ROCKVILLE, Md., Sept. 24, 2018 — Building on Choice Hotels International, Inc.'s (NYSE: CHH) dedication to the growth of its upscale Cambria Hotels brand, the company entered into a letter of intent (LOI) with an affiliate of Oz Real Estate, the real estate platform of Oz Management (NYSE: OZM), that sets forth a framework for a co-investment platform to accelerate the development of Cambria Hotels throughout the United States.
"The Cambria Hotels brand continues to drive success for Choice Hotels and, as evidenced by signing this LOI, we are attracting some of the largest institutional real estate investment groups in the world. The LOI with Oz Real Estate signals our companies' commitment to the brand through a contemplated 50-50 joint-venture agreement that could result in building as many as 50 Cambria Hotels in strong corporate travel markets," said David Pepper, chief development officer, Choice Hotels. "We believe this will propel the Cambria brand to the next level and rapidly deliver Choice's sought-after upscale brand."
To help support this planned joint venture and other growth opportunities for Cambria Hotels, the Choice Hotels Board of Directors has authorized an additional $250 million in capital investment.
Oz Real Estate invests in both opportunistic real estate private equity and real estate credit in the U.S and Europe. Founded in 2003, Oz Real Estate has raised approximately $3.8 billion of dedicated real estate capital and completed more than 108 transactions across 19 diverse real estate asset classes as of June 30, 2018.
"The hotel industry is growing rapidly and travel in the U.S. continues to break records. Choice Hotels is a major participant in that growth, and the Cambria Hotels brand has been a proven performer – that's why we entered into this LOI. We look forward to working with Choice for years to come and advancing the Cambria brand," said Steven Orbuch, President of Oz Real Estate.
Choice Hotels is in the process of identifying sites in key locations, as well as developers and management companies to build and operate these hotels, in anticipation of entering into a definitive agreement.
Cambria Hotels has nearly 120 properties open or in the pipeline, and the brand is expecting to set a record for openings for the second-straight year. Hotels have opened in several major markets this year, including Charleston, S.C., Nashville, Tenn., Phoenix, and Philadelphia. Future openings are planned in Austin, Texas; Baltimore; Boston; Houston; Miami; Milwaukee; Minneapolis; Orlando, Fla.; Napa, Calif.; San Francisco; and Washington, D.C.
Cambria Hotels is franchised by Choice Hotels. For Cambria hotel development opportunities, visit choicehotelsdevelopment.com/cambriahotels.