Choice Hotels Continues Upscale Category Growth with New Cambria Hotels Openings and Key Groundbreakings Across the U.S.

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Insights

The expansion of Choice Hotels' Cambria brand represents a strategic shift in their portfolio mix toward higher-margin upscale properties. The addition of 18 new Cambria properties in two years, plus a pipeline of 62 hotels, signals significant momentum in the upscale segment following their $675 million Radisson Americas acquisition in 2022.

Key growth metrics include:

3 new openings in strategic locations (California, Tennessee, Washington)
2 upcoming groundbreakings expanding into new markets (Missouri, Oregon)
75 total Cambria hotels currently operating
Pipeline of 62 additional properties

The focus on upscale properties aims to capture higher-value travelers and increase RevPAR (Revenue Per Available Room). The #1 ranking in J.D. Power's upscale segment satisfaction study validates this strategy. This expansion, combined with their rewards program enhancements, positions CHH to compete more effectively with established upscale players like Marriott and Hilton.

11/13/2024 - 09:30 AM

With new properties in California, Tennessee, Missouri, Oregon, and Washington, Cambria Hotels cements Choice as player to watch in upscale

NORTH BETHESDA, Md., Nov. 13, 2024 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH) continues to achieve cross-country growth in the upscale segment with three new Cambria Hotel openings and two groundbreakings this fall. The recently opened properties, located in Imperial, California; Pigeon Forge, Tennessee; and Spokane, Washington, and upcoming groundbreakings in O'Fallon, Missouri and Bend, Oregon introduce Cambria into new markets and build on Choice's goal to bring the brand to more regions nationwide.

With these latest openings, Choice has introduced 18 new Cambria properties in the last two years, including those in downtown Denver, Delaware's Rehoboth Beach and Niagara Falls, New York. They add to an expanding pipeline of 62 hotels, including the much-anticipated Cambria New York Times Square, opening in 2025. Cambria hotels are now in more locations than ever before, and with a focus on approachability and premium indulgences guests value most, they are meeting traveler demand for select-service upscale hotel experiences that feel like a true extension of their destination.

Choice Hotels in recent years has significantly expanded its upscale portfolio and has quickly become the player to watch in this segment. It acquired the Radisson Americas Hotels Americas group in 2022 and has invested in repositioning its brands. In its latest earnings update, the company announced record pipeline growth with upscale properties serving as a key driver.

"Our strategic investments in upscale are reaping rewards and there's little doubt that the Cambria brand is a vital part of this success," said Indy Adenaw, senior vice president and general manager of upscale brands, Choice Hotels International. "Each of these new openings represents our commitment to bringing Cambria to every state and giving more travelers the chance to experience the unique amenities, local-inspired design and unparalleled service that have cemented this brand as a top upscale option."

The newly opened Cambria destinations include:

Cambria Hotel El Centro – Imperial: The newest Cambria Hotel in California, which opened in September, celebrates the history and culture of the area through locally inspired décor, including mural photos depicting Imperial Valley's rich history. The boutique property has 108 rooms, 2,050 sq. ft. of meeting space, and offers close access to Anza Borrego Desert State Park, Algodones Dunes, Imperial County Fairgrounds and more. The property is the fifth Cambria to open in California as the brand expands its presence on the West Coast.
Cambria Hotel Pigeon Forge: Newly opened in October, the Cambria Hotel Pigeon Forge offers visitors the ideal blend of adventure and leisure in the Smoky Mountains. The hotel is just minutes away from some of the city's most popular attractions, including Dollywood, and is a short drive from hiking trails, biking, fishing and other outdoor activities. With 118 rooms, 738 sq. ft. of meeting space, a pool with a spectacular view of Mt. LeConte and onsite dining, Cambria Hotel Pigeon Forge is a relaxing spot to unwind after exploring. It is the fourth Cambria to open in Tennessee.
Cambria Hotel Spokane Airport: The first Cambria Hotel in the state of Washington, Cambria Hotel Spokane Airport is conveniently located just minutes from Riverfront Park, Gonzaga University and the Spokane International Airport. The hotel, which opened in September, has 91 rooms and 1,020 sq. ft. of meeting space, an on-property restaurant offering local and seasonal flavors, and complimentary airport transportation, providing a wonderful experience for business or personal travelers alike.

The upcoming groundbreaking Cambria properties include:

Cambria Hotel Bend Oregon is located close to Oregon State University and will have 131 rooms. Hotel demand in the area is driven by a year-round demand for hiking, fishing and skiing at the Mt. Bachelor Ski Resort, the official training center for many Winter Olympics athletes. The hotel is expected to open in 2026.
Cambria Hotel O'Fallon Missouri is located in the St. Louis metropolitan region and is the first Cambria Hotel in the state of Missouri. The 118-room property will reflect the local demand, which is driven by a mix of manufacturing, automotive and aerospace, financial services and data centers, with Citi, Mastercard, Allianz, Nortek Global HVAC, True Manufacturing and more having headquarters and operations in the city. The hotel is expected to open in 2026.

These newest Cambria Hotels, along with Choice's portfolio of upscale and upper upscale hotel brands including Radisson Blu, Radisson, Radisson Individuals, Radisson RED, and others, participate in the award-winning rewards program, Choice Privileges. Choice recently introduced new features aimed at giving members more value and opportunities to use their points that will roll out starting in early 2025. Through the program, members can redeem points at more than 7,000 hotels around the world, including 1,000 luxury and upscale, full-service hotels across Radisson, Radisson Blu, Cambria Hotels and Preferred Hotels and Resorts, and others. Members can earn more points even faster with the Choice Privileges Mastercard, which can be used on everyday purchases.

Choice Hotels takes a franchise-first approach and is committed to providing hotel owners with the tools and support needed to succeed in the fast-evolving hospitality landscape. Today, all owners and operators have access to Choice Hotel's suite of proprietary, cutting-edge cloud-based solutions, including the choiceMAX, which helps owners optimize revenue, and choiceConnect, a newly introduced mobile-friendly owner's portal that allows franchisees to easily and remotely manage their hotels and view metrics for all their Choice properties in one place.

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. Cambria hotels feature compelling design inspired by the location, spacious and comfortable rooms, flexible meeting spaces, and locally inspired food and beverages. Cambria Hotels is rapidly expanding in major U.S. cities, with 75 hotels open in locations like Chicago, New York, Los Angeles, Washington, D.C., Nashville, and Phoenix. Cambria was ranked #1 in the upscale segment in the J.D. Power 2023 North America Hotel Guest Satisfaction Index Study. 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. The challenger in upscale and a leader in midscale and extended stay, Choice® has more than 7,500 hotels, representing more than 630,000 rooms, in more than 45 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

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 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852 or by email at: development@choicehotels.com.

Forward-Looking Statements
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.