NORTH BETHESDA - Choice Hotels (NYSE:CHH) International (NYSE: CHH), a major hotel franchisor, has entered into an agreement with electric vehicle (EV) manufacturer Tesla (NASDAQ:TSLA) to provide Tesla Universal Wall Connectors at select hotel locations across the United States. This initiative will enable participating hotels under the Choice brand, including Radisson, Cambria, Comfort, and others, to install at least four charging stations for guest use.
The collaboration is aimed at addressing the increasing demand for EV charging facilities and enhancing the attractiveness of Choice Hotels for travelers who drive electric vehicles. The availability of charging options is anticipated to be a factor in driving bookings and potentially increasing revenue for hotel owners.
Choice Hotels, with a portfolio of over 7,500 hotels, has identified EV charging as a key amenity for its guests, 82% of whom arrived by car in 2022. The company's properties are strategically located, with the majority situated near highways, making them accessible for travelers seeking charging options.
Currently, 41% of the Cambria hotels under the Choice brand offer EV charging, with plans to equip all Cambria hotels with at least one charging station by the end of 2024. The company's corporate offices, including those in North Bethesda and Scottsdale, also provide EV charging facilities.
To facilitate the search for hotels with EV charging stations, ChoiceHotels.com and the Choice Hotels mobile app, both highly rated for user satisfaction, include an EV charging filter. Additionally, holders of Choice's co-brand credit cards can earn extra points when using the installed charging stations at Choice Hotels.
The information in this article is based on a press release.
InvestingPro Insights
Choice Hotels International's (NYSE: CHH) recent strategic move to partner with Tesla for installing EV charging stations is not only a nod towards sustainability but also aligns with the company's impressive financial performance and commitment to shareholders. According to real-time metrics from InvestingPro, Choice Hotels boasts a market capitalization of approximately $5.94 billion, underscoring its significant presence in the hospitality sector. The company's P/E ratio stands at 21.67, reflective of investor confidence in its earnings potential.
InvestingPro Tips highlight that Choice Hotels operates with a moderate level of debt and has been successful in maintaining dividend payments for an impressive 20 consecutive years, which speaks to its financial stability and reliability as an investment. In addition, the company's management has been actively engaged in share buybacks, signaling a bullish outlook on its own stock. With a gross profit margin of approximately 90.64% over the last twelve months as of Q1 2023, Choice Hotels demonstrates exceptional operational efficiency, which is crucial in the competitive hospitality industry.
For investors interested in gaining deeper insights into Choice Hotels' financial health and stock performance, InvestingPro offers additional tips such as the stock's low price volatility and its high revenue valuation multiple. To explore these insights and more, you can use the coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription. There are 9 additional InvestingPro Tips available that could help investors make more informed decisions about their investments in Choice Hotels.
As Choice Hotels continues to innovate by integrating EV charging stations into its amenities, it remains a noteworthy player in the hospitality industry with a solid financial foundation and a forward-looking approach to guest services and shareholder value.
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