Choice Hotels, CapStar Partner on Cambria Brand Project
- Mar 21, 2016
New York—Choice Hotels International Inc. has made another move in the continued expansion of its upscale Cambria Hotels & Suites brand with the formation of a strategic venture with CapStar Hotel Co. Together, the partners will execute a new conversion strategy for the 10-year-old brand, making adaptive reuse properties a key part of the development program.
Choice had a good year with the Cambria brand in 2015, inking 26 deals for new hotel locations. And the company ensured that Cambria got off to a good start in 2016 with the debut of the brand’s largest property yet, the 196-key Cambria Hotel & Suites NY-Times Square. It appears the select service hotel chain, which launched in 2005 and opened its first property in 2007, is resonating with travelers. “At Cambria, our customers are business and leisure travelers, largely Millennials, who want both great service at a reasonable price. That’s what we’ve done at Cambria, where we look to make each and every guest feel like a VIP,” a Choice Hotels International spokesperson told Commercial Property Executive.
Presently, the Cambria flag flies at 25 properties in 16 states, and an additional 30 hotels are under development in locations in the U.S. and Canada. And Choice and CapStar, taking the new conversion approach, will further bolster the Cambria portfolio in short order.
CapStar isn’t Choice’s first—that is, first partner on the Cambria brand expansion. Choice has been aggressive in its effort to increase Cambria’s presence, having joined forces with a series of companies over the years. In 2013, the hotel company entered into a joint venture with Fillmore Capital Partners, the brand’s first institutional investor, to develop Cambria properties. The following year, Choice established a relationship with Maplewood Hotels & Resorts to build new Cambria hotels in Canada. And the list goes on.
Choice isn’t sharing financial information on the CapStar partnership just yet, the company spokesperson said. However, in its annual report, Choice notes that if market conditions continue to be favorable, it anticipates investing approximately $250 million to $350 million to support the growth of the Cambria brand over the next three to five years.
Image courtesy of Cambria Hotel & Suites Times Square