LOS ANGELES — The continued high cost of construction is expected to make growth via conversions more of a focus for Extended Stay America this year.
Mark Williams, managing director of franchise development for the company, said conversions also have the advantage of getting new hotels online significantly faster.
"We look at conversion as being a good opportunity for us because of struggling interest rates, cost of construction and conversions will be good for us because to if you're doing new construction it's a three-year process," he said. "If I'm doing a conversion, from time I signed the deal, I can get that open in six to eight months. We're to market a heck of a lot faster. And the the cost to the owners is considerably less. They already own the asset."
In recent years, ESA has launched two new brands — Extended Stay America Select Suites and Extended Stay America Premier Suites — the former of which Williams says is especially conversion-friendly.
Extended Stay America still has a significant pipeline that includes new-construction properties — which has been the primary growth vehicle for the Premier Suites brand.
"We've got a number of assets, probably around 20, that will open in 2025, and our pipeline will continue to grow in '26 with what we've already got signed and on the books and ready to go," he said.
For more from HNN's interview with Extended Stay America's Mark Williams, which includes discussions on broad industry expectations for 2025, the types of investors interested in the extended-stay segment and more, watch the video above.