Choice Hotels Expands Ascend Collection in Canada, Shares Jump 5%

Choice Hotels International, Inc. CHH is continuing to expand its footprint in the global hospitality sector. Following the full integration of Choice Hotels Canada, the company is accelerating its development efforts with the planned opening of six new upscale properties under its Ascend Collection brand in Québec in early 2026. Following the news, shares of CHH gained 5.3% during trading hours yesterday.

This expansion marks one of the first significant initiatives since the consolidation and underscores Choice Hotels’ commitment to broadening its presence in high-demand destinations while enhancing its upscale offerings. The new properties will deepen the Ascend Collection’s presence in Montréal and key resort areas, supporting broader loyalty program engagement and contributing to the company’s international growth trajectory.

The initiative also establishes a platform for further expansion across Canada, positioning the region as a meaningful long-term growth driver and a source of revenue diversification for the company.

Scaling the Ascend Collection in Canada

This expansion is underpinned by strong underlying market performance, with Choice Hotels delivering solid operating results in Canada, highlighted by a 7% year-over-year increase in revenue per available room (RevPAR) in the third quarter of 2025. The addition of these properties will expand the Ascend Collection’s Canadian footprint by approximately 20%, enhancing brand visibility and competitiveness in high-demand markets.

The six Québec properties comprise a diverse portfolio of roughly 650 rooms across urban, boutique and resort formats. The portfolio includes Montréal city hotels with chateau-inspired suites, in-room fireplaces and fully equipped kitchens; family-oriented and resort destinations offering pools, spas, children’s facilities, chalets and unique outdoor lodging; and boutique and mountain resorts featuring lakeside settings, extensive recreational amenities and 18-hole golf courses.

Choice Hotels’ Footprint Expansion Initiatives

Choice Hotels remains confident in the accelerated expansion of its international portfolio. Beyond Canada, the company is pursuing aggressive growth across EMEA, the Caribbean and Latin America, and Asia-Pacific, with particularly strong momentum in France, Spain, China and Australia. Management expects international operations to be the fastest-growing earnings contributor and is targeting a doubling of international adjusted EBITDA by 2027.

In the United States, footprint expansion is being driven primarily through brand conversions, enabling faster, more capital-efficient growth while limiting exposure to new construction risk. Extended-stay brands such as Everhome Suites and MainStay Suites continue to serve as key growth platforms, supported by resilient demand from business travelers and long-stay segments. Collectively, these initiatives position Choice Hotels to penetrate high-potential markets and further strengthen its global brand presence.

CHH’s Stock Price Performance

Shares of CHH have gained 23.4% in the past month, outperforming the Zacks Hotels and Motels industry’s 9.8% growth. The company is well positioned to benefit from continued unit expansion, franchising initiatives and the integration of Choice Hotels Canada, including the transition to a direct franchising model. However, near-term headwinds persist, including softness in U.S. RevPAR trends and an uncertain macroeconomic environment.

CHH’s Zacks Rank & Key Picks

Choice Hotels currently carries a Zacks Rank #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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