Choice Hotels Is Pursuing Aggressive Expansion Plans For Cambria Hotels
Choice Hotels International is attending this year’s ICSC RECon with a specific goal in mind: to find and acquire land deals and other buildings that could be converted into Cambria Hotels, the company's upscale brand. Choice's current expansion efforts are primarily focused on Cambria Hotels, which did well last year, with RevPAR up more than 15%.
Bisnow spoke with Choice managing director of real estate and capital management Steve Stoycos about the company's aggressive plans for Cambria, and why it is pursuing them at RECon.
Bisnow: What are the details of your land strategy?
Stoycos: Choice Hotels purchases land and buildings in key urban destinations, and leverages these locations to secure Cambria Hotels franchise agreements. Nearly 100 hotels are currently in the Cambria pipeline, and a third of these properties [are being developed as] a result of land or a building that was identified and secured through Choice Hotels.
Bisnow: Where are you looking?
Stoycos: We're seeking partners in such urban locations as Denver, Austin, Minneapolis, Glendale, California, and the Potomac Yard in northern Virginia. [We also are] looking for land or buildings in such markets as Portland, Seattle, San Francisco, San Diego, Boston, Cleveland and Columbus, Ohio.
Bisnow: Why those markets?
Stoycos: We take a strategic approach when making decisions as to new Cambria Hotel locations. We look at market research and other specific criteria, including proximity to area businesses, and entertainment and leisure attractions. Designed for business and leisure travelers, Cambria also targets urban areas where there's consumer demand and strong opportunity for upscale properties.
Bisnow: What do you look for in a development partner?
Stoycos: Choice Hotels has worked with a range of franchisees and developers to help expand the Cambria brand — both long-standing franchisees, like Concord, Fillmore and O’Reilly Hospitality, as well as those new to Choice.
Cambria’s rapid expansion is a combination of three strategies. First, we’re partnering with top developers. Second, our adaptive reuse strategy helps bring hotels to markets where land is at a premium. Third, Choice’s corporate capital investment allows us to bring Cambria Hotels to the right markets faster.
Bisnow: Why look for partners at ICSC RECon?
Stoycos: RECon is the world’s largest real estate convention, so it’s a natural fit for our real estate team to attend and explore additional partnerships. We’re always evaluating options to grow and strengthen our brands, particularly Cambria.
There are now 29 Cambria Hotels across the United States, including three new ones that opened in the beginning of 2017, with another 11 properties scheduled to open during the remainder of the year. Also, 18 groundbreakings and multiple executed franchise agreements are expected. The number of Cambria openings will double in 2018 compared with last year.
