Shares of Choice Hotels International, Inc. (CHH, Financial), a hotel franchisor in the economy and mid-scale segment, rose in the quarter. The company reported strong unit growth of its new Cambria brand and said it was in the process of completing its Comfort brand renovations. That should add to unit growth and revenue per available room in 2020. Management also accelerated its buybacks and received board authorization for additional share repurchases due to strong cash flow generation. Choice’s balance sheet remains strong, and we think Choice will soon experience an acceleration in growth.
From Ron Baron (Trades, Portfolio)'s Baron Focused Growth Fund third-quarter 2019 shareholder letter.
