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Choice Hotels International Accelerates Growth in Canada with Six New Ascend Collection Properties in Québec

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The multi‑unit agreement marks the first major step since the company's consolidation of Choice Hote...

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Choice Hotels International (CHH) plans to expand its Ascend Collection in Canada with six new properties, strengthening its market presence and rewards program. This expansion marks a significant 20% growth in the Canadian Ascend portfolio, aligning with a recent 7% increase in Canadian RevPAR during Q3.

Trading Thesis

Investing in CHH could yield positive returns as it expands and diversifies internationally.

Market-Moving

  • Expansion in high-demand resort areas could increase future revenue streams for CHH.
  • Increased properties enhance Choice Privileges program, potentially attracting more customers.
  • Strong Q3 Canadian RevPAR growth shows resilience in the hospitality market.
  • Strategic international expansions could set the stage for long-term growth.
  • Positive developments in Canada can increase investor confidence in CHH.

Key Facts

  • CHH announced a multi-unit agreement to open six new hotels in Canada.
  • This will grow the Ascend Collection by 20% in Canada.
  • CHH reported a 7% year-over-year increase in Canadian RevPAR in Q3.
  • The new hotels will include a variety of amenities and unique features.
  • CHH maintains over 2,800 additional rooms in the Canadian development pipeline.

Companies Mentioned

  • Choice Hotels International (CHH): Continued expansion in Canada indicates strong growth potential.
  • SSAWW Hotels & Resorts: Partnership involving over 9,500 rooms may impact CHH's competitive positioning.

Corporate Developments

The hospitality industry is currently experiencing a strategic shift towards more diverse offerings and international expansion. Company-specific growth efforts in markets like Canada and Africa are crucial for maintaining a competitive edge and meeting changing consumer preferences.

FAQ

Why Bullish?

CHH’s strategic expansion aligns with positive market trends and revenue growth, featuring successful historical expansions in similar markets that resulted in robust stock performance.

How important is it?

The expansion represents a significant move in a high-demand market, indicating CHH's commitment to growth and innovation, which is likely to resonate positively with investors and analysts alike.

Why Long Term?

While initial impacts may be slight, the long-term benefits of expanded presence can lead to sustained revenue growth, similar to previous expansions seen in other hotel franchises.

Related Companies

Choice Hotels International Accelerates Growth in Canada with New Ascend Collection Properties

Choice Hotels International, Inc. (NYSE: CHH) is set to enhance its presence in Canada by introducing six new properties under its Ascend Collection brand in Québec, scheduled to open in early 2026. This multi-unit agreement signifies a significant step in the company's growth strategy following the consolidation of Choice Hotels Canada.

Expanding the Ascend Collection in Canada

The addition of these six properties will strengthen the Ascend Collection's footprint in high-demand areas like Montréal and various resort destinations. This expansion will also increase the number of locations where members can redeem points through the award-winning Choice Privileges loyalty program, which offers access to over 7,100 hotels globally.

  • Hotel Brossard, Brossard: A 139-room property near downtown Montréal featuring suites with European chateau-inspired designs and select accommodations with in-room fireplaces.
  • Hotel Cheribourg, Orford: This 123-room hotel boasts jacuzzis, both indoor and outdoor pools, and an indoor play area for children.
  • Hotel du Domaine, Thetford Mines: An accommodation with over 100 rooms, lakeside chalets, and camping options set against the stunning Appalachian Mountains.
  • Hotel Montréal Metropolitan, Montréal: A 92-room hotel offering fully furnished kitchens and a Cuban restaurant on-site.
  • La Cache du Lac Champlain, Venise-en‑Québec: A 56-bedroom boutique hotel with lakeside views, a spa, and an 18-hole golf course.
  • Manor Des Sables, Orford: A 141-room property featuring panoramic views of Mount Orford, indoor and outdoor pools, a spa, and various athletic amenities including kayaking and group sports.

Growth Strategy and Market Performance

The new additions will expand the Ascend portfolio in Canada by 20%, demonstrating robust growth potential as Choice Hotels continues to perform well in the Canadian market. In Q3, the company reported a 7% year-over-year increase in Revenue per Available Room (RevPAR).

Pat Pacious, President and CEO of Choice Hotels, stated, "Our transition to a direct franchising model in Canada set the stage for rapid growth, and these latest deals mark an exciting milestone in our expansion plans. This growth in the Ascend Collection is a testament to our significant gains achieved globally this year."

Vision for Future Expansion

The multi-unit deal was facilitated by Bing Zhao, a well-known hotel developer in Québec and a franchisee with Choice Hotels since 2017. He expressed confidence in the expansion strategy, noting, "Choice Hotels' commitment to my success—combined with their extensive distribution network—proves that now is the right time to grow with the company."

Moreover, Choice Hotels is actively maintaining development momentum in Canada, with over 2,800 additional rooms planned as of Q3. New brands, including Cambria Hotels, are also slated to enter the Canadian market next year.

International Growth and Achievements

With an ambitious target for high single-digit international room growth this year, Choice Hotels is optimistic about its expanding portfolio, which now includes more than 150,000 rooms outside the U.S. Recent highlights include:

  • Entry into Africa with three new hotels in Kenya, part of a plan to add at least 15 hotels by 2030.
  • The launch of MainStay Suites in Australia, marking the brand's first expansion outside of North America.
  • A substantial addition of 50 new Quality Suites properties in France, nearly doubling the company's footprint in this key market.
  • A master franchise agreement with SSAW Hotels & Resorts in China, projected to add over 9,500 rooms to the Ascend Collection.
  • A 20-year renewal of its agreement with Atlántica Hospitality International in Brazil, covering 70 hotels with over 10,000 rooms.

About Choice Hotels International

Choice Hotels International, Inc. (NYSE: CHH) is one of the world's largest lodging franchisors, with a portfolio comprising over 7,500 hotels across 47 countries. The diverse range of 22 brands enables Choice to meet various travel needs while maximizing value for franchise owners and shareholders. The award-winning Choice Privileges program further enhances guest experiences through its loyalty offerings.

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