Choice Hotels International, Inc. CHH continues to focus on expanding its footprint in the extended stay segment. The company recently announced the opening of three new Everhome Suites properties in Huntsville, AL, Chandler, AZ, and Temecula, CA. This expansion underscores the company’s growing influence in one of the most in-demand categories in hospitality.
Everhome Suites, Choice Hotels’ midscale extended stay brand, now boasts 10 open locations nationwide. The brand's growth trajectory remains strong, with 25 locations expected by year-end and 20 currently under construction. In total, more than 65 Everhome Suites properties are in the development pipeline, reflecting the confidence of the developer in the brand's long-term potential.
This surge aligns with broader trends in the hospitality sector, where extended stay remains a standout performer. Choice Hotels has seen impressive momentum in this area, with a notable increase in domestic extended stay rooms over the past year. Across its four extended stay brands, the company now operates 515 hotels, with nearly 400 in the pipeline.
The company recently rolled out a digital marketing campaign to raise awareness for Everhome Suites, positioning it as the preferred option for long-staying guests seeking affordability, comfort and modern amenities. This marketing push complements its operational support system, which continues to attract new developers and operators.
As consumer demand continues to favor long-term travel options, Everhome Suites stands out as a key growth engine for the company, one that investors should keep a close eye on.
In the past year, the company’s shares have gained 5.2% compared with the industry’s growth of 1.4%. CHH is benefiting from unit expansion, franchising efforts and the integration of the Radisson Americas brands.
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Choice Hotels reported a 4.3% year-over-year increase in its domestic rooms growth rate during the fourth quarter of 2024. In the upscale segment, Choice Hotels expanded its 2024 footprint with a 12% rise in global openings and an 8% increase in domestic franchise agreements compared with the prior year. The Ascend Hotel Collection saw particularly strong momentum with a 43% year-over-year increase in worldwide openings.
CHH currently has a Zacks rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are RCI Hospitality Holdings, Inc. RICK, Mattel, Inc. MAT and Royal Caribbean Cruises Ltd. RCL.
RCI Hospitality currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter negative earnings surprise of 62.9%, on average. The stock has declined 24.6% in the past year. The Zacks Consensus Estimate for RCI Hospitality’s 2025 sales and earnings per share (EPS) indicates growth of 2.5% and 1,278.8%, respectively, from year-ago levels.
Mattel currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 37.6%, on average. The stock has declined 14.1% in the past year.
The Zacks Consensus Estimate for Mattel’s 2025 sales and EPS indicates growth of 1.4% and 4.9%, respectively, from year-ago levels.
Royal Caribbean currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has rallied 38.7% in the past year.
The Zacks Consensus Estimate for Royal Caribbean’s 2025 sales and EPS indicates growth of 9.1% and 26.7%, respectively, from year-ago levels.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Mattel, Inc. (MAT) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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