Comfort Inn - Boise (ID Photo credit: Persona).
To help support this planned joint venture and other growth opportunities for Cambria Hotels, the Choice Hotels Board of Directors has authorized an additional $250 million in capital investment.
ROCKVILLE, MD. – Building on Choice Hotels International, Inc.'s dedication to the growth of its upscale Cambria Hotels brand, the company entered into a letter of intent (LOI) with an affiliate of Oz Real Estate, the real estate platform of Oz Management, that sets forth a framework for a co-investment platform to accelerate the development of Cambria Hotels throughout the United States.
"The Cambria Hotels brand continues to drive success for Choice Hotels and, as evidenced by signing this LOI, we are attracting some of the largest institutional real estate investment groups in the world. The LOI with Oz Real Estate signals our companies' commitment to the brand through a contemplated 50-50 joint-venture agreement that could result in building as many as 50 Cambria Hotels in strong corporate travel markets," said David Pepper, chief development officer, Choice Hotels. "We believe this will propel the Cambria brand to the next level and rapidly deliver Choice's sought-after upscale brand."
To help support this planned joint venture and other growth opportunities for Cambria Hotels, the Choice Hotels Board of Directors has authorized an additional $250 million in capital investment.
Oz Real Estate invests in both opportunistic real estate private equity and real estate credit in the U.S and Europe. Founded in 2003, Oz Real Estate has raised approximately $3.8 billion of dedicated real estate capital and completed more than 108 transactions across 19 diverse real estate asset classes as of June 30, 2018.
"The hotel industry is growing rapidly and travel in the U.S. continues to break records. Choice Hotels is a major participant in that growth, and the Cambria Hotels brand has been a proven performer – that's why we entered into this LOI. We look forward to working with Choice for years to come and advancing the Cambria brand," said Steven Orbuch, President of Oz Real Estate.
Choice Hotels is in the process of identifying sites in key locations, as well as developers and management companies to build and operate these hotels, in anticipation of entering into a definitive agreement.
Cambria Hotels has nearly 120 properties open or in the pipeline, and the brand is expecting to set a record for openings for the second-straight year. Hotels have opened in several major markets this year, including Charleston, S.C., Nashville, Tenn., Phoenix, and Philadelphia. Future openings are planned in Austin, Texas; Baltimore; Boston; Houston; Miami; Milwaukee; Minneapolis; Orlando, Fla.; Napa, Calif.; San Francisco; and Washington, D.C.
Choice Hotels Continues Comfort Transformation
After unveiling a new logo for Choice Hotels International, Inc.'s flagship brand in May, the Comfort brands' transformation journey continues to advance. More than 450 hotels in the U.S. Comfort brand portfolio are in the process of obtaining new brand signage and completing renovations to guest rooms and common areas for an overall refreshed look and feel.
"We have focused on the guest from day one of this journey, and we are working diligently to bring a modern and lasting guest experience to all of our Comfort hotels," said Anne Smith, vice president, brand management and design at Choice Hotels. "The new logo signals change and welcomes travelers to experience the new Comfort. We continue to receive tremendous guest feedback – the future of the Comfort brand is bright."
The transformation began in 2012 and incorporated the Move to Modern initiative, which includes system-wide upgrades. All U.S. Comfort hotels are required to meet the Move to Modern standards by the end of 2019 and guests can expect to see the new signage by the end of 2020. In total, Choice Hotels and its franchisees will have invested $2.5 billion to deliver a more consistent, up-to-date guest experience, including:
- Refreshed lobbies and public spaces to provide more common areas for relaxing, working and gathering.
- Updated guest rooms with premium quality pillows, mattresses, and bedding.
- 100-percent smoke-free properties, making Comfort the largest smoke-free hotel brand in North America.
The Comfort brands' growth continues to accelerate with recent openings in primary markets, such as Asheville, N.C., Dallas, and Austin, Texas. The pipeline is nearly 300 hotels, 80-percent of which are new construction, and Choice has recently secured franchise agreements in Brooklyn, N.Y., Charlotte, N.C., and Phoenix.
"The Comfort brands' transformation strengthens its position as a leader in the upper midscale hotel segment. The investment made is driving increased developer interest and continued growth," said Brian Quinn, head of development, new construction brands, Choice Hotels. "The brand's rapid expansion is a testament to our commitment, expertise in the segment, and strong value proposition. We look forward to bringing the new Comfort to even more markets and continuing to stake our claim in the segment."
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
