Published on 30 May 2024 on Zacks via Yahoo Finance
Here's Why You Should Retain Choice Hotels' (CHH) Stock
Choice Hotels International, Inc. CHH is likely to benefit from its unit growth strategy, hotel conversions and franchise business. Also, synergies through the Radisson Hotels Americas integration bode well. However, uncertain macroeconomic environments are a concern.Let us discuss the factors that highlight why investors should retain the stock for now.
Growth Catalysts
The company's distinct unit growth strategy continues to yield positive results, enhancing the attractiveness of its brands. By focusing on more revenue-intense hotels, CHH has significantly expanded its portfolio of higher revenue-generating franchises. The new franchises have proven to be more accretive to earnings, with average royalty revenues rising more than 20% from existing hotels.