Choice Hotels Introduces New Hotel Brand

"Domestic and international travel is on the rise, and corporations are loosening the purse strings of travel budgets, which have led to occupancy increases in most major US markets," Marcus & Millichap's most recent Hospitality Research Report concludes; the study estimates that there will be a 150 basis point increase in occupancy for 2005.

Cambria Suites will be a step up from the typical extended-stay property. The hotels will feature 100 to 150 guestrooms, with each suite providing such added amenities as designated living/work rooms and bedrooms, high quality linens and plasma televisions. "The appeal of Cambria Suites is that it more than satisfies the needs of traditional travelers while also catering to multi-tasking, active, experiential travelers who will appreciate the brand's contemporary styling and its functional attributes," says Choice Hotels CEO Charles A. Ledsinger Jr.

The company will target secondary urban markets, and as for the number of hotels that are being planned initially, Ledsinger tells GlobeSt.com that the company is unable to disclose details on the matter, but concedes that "we have aggressive sales goals." Choice Hotels estimates that the cost of developing the properties--land and soft costs notwithstanding--will be approximately $63,000 per-suite, or $6.3 million to $9.5 million for each hotel.

Choice Hotels' stable of brands includes, but is not limited to, Comfort Inn, Clarion, MainStay Suites and Econo Lodge. Starting a new hotel brand would have been unthinkable three years ago, but the hotel market is beginning to regain its steam after suffering through an economic recession and being devastated by the post-Sept. 11 environment that pummeled the US lodging industry.

"All roads--consumer preferences, business and leisure travel trends, the short- and long-term development landscape and our own brand portfolio--lead to the launch of Cambria Suites," Ledsinger adds in a prepared statement. "The profit potential represented by this brand, in today's marketplace and with the powerhouse support system offered by Choice Hotels, is significant."