Choice Hotels International, Inc. (NYSE: CHH) opened a company record, six WoodSpring Suites hotels during the month of May. These openings, which were led by a dedicated, extended stay team, account for 732 new economy extended stay rooms from coast to coast and 1,414 total new rooms for the brand since the start of 2023, with nearly 38,000 rooms in the domestic pipeline.
As interest in extended stay from traditional hoteliers and larger commercial real estate developers picks up—due to the historical outperformance of extended stay hotels verses traditional hotels (average 15% occupancy premium), higher profitability, and more efficient operating model—Choice remains a leader in the sector. WoodSpring Suites is growing rapidly across the country, accounting for approximately 94% of the economy extended stay rooms under construction at the end of 2022.
"While others are just now entering the segment, we have a track record of success. Our dedicated team of extended stay experts—which is now more than 60 strong—has established a proven model, proven performance, and proven exit of a brand like WoodSpring" said Ron Burgett, senior vice president of extended stay development. "We breathed new life into WoodSpring Suites with our acquisition in 2018 and have since designed a smart development model that brings projects to market quickly while streamlining operational costs. These hotels are now opening and with demand for this segment outpacing supply by nearly two to one, plus continued interest from institutional investors, we're going to keep opening WoodSpring Suites across the country."
The six new and prototypical WoodSpring Suites span coast to coast:
- WoodSpring Suites Rochester Greece (New York) Opened May 4
- WoodSpring Suites Austin Central (Texas) Opened May 8
- WoodSpring Suites Roanoke (Virginia) Opened May 19
- WoodSpring Suites Libertyville (Illinois) Opened May 23
- WoodSpring Suites West Palm Beach (Florida) Opened May 24
- WoodSpring Suites Bellflower - Los Angeles (California) Opened May 25
Despite more challenging lending and supply chain conditions, Choice's extended stay brands continue to expand their national footprint with the domestic pipeline reaching nearly 500 units at the end of 2023 Q1, a 28% increase YoY.
Choice's extended stay lineup currently features WoodSpring Suites and the newly refreshed Suburban Studios brands in economy extended stay, as well as midscale brands MainStay Suites and Everhome Suites—the first new midscale extended stay brand in nearly a decade when its Corona, California location opened in September 2022.