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Choice Hotels International recently announced it will onboard 50 additional Quality Suites properties across France, nearly doubling its franchised hotel portfolio in the country from 57 to 107 locations.
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This expansion increases Choice Hotels’ reach in Europe’s largest hotel franchise market, bringing its brands to more than 30 new French cities and expanding opportunities for its loyalty program members.
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We’ll now consider how nearly doubling the French portfolio could influence Choice Hotels’ growth outlook and international franchise strategy.
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To own Choice Hotels International as a shareholder, you need to believe in the company’s ability to profitably expand its global franchise footprint, despite current pressures on revenue per available room (RevPAR) and subdued demand in government and international travel segments. While the nearly doubled French hotel presence is a meaningful portfolio boost and fits with the international growth strategy, this move may not materially alter the near-term catalyst, which is a sustained rebound in RevPAR. The bigger immediate risk remains sluggish revenue performance in key segments, which could pressure earnings if weakness persists.
The recently announced opening of Radisson Blu Bariloche in Argentina stands out as a relevant example of Choice’s broader international push alongside its French expansion. Both moves aim to deepen the company’s reach in fast-growing travel markets and signal ongoing investment in diversified, higher-upside regions, a clear bid to support unit and revenue growth beyond its US-centric portfolio. However, the positive momentum on new hotel openings needs to be weighed against the backdrop of fluctuating occupancy and global travel trends.
On the flip side, investors should be aware that sustained softness in government and international travel could…
Read the full narrative on Choice Hotels International (it’s free!)
Choice Hotels International’s outlook anticipates $1.8 billion in revenue and $354.2 million in earnings by 2028. This scenario assumes annual revenue growth of 30.6% and a $48 million increase in earnings from the current $306.2 million.
Uncover how Choice Hotels International’s forecasts yield a $129.36 fair value, a 24% upside to its current price.
Six fair value estimates from the Simply Wall St Community put Choice Hotels’ outlook between US$85 and US$122,273, reflecting sharply different forecasts. With international expansion accelerating, your view on long-term recovery in travel will likely shape your confidence in these estimates.
