Choice Hotels International announced a deal Thursday with Noble Investment Group to develop nine WoodSpring Suites hotels in Georgia and South Carolina in the next two years, according to a news release.
Choice CEO Pat Pacious said during the company’s 2022 third-quarter earnings call that investments in WoodSpring Suites’ marketing and distribution capabilities led to a 28% growth in revenue per available room compared to 2019 levels.
“Overall, we remain very optimistic about our extended-stay segment growth and expect the number of our extended-stay units to increase at an average annual growth rate of more than 10% over the next five years,” he said.
WoodSpring Suites, an economy extended-stay brand, was acquired by Choice in 2018 for $231 million, and has more than 240 hotels in the U.S. in its portfolio.
David Pepper, chief development officer for Choice, said the company has been a leader in the extended-stay segment since its acquisition of the brand four years ago.
“Choice Hotels not only breathed new life into this category — innovating new ways to deliver exceptional value to extended-stay developers and longer-term guests — but successfully demonstrated our ability to take the industry's largest economy extended-stay brand to even greater heights," he said in the news release. "Our continued work with institutional investors like Noble is a key component of this success.”
Ben Brunt, Noble’s chief investment officer, said in the news release that the real estate investment trust “continues to add substantial scale to [its] extended-stay travel and hospitality platform.”
“WoodSpring Suites has an outstanding track record of high performance across economic cycles, and we are pleased to welcome these new investments into our portfolio,” he said.
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