Choice Hotels' extended stay pipeline grows by 12 percent year over year, with latest projects developed by Paladin Equity Capital
ROCKVILLE, Md., Nov. 14, 2023 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH) continues its growth in the extended stay segment with three new Everhome Suites under construction, and six more in various stages of development across the Southern California region. For the first nine months of 2023, Choice's extended stay hotel openings grew by 38 percent compared to the same period in 2022. Choice's extended stay domestic pipeline increased 12 percent year over year to over 47,000 rooms in the third quarter of this year. Choice currently has 60 Everhome Suites properties in the pipeline and over 250 across three other extended stay brands: MainStay Suites, Suburban Studios and WoodSpring Suites.
"With three new properties under construction in key California growth markets and six more Everhome Suites under development, Choice is continuing its leadership and growth in the extended stay segment," said Ron Burgett, senior vice president, franchise development, extended stay at Choice Hotels. "Despite challenges in new construction projects, our successful track record and strategic development approach, in collaboration with outstanding developers like Paladin Equity Capital, enable us to efficiently bring projects to fruition."
The new California properties under construction are Everhome Suites Temecula, Everhome Suites Ontario, and Everhome Suites San Bernardino. There's currently double the demand compared to the supply of extended stay hotels, and some of the largest areas in demand are in Los Angeles and San Bernardino. Paladin Equity Capital established the inaugural Everhome Suites in Corona, California in 2022, and is expanding with these three additional Everhome Suites and six additional projects in various stages of development.
The hotels under construction are slated to open in the second half of 2024 and early 2025. Each will feature spacious apartment-style rooms with well-defined areas that separate working from relaxing, as well as innovative, built-in ways for guests to customize the space. The hotel details are as follows:
"Choice Hotels has been an exceptionally supportive partner as we continue to build the Everhome Suites brand," said Philip Powers, partner at Paladin Equity Capital. "Our first Everhome Suites has been open for a year and really hit its stride. We have been in close collaboration with the Choice Extended Stay Brand and Marketing teams, working to effectively drive brand awareness and book long staying guests. Their highly sophisticated approach has been a huge asset and we're confident the next three opening in 2024 will be very successful."
Launched in 2020 as the industry's first new-construction midscale extended stay offering in nearly a decade, Everhome Suites is designed to empower guests to adapt their environment to the way they live and work during longer-term stays. These three hotels will offer the comforts of home plus many other convenient amenities, including:
With a well-segmented brand portfolio that includes new construction and conversion opportunities in economy and midscale extended stay, the success of Choice Hotels' extended stay brands is fueled by a dedicated team of extended stay experts, proven track record in the segment, and expansive growth potential. Current economic trends and fiscal policy provide tailwinds to support continued extended stay demand growth. These include the $1.2 trillion infrastructure bill, continued growth of remote work, fusion of business and leisure travel, relocations, and onshoring of industries fueled by the CHIPS Act.
Everhome Suites participates in Choice Privileges, the award-winning loyalty program where members earn points on eligible charges during their stay, which can be redeemed for reward nights at nearly 7,500 hotels across 22 brands located in 46 countries and territories worldwide. With the Choice Privileges Mastercard, members can earn more points faster, including on everyday purchases.
Choice Hotels, with a franchise-first focus and an industry-leading retention rate, has been committed to providing its hotel owners with the support they need to succeed since it launched the country's first hotel chain in 1941. Today, Choice offers franchisees a suite of cutting-edge cloud-based solutions, including the choiceEDGE guest reservation platform and the choiceADVANTAGE property management system to help franchisees effectively manage room rates, distribution channels, and inventory. Additionally, Choice University, the most widely awarded learning program in the hospitality industry, delivers customized and always evolving learning and development resources. From pre-opening to grand opening and every day forward, Choice provides hotel owners with best-in-class resources to help them maximize the return on their investment.
For more information on Everhome Suites development opportunities, visit https://choicehotelsdevelopment.com/everhome-suites.
Everhome Suites®: Closer to Home
The Everhome Suites brand provides a Closer to Home™ experience that enables guests to live life on their terms during longer-term stays. The newly constructed midscale hotels are designed to help extended stay guests maintain routine on the road with apartment-style suites featuring fully equipped kitchens, spa-like bathrooms and customizable "me" spaces, including movable workstations, full-size closets and additional storage. Everhome Suites properties have modern and sophisticated public spaces, 24/7 fitness centers with Peloton bikes, guest laundry facilities, free Wi-Fi and self-service marketplaces with a variety of fresh and frozen meal and grocery options. For more information, visit www.choicehotels.com/everhome-suites.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in the upscale segment and a leader in midscale and extended stay, Choice® has nearly 7,500 hotels, representing almost 630,000 rooms, in 46 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® loyalty program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
This communication includes "forward-looking statements" about future events, including anticipated hotel openings. Such statements are subject to numerous risks and uncertainties, including construction delays, availability and cost of financing and the other "Risk Factors" described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, any of which could cause actual results to be materially different from our expectations.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 1 Choice Hotels Circle, Suite 400, Rockville, MD 20850, email: development@choicehotels.com.
© 2023 Choice Hotels International, Inc. All Rights Reserved
SOURCE Choice Hotels International, Inc.
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