Shares of global hotel franchisor Choice Hotels International, Inc. (CHH, Financial) increased in the quarter when the company forecast an acceleration in unit growth, primarily from its new Cambria and Ascend Collection brands. Recent renovations at its Comfort hotels should also boost revenue per available room as Comfort is one of the company’s largest brands. Choice has a strong balance sheet and should be in a good position to mitigate the effects of a downturn should there be one given its asset-light, fee-based business model.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund fourth-quarter 2019 shareholder letter.
