Choice Hotels-Bluegreen Join Forces (BXG) (CHH) (HOT) (IHG)

Zacks

Silver Spring, Maryland-based Choice Hotels International Inc. (CHH) recently inked a marketing agreement with Bluegreen Corporation’s (BXG) operational arm Bluegreen Vacations and Bluegreen Resorts Management, Inc. This association is the first ever relationship Choice Hotels has entered into with a timeshare company.

By virtue of this alliance, the company will be in charge of 21 Bluegreen Vacation Club Resorts. Choice Hotels will be operating these 21 resorts under its Ascend Hotel Collection brand across various travel destinations including Aruba, Las Vegas, Miami, Orlando, Cape Cod, Phoenix, Savannah, Ga. and Myrtle Beach, S.C.

As per the agreement, the timeshare company, Bluegreen Vacations will be engaged in offering vacation ownership services to the company.

The latest properties from Ascend Hotel Collection will offer various options for entertainment including beach, golf, city, family, gaming, culinary, historical and eco tourism. These resorts will feature fitness centers, spa services, restaurants, lounges and various other amenities.

With this agreement, the members of Bluegreen Vacations’ TravelerPlus facility will be able to avail the company’s Choice Privileges program, which ensures free accessibility to 75 Ascend Hotel Collection and 6,200 Choice hotels.

Ascend Hotel Collection, the upscale boutique style property, currently operates 95 hotels worldwide with seven hotels based in Canada and the rest in Latin America and Scandinavia. During 2012, Ascend Hotel Collection collaborated with eight companies and penned 21 new membership contracts in developed markets. Exiting first-quarter 2013, the brand will have nearly 100 properties internationally and 24 membership contracts.

Recently, Choice Hotels added a new property named Postcard Inn hotel under its Ascend Hotel Collection brand in St. Pete Beach, Florida. It has also entered into agreements for launching new hotels in North and South Carolina. Further, the company is planning to expand its foothold in Carmel, and Napa, CA., and Sedona, AZ.

Management stated that this agreement would help further enhance the company’s upscale brands and extend its coverage in the leading markets.

Choice Hotels carries a Zacks Rank #1 (Strong Buy). Various other hoteliers who are also trying to expand their businesses further include Starwood Hotels & Resorts Worldwide Inc. (HOT) and Intercontinental Hotels Group plc (IHG). All these stocks also carry a Zacks Rank #1 (Strong Buy).

BLUEGREEN CORP (BXG): Free Stock Analysis Report

CHOICE HTL INTL (CHH): Free Stock Analysis Report

STARWOOD HOTELS (HOT): Free Stock Analysis Report

INTERCONTL HTLS (IHG): Free Stock Analysis Report

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