Dive Brief:
- Choice Hotels International continued its extended stay portfolio expansion with four recent Everhome Suites openings in Texas, and two more are slated to debut in the state this summer, the hotel company announced earlier this week.
- Choice also broke ground on an Everhome property in Oregon last month and has several more brand hotels in the pipeline. The newly opened and under-construction hotels are in partnership with Choice’s long-term development partner, Denver-based Highside Companies.
- Extended stay has been a focus area for Choice in recent years, as the product type remains highly desirable to hotel owners and developers. As economic uncertainty intensifies, extended stay continues to show promise for stable growth, company leadership noted during a first-quarter earnings call.
Dive Insight:
Since the start of this year, Choice has opened four Everhome Suites hotels in Bastrop, Waco, Brownsville and El Paso, Texas. Two more branded properties are slated to open in the state later this year, one in Amarillo next month and the other in Georgetown in September.
Choice has an Everhome Suites under construction in Yuma, Arizona, that is set to open in July as well. And the hotel company broke ground on a branded hotel in Salem, Oregon, last month, which will open later this year. Next month, Choice plans to break ground on an additional Everhome Suites in Dayton, Ohio.
Nationwide, the company is “seeing strong developer interest in Everhome Suites and consistent demand for midscale extended stay accommodations,” Ron Burgett, senior vice president of extended stay development at Choice, said in a statement.
The Everhome Suites rooms offer “the comforts of home,” including fully equipped kitchens, spa-style bathrooms and in-unit laundry, according to Choice. The properties are also located in markets with a diverse range of extended stay demand drivers, which Choice prioritizes when plotting growth, Matt McElhare, the company’s lead for extended stay brands, told Hotel Dive earlier this year.
Everhome Suites Bastrop, for example, benefits from proximity to several high-profile employers like Starlink and The Boring Co., according to Choice. The Waco hotel, meanwhile, caters to travelers coming to Baylor University, regional hospitals like Baylor Scott & White Medical Center as well as manufacturers and development facilities in the area including AbbVie and SpaceX.
Choice has 14 Everhome Suites open, 19 under construction and more than 60 in the pipeline. The brand is on track to have nearly 25 hotels open by year-end, according to the release.
The hotel company’s domestic extended stay portfolio grew 10.8% year over year in Q1, supported by 6.8% year-on-year RevPAR growth in the quarter. However, Choice downgraded its 2025 RevPAR growth outlook amid mounting economic uncertainty.
Extended stay will remain an area of focus for Choice, as it is one of the segments with the highest developer and guest demand, CEO Patrick Pacious said during a Q1 earnings call.
Other expanding midscale extended stay brands include Marriott International’s StudioRes and YourSpace.
