Is it a Good Choice to Invest in Choice Hotels International (CHH)?

Baron Funds, an asset management firm, published its “Baron Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of 6.56% was delivered by the fund’s institutional shares for the fourth quarter of 2021 and 15.84% for the year. This exceeded the Fund’s primary benchmark, the Russell 2000 Growth Index (the “Benchmark”), which gained 0.01%. The S&P 500 Index, which measures the performance of publicly-traded large-cap U.S. companies, gained 11.03% during the period. For the full year, the Fund gained 20.15%, meaningfully exceeding its Benchmark, which gained 2.83%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Growth Fund, in its Q4 2021 investor letter, mentioned Choice Hotels International, Inc. (NYSE: CHH) and discussed its stance on the firm. Choice Hotels International, Inc. is a Rockville, Maryland-based hospitality company with an $8.1 billion market capitalization. CHH delivered a -6.58% return since the beginning of the year, while its 12-month returns are up by 33.75%. The stock closed at $145.72 per share on February 14, 2022.

Here is what Baron Growth Fund has to say about Choice Hotels International, Inc. in its Q4 2021 investor letter:

“Shares of Choice Hotels International, Inc., a franchisor of economy and midscale hotels, increased in the quarter on a rebound in its business due to a surge in leisure travel and work-from-anywhere arrangements that allowed people to combine work and pleasure. Revenue per available room surpassed 2019 levels, and unit growth accelerated overall and among higher-revenue-generating segments like its Cambria and Ascend brands, producing strong earnings and a robust balance sheet.”

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Our calculations show that Choice Hotels International, Inc. (NYSE: CHH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CHH was in 17 hedge fund portfolios at the end of the third quarter of 2021, compared to 15 funds in the previous quarter. Choice Hotels International, Inc. (NYSE: CHH) delivered a -2.70% return in the past 3 months.

In April 2021, we published an article that includes CHH in the 15 Best Luxury Hotels in the World. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.