Choice Hotels International has signed a deal with real estate investment firm ServiceStar Capital Management to develop 21 of Choice’s new Everhome Suites extended-stay hotels.
The deal with Colorado-based ServiceStar represents the largest yet for the new midscale extended-stay brand, according to a news release. It will expand the brand’s presence across the U.S. with hotels planned for Colorado, Arizona, Utah, Nevada and Florida over the next few years. The new-construction, extended-stay brand is aimed at longer-stay guests.
Choice Hotels President and CEO Pat Pacious said in the release the extended-stay segment has shown resiliency and high returns through any operating environment.
"Everhome is on the cusp of major growth, with the first hotel on track to open this month and over 30 others already under development,” he said. “The key to the brand's continued success is our ongoing collaboration with growth-minded investors/developers like ServiceStar, whose commitment fuels our shared goal of providing new hotels in the right markets that meet the needs of longer-staying guests."
ServiceStar and its development partners are also working with Choice on developing more than 50 WoodSpring Suites, another of Choice’s extended-stay brands, to add to their existing portfolios.
Choice, already a major player in the extended-stay hotel space, announced the Everhome Suites brand at the 2020 Americas Lodging Investment Summit. At the time, developer Paladin Group had already broken ground on the first property in Corona, California. The property’s website shows guests can start booking at the Everhome Suites Corona starting Sept. 26.
The prototypical Everhome Suites will have approximately 114 guestrooms that range in size from 324 square feet for king bed studio suites to 658 square feet for one-bedroom suites.
During the Hunter Hotel Investment Conference this year, Choice’s Vice President of Upscale Brands Janis Cannon spoke about the company's commitment to the extended-stay space in an interview with HNN. The rebranding of the company’s Suburban Extended Stay Hotel brand to Suburban Studios would fit with today’s extended-stay traveler, she said.
“Extended stay has always been a priority focus for Choice Hotels. ... During the pandemic, it really showed the strength of the extended-stay brands because there’s leisure travel, and it was also longer length of stay,” Cannon said. “We see huge potential with the new Suburban Studios.”