Choice Hotels International Hits 500 Extended Stay Properties, Underscoring Growth in This Dynamic Sector
Choice Hotels International, Inc. (NYSE: CHH) is proud to announce a significant milestone in its strategic expansion: the inauguration of its 500th extended stay property, the Everhome Suites located in Glendale, Arizona. This achievement underscores the company’s strong position within the economy and midscale extended stay segments, fueled by its dedication to both new construction and conversion projects.
The company’s focused approach to extended stay development is directly in line with the rising demand for accommodations lasting seven nights or more. According to August 2024 STR Pipeline Data, Choice Hotels boasts the fastest-growing economy extended stay portfolio in the hospitality industry and leads in new constructions within this category. With over 350 hotels currently in development across its four extended stay brands—Everhome Suites, WoodSpring Suites, Suburban Studios, and MainStay Suites—Choice Hotels is actively shaping the future of extended stay accommodations.
“Reaching 500 open extended stay properties is a testament to our strategic focus on this high-growth category, our proven operating model, and our reliable brand prototypes—all of which position Choice Hotels as a leader in the industry,” remarked Patrick Pacious, President and CEO of Choice Hotels International. “As we continue our expansion, we remain committed to collaborating with developers to deliver high-quality, cost-effective properties that ensure an exceptional experience for long-staying guests and deliver unparalleled financial returns.”
Glendale’s Everhome Suites: A Prime Location for Extended Stays
The new Everhome Suites in Glendale represents the brand’s entry into a vibrant and growing region in the Southwest. Situated along the picturesque New River, the hotel boasts scenic views and a riverwalk. Its strategic location near key locations such as Luke Air Force Base, Arizona State University West Valley Campus, State Farm Stadium, Desert Diamond Casino, and St. Joseph’s Westgate Medical Center makes it an ideal choice for long-term lodging. This property is expected to cater to the increasing number of workers involved in significant infrastructure projects, further boosting the local economy.
Continued Expansion and Success Across Brands
Beyond Glendale, Choice Hotels is actively expanding its extended stay presence across the nation. With the Glendale opening, Choice Hotels now operates six Everhome Suites, with over 65 more in the pipeline, including over 20 currently under construction and over 15 slated to open within the next year. WoodSpring Suites is also poised for another record-breaking year with an anticipated 25 new openings by year-end. Additionally, between January 1 and September 2024, the company launched 13 MainStay Suites and Suburban Studios in vital markets such as Las Vegas, Moreno Valley, California, Orlando, and Tampa, Florida.
“Our dedicated team of experts understands where there is unmet demand in the extended stay market and provides top-tier support for our franchisees, from site selection to daily operations,” stated Matt McElhare, Vice President and Segment Lead for Extended Stay Brands at Choice Hotels International. “We take immense pride in being leaders in one of the fastest-growing segments of the hospitality industry and are excited about the prospect of opening our next 500 extended stay hotels.”
Data-Driven Growth and Strong Partnerships
Choice Hotels leverages its proprietary Choice Maps platform to analyze data using advanced AI and data science tools. This data-driven approach allows the company to pinpoint optimal sites in high-demand markets for its properties. The company’s success is also rooted in its strong partnerships with developers. The WoodSpring Suites brand’s development has served as a blueprint for the extended stay portfolio, featuring a lean staffing model and optimized operational efficiencies aimed at maximizing gross operating profit (GOP) for owners. WoodSpring Suites has been recognized as the top-performing brand in the extended stay sector, receiving accolades from J.D. Power as the #1 economy extended stay brand in 2024, 2023, and 2022, achieving an impressive average GOP of 55.5% in 2023.
Continuous feedback from owners and operators has enabled the company to refine its extended stay offerings. This has led to a model that allows rapid conversions for MainStay Suites and Suburban Studios in as little as three to four months, facilitated by proprietary innovations like “Kitchen and Lobby in a Box” and efficient new build prototypes for Everhome Suites and WoodSpring Suites.
“This milestone marks just the beginning of our growth journey,” remarked Ron Burgett, Senior Vice President of Extended Stay Development at Choice Hotels. “By collaborating closely with our network of developers, we design the best possible products for the extended stay market, and we are poised for continued expansion.”
Looking Ahead: A Bright Future for Choice Hotels
With the demand for extended stay accommodations consistently exceeding supply, Choice Hotels’ focus on innovation, data-driven decision making, and strong developer partnerships positions the company for continued success. The company’s commitment to providing high-quality, cost-effective properties tailored to the needs of long-staying guests will undoubtedly drive further expansion and solidify Choice Hotels’ leadership position in the extended stay market.