Choice Hotels targets multiunit developers for Cambria expansion

Choice Hotels International, franchisor of Cambria Hotels, recently began a new effort centered on multiunit development to more rapidly grow the brand. On the heels of opening its 10th property in 10 months earlier this year, the expanded approach will use part of $475 million in capital support the company has earmarked for the Cambria brand to target developers that will build multiple properties.

“The Cambria brand is coming off a record year of growth in 2017 and progress continues. While we will continue to invest in individual projects, we are experiencing strong demand from the development community as well as institutional capital partners who want to develop and invest in multiple projects with us,” Mark Shalala, VP of development, upscale brands at Choice Hotels, said in a statement. “Taking a more programmatic investment approach with multiunit developers is a winning strategy. It can dramatically help accelerate growth while driving product and operational consistency across the chain. This helps increase brand equity for our owners and, most importantly, it improves the overall guest experience from market to market. For our developers, this approach establishes a consistent investment platform and level of capital participation from Choice. It helps improve return on investment and can make it easier to raise equity and secure debt for their projects, a critical factor at this point in the cycle.”

As a part of the investment strategy, Choice will be teaming up with several developers to expand the Cambria brand, including Four Raines Development and Fillmore Capital Partners.

“Cambria Hotels is a tremendous product that guests love, and our collaboration with Choice, which provides everything imaginable, is second to none. We have worked closely for several years now and our familiarity with one another makes it an easy decision to agree to build more hotels together,” Grey Raines, managing partner of Four Raines Development, said in a statement.

There are now nearly 120 Cambria hotels open or in Choice's development pipeline. The latest Cambria openings include a mix of new-construction and adaptive-reuse projects:

  1. Cambria Hotel Phoenix Chandler – Fashion Center (opened Jan. 31, 2018) – Located near loops 101 and 202, the 136-room property is part of the Chandler Viridian, a 25-acre mixed-use development project that includes office space, luxury apartments, retail offerings and a pedestrian promenade to the Chandler Fashion Center.
  2. Cambria Hotel Nashville (opened Jan. 16, 2018) – The 255-room hotel is located in the city’s South of Broadway neighborhood and is a short distance from attractions such as the Music City Center, Bridgestone Arena, Nissan Stadium and Historic Broad Street.
  3. Cambria Hotel Dallas (opened Dec. 31, 2017) – The 177-room property is an adaptive-reuse project, formally known as the historic Tower Petroleum building, located near businesses and leisure attractions in downtown Dallas.
  4. Cambria Hotel North Scottsdale (Ariz.) Desert Ridge (opened Dec. 21, 2017) – Minutes from downtown Phoenix, the 130-room hotel is situated in Desert Ridge, which offers shopping and dining options at the intersection of Highway 101 and Tatum Boulevard.
  5. Cambria Hotel Westfield (Ind.) (opened Dec. 19, 2017) – Part of the Westfield Grand Park Village, the 152-room property is located across from Westfield's Grand Park Sports Campus, and a short drive from downtown Indianapolis. 
  6. Cambria Hotel Downtown Asheville (N.C.) (opened Dec. 16, 2017) – The 136-room hotel offers guests rooftop views of Asheville’s Blue Ridge Mountains, and is located near the city’s award-winning craft breweries, restaurants, art galleries and music venues.
  7. Cambria Hotel New Orleans Downtown Warehouse District (opened Oct. 10, 2017) – Situated in the heart of the Arts and Warehouse District, the 162-room property is walking distance from the French Quarter and minutes from the New Orleans Convention Center.
  8. Cambria Hotel Newport (R.I.) (opened June 9, 2017) – The 143-room hotel offers guests picturesque waterfront views and is a short distance from Easton’s Beach, the Naval Station and the Newport mansions.
  9. Cambria Hotel Chicago Loop – Theatre District (opened May 25, 2017) – Situated above the historic Ford Center for the Performing Arts Oriental Theatre, 199-room hotel is the brand's first adaptive reuse project and includes décor that pays tribute to the building's past and unique design features.
  10. Cambria Hotel Los Angeles – LAX (opened May 1, 2017) – The 152-room property is the brand’s first hotel on the West Coast, and includes design elements inspired by the surrounding city. The property is minutes from Los Angeles International Airport.

“The Cambria brand is experiencing explosive growth,” Janis Cannon, SVP, upscale brands at Choice Hotels International, said in a statement. “Progress of this scale and speed is the result of our tremendous development collaborators as well as the demands of modern travelers who love the stylish, yet approachable Cambria brand. We’re starting off strong in 2018 with openings in Nashville and Philadelphia, and we look forward to bringing our great product to more guests’ favorite cities, including Boston before the end of the year.”

Future openings are planned in Austin, Texas; Burbank, Calif.; Baltimore; Calabasas, Calif.; Charleston, S.C.; Houston; Miami; Milwaukee; Minneapolis; Napa, Calif.; Orlando; San Francisco; Tampa, Fla.; and Washington, D.C.