Choice Hotels' Upscale Portfolio Continues To Outperform The Industry

Rhea-AI Summary

Choice Hotels International's upscale brands, Ascend Hotel Collection and Cambria Hotels, saw significant growth in 2021, achieving domestic RevPAR index share gains over local competitors.

Both brands expanded their domestic hotel presence by 13%, with Ascend growing its unit count by 15% year-over-year and exceeding 2019 RevPAR levels by 14% in Q4.

Cambria achieved its strongest RevPAR growth in history, with over 12 percentage points gain compared to 2019, and plans to open over 10 new hotels in 2022.

Positive

• Ascend Hotel Collection expanded by 15% year-over-year, now with 325 hotels.
• Cambria Hotels achieved historic RevPAR index share gains of over 12 percentage points compared to 2019.
• Both brands outperformed local competitors and the upscale segment in RevPAR growth in 2021.
• Plans to open over 10 new hotels in 2022 indicate strong growth prospects.

Negative

• None.

ROCKVILLE, Md., Feb. 28, 2022 /PRNewswire/ -- Choice Hotels International, Inc.'s (NYSE: CHH) upscale brands, the Ascend Hotel Collection and Cambria Hotels, achieved domestic systemwide RevPAR index share gains versus its local competitors in 2021 compared to the same period of 2019. At the same time, both brands combined to expand the number of domestic upscale hotels by 13% year-over-year, excluding the impact of AMResorts^® properties' exit following its acquisition. The success of Ascend, a global portfolio of resort, boutique and historic hotels, and Cambria, designed for modern travelers with a distinct local experience, further confirms the company's strategic focus on growing this revenue-intense segment.

"Despite another challenging year for our industry, Ascend and Cambria not only drove RevPAR outperformance versus their local competitors, they also outperformed the upscale chain scale in RevPAR growth as they continue to offer guests a category-defining experience," said Janis Cannon, senior vice president, upscale brands, Choice Hotels. "Our continued upscale success, even amid times of uncertainty, proves that our strategy and commitment to growing these brands is working. Hotel owners are drawn to the strong value proposition that Ascend and Cambria provide, while guests are increasingly selecting these brands for their next adventure because they love the uniquely local experience and upscale amenities they offer. We look forward to bringing these beloved brands to more top-notch locations where owners want to develop, and guests want to visit."

Choice's upscale brands experienced several notable achievements throughout 2021 and in the fourth quarter, including:

• Ascend Hotel Collection continued to solidify its position as the world's largest soft brand, expanding its domestic unit count by 15% year-over-year, excluding the impact of AMResorts^® properties' exit following its acquisition. The brand now features 325 hotels open worldwide, adding several mountain, lake and bay retreats, from the Chesapeake Bay in Maryland to the Blue Ridge Mountains in North Carolina, to the collection last year. In addition to outperforming local competitors throughout 2021, in the fourth quarter, Ascend exceeded 2019 RevPAR levels, achieving a 14% increase in average daily rate, and outperformed the upscale segment by nearly 16 percentage points in RevPAR growth, compared to the same period of 2019.
• Cambria Hotels achieved its strongest RevPAR index share gains versus local competition in the brands history driven by both occupancy and average daily rate index gains in 2021. For the year, Cambria achieved RevPAR index share gains versus local competition of over 12 percentage points compared to 2019. The brand also continued to drive positive unit growth for Choice, expanding to 57 hotels, debuting eight hotels in 2021 with 17 projects under active construction at year-end, including six ground breakings with four taking place in the fourth quarter. In 2022, the brand expects to open over 10 new hotels across the country.

"Our success throughout 2021 proves our upscale brands provide an attractive value proposition for current and future owners in practically any economic environment," said Mark Shalala, senior vice president of development, upscale brands, Choice Hotels. "Ascend allows owners to maintain their independence while improving their reservation delivery and providing access to industry-leading tools and resources, while Cambria affords owners the opportunity to develop new-construction or adaptive reuse hotels in top leisure destinations. Cambria has also recently debuted another opportunity to grow the brand with a new prototype developed specifically for secondary and leisure markets. Just as guests love the brands for their ideal locations and upscale offerings, developers appreciate the value they generate."

For more information about Choice Hotels development opportunities, visit https://choicehotelsdevelopment.com/.

All Choice-branded hotels are participating in Commitment to Clean, an initiative that builds upon the strong foundation of franchisees' long-standing dedication to cleanliness with enhanced training and best practices for deep cleaning, disinfecting and social distancing. Additionally, Cambria guests can limit their interactions with hotel staff by using the Cambria Contactless Concierge Service, a text messaging service for housekeeping requests, to-go food orders, meeting room requests and more.

About Choice Hotels^®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. With more than 7,000 hotels, representing nearly 600,000 rooms, in 35 countries and territories as of December 31, 2021, 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 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 recent achievements of Choice Hotels' upscale brands as of February 2022?

Choice Hotels' upscale brands, Ascend Hotel Collection and Cambria Hotels, achieved significant growth in 2021, expanding hotel numbers and outperforming local competitors in RevPAR.

How much did Ascend Hotel Collection grow in 2021?

Ascend Hotel Collection saw a 15% growth in its domestic unit count year-over-year.

What are the RevPAR index share gains for Cambria Hotels in 2021?

Cambria Hotels achieved RevPAR index share gains of over 12 percentage points compared to 2019.

What are the plans for Cambria Hotels in 2022?

Cambria Hotels plans to open over 10 new hotels across the country in 2022.

How did Ascend Hotel Collection perform in the fourth quarter of 2021?

In Q4 2021, Ascend Hotel Collection exceeded 2019 RevPAR levels with a 14% increase in average daily rate.