and developers alike, Cambria Hotels, an upscale brand franchised by Choice Hotels International, Inc. (NYSE: CHH), has awarded 10 franchise agreements to develop the new Cambria prototype. Launched in late 2021, the new prototype is uniquely designed to build the right sized Cambria for the right market, helping to lower the total cost of owning a Cambria hotel while continuing to deliver on the core hallmarks upscale guests prefer.

The new Cambria prototype option will continue to deliver the brand hallmarks and signature amenities that appeal to modern travelers. These new franchise agreements help accelerate the brand's presence in sought after secondary markets and leisure destinations, including:

• Buckeye, Arizona: A destination for wildlife and outdoor enthusiasts, this suburb in the western Phoenix metropolitan area offers miles of trails for hikers, bikers, and more.
• Tracy, California: Located just outside California's Bay Area, this city is best known for its railroads, agriculture, wineries and rich history. 
• Sacramento, California: As the Golden State's fifth largest city and state capital, Sacramento is celebrated for its vibrant culture and thriving farm-to-table food scene. 
• Palmdale, California: Nicknamed the "aerospace capital of America" for its main industry, this city is situated north of Los Angeles and home to breathtaking mountain views and abundant outdoor activities.
• Seekonk, Massachusetts: Situated along the Massachusetts-Rhode Island border, Seekonk is a thriving commercial center located 10 minutes from Downtown Providence, Brown University and other local attractions.
• West Yarmouth, Massachusetts: Centrally located on the south shore of Cape Cod, this town is conveniently located next to Hyannis Harbor with daily ferry service to Nantucket and Martha's Vineyard.
• Southaven, Mississippi: Situated on the Mississippi-Tennessee border, this city is a principal suburb in the greater Memphis area, known for its family friendly attractions, growing economy and close proximity to the University of Mississippi.
• Portsmouth, New Hampshire: Located near the mouth of the Piscataqua River, this city is known for its history – ranking sixth in the U.S. for National Geographic Traveler's "Historic Places" – with hundreds of restaurants, and a vibrant arts and cultural scene.
• Medford, Oregon: Hailed as a quintessential Pacific Northwest destination, this city is ideally located in southern Oregon, providing easy access to breathtaking natural scenery, top wineries and local dining.
• Sevierville, Tennessee: Nestled in the Great Smoky Mountains foothills, this town is home to popular hiking trails and scenic waterfalls as well as endless shopping at its popular galleries, boutiques, flea markets and antique stores.

"Key to our continued success is working with the right developers in the right markets, which is why we are proud to provide yet another development option for new and existing owners alike to grow their portfolio with the Cambria brand," said Mark Shalala, senior vice president of development, upscale brands, Choice Hotels. "From the start, Cambria has been revered among guests for delivering an upscale product that's both approachable and thoughtfully curated just for them. These same tenets have always been central components of the brand's value proposition, and are similarly reflected in the latest prototype, which is intended to deliver cost-efficient designs and operational efficiency in a sophisticated package, so more owners can tap into the growing upscale market."

As the brand grows both its design forward, hybrid prototype and custom designed hotels, it celebrates four back-to-back groundbreakings in less than ten days. This expansion continues, despite the rise in interest rates and cost of materials, which is a testament to the brand and prototype. In the first quarter of 2022 the number of domestic franchise agreements awarded for the brand has more than doubled, compared to the same period of 2021.

Successfully breaking ground on four new, custom development projects in less than ten days—including the Cambria Hotel Rehoboth Beach last week—these groundbreakings further underscore Cambria's rapid coast-to-coast expansion:

• Cambria Hotel Spokane, Washington: Ideally located at 4611 South Dowdy Road, the future four-story, 90-room Cambria will position guests near the city's top employers and area attractions, including Fairchild Air Force Base, Gonzaga University, Spokane Falls and Manito Park.
    
• Cambria Hotel Burbank, California: The six-story, 90-room Cambria hotel will be situated at 201 South Glenoaks Boulevard and provide guests will easy access to downtown Los Angeles, as well as top regional leisure attractions such as Walt Disney Studios, Warner Bros. Studios and Nickelodeon Studios. The hotel will also be a short drive to nearby state parks and nature preserves. 
    
• Cambria Hotel North Conway, New Hampshire: Set against the backdrop of White Mountain National Park at 1858 White Mountain Highway, when it opens, the three-story, 115-room Cambria will serve as the ideal destination for adventure-seeking guests in search of the area's top hiking trails, leaf-peeping spots and ski-slopes. The hotel will also be closely located to nearby outlet malls and the Mt. Washington Observatory.

"Cambria Hotels has arrived. After successfully doubling the size of our portfolio in the last five years, the brand is now located in nearly 75% of the top U.S. markets, where its design-forward, locally-tailored, upscale experience continues to resonate strongly with modern travelers," said Janis Cannon, senior vice president, upscale brands, Choice Hotels. "Growth-minded developers have taken notice as well, and the popular Cambria prototype offers this group a new opportunity to access the benefits of our segment-defining brand, while streamlining costs and maximizing operational efficiencies. These latest development milestones affirm our expansion strategy is working and together, with our growing development community, we look forward to propelling the Cambria brand to new heights and new markets – from scenic Cape Cod to downtown Albuquerque and beyond."

There are currently more than 130 Cambria hotels open or under development across the U.S. in popular cities such as Chicago, Los Angeles, Nashville, New Orleans, Phoenix and Washington, D.C.

For more information on Cambria Hotels development opportunities, visit choicehotelsdevelopment.com/cambriahotels. 

About Cambria^® Hotels
The Cambria Hotels brand is 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, Los Angeles, New York, Pittsburgh, and Washington, D.C. There are more than 130 Cambria properties open or in the pipeline across the United States, with nearly 60 currently open. To learn more, visit www.choicehotels.com/cambria.

About Choice Hotels^®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. With nearly 7,000 hotels, representing nearly 600,000 rooms, in 35 countries and territories as of March 31, 2022, the Choice^® family of hotel brands provides business and leisure travelers with a range of high-quality lodging options from limited service to full-service hotels in the upscale, midscale, extended-stay and economy segments. The award-winning Choice Privileges^® loyalty program offers members benefits ranging from everyday rewards to exceptional experiences. For more information, visit www.choicehotels.com.

Forward-Looking Statement
This communication includes "forward-looking statements" about future events, including anticipated development and 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 and our Quarterly Reports on Form 10-Q, any of which could cause actual results to be materially different from our expectations.

Addendum
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, development@choicehotels.com.

© 2022 Choice Hotels International, Inc. All Rights Reserved

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SOURCE Choice Hotels International, Inc.

FAQ

What are the new markets for Cambria Hotels franchise agreements in 2022?

Cambria Hotels secured franchise agreements in markets such as Buckeye, Arizona; Tracy, California; Sacramento, California; and more.

How many franchise agreements did Cambria Hotels award in Q1 2022?

In the first quarter of 2022, Cambria Hotels' franchise agreements awarded more than doubled compared to the same period in 2021.

What is the significance of the new Cambria prototype?

The new Cambria prototype aims to reduce the total cost of ownership while maintaining upscale design and amenities.

How many new projects did Cambria Hotels break ground on recently?

Cambria Hotels successfully broke ground on four new custom development projects in under ten days.

What is the stock symbol for Choice Hotels International?

The stock symbol for Choice Hotels International is CHH.