US: Choice Hotels’ extended stay portfolio has achieved industry leading occupancy during March, April and May, with WoodSpring Suites achieving more than 70 per cent.
The brand portfolio includes WoodSpring Suites and Suburban Extended Stay in the economy segment, and MainStay Suites and the recently launched Everhome Suites in the midscale segment.
For the month of March, Choice Hotels’ extended stay brands achieved an average occupancy level of over 68 per cent, compared to the US hotel industry average of approximately 40 per cent. In April, the company’s extended stay portfolio attained a 60 per cent occupancy level, which more than doubled the industry average of 25 per cent. In May average occupancy of was 67 per cent.
Specifically, the WoodSpring Suites brand achieved an average occupancy rate of over 70 per cent in the month of May, making it one of the best-performing brands in the hotel industry in recent months. Choice’s extended stay brands also outperformed on RevPAR from March and April. Despite an industry-wide RevPAR decline of nearly 52 per cent in March and 80 per cent in April, RevPAR for the company’s extended stay brands declined less than 14 per cent and 29 per cent respectively.
Virtually all of Choice’s extended stay portfolio remained open during the month of April, through some of the worst weeks of the COVID-19 pandemic.
“Our extended stay brands continue to show that our proprietary operating model helps drive occupancy rates and deliver a higher return on investment for developers in practically any economic environment,” said Ron Burgett, senior vice president, franchise development, extended stay, Choice Hotels. “This growing market presents tremendous potential and opportunity for developers and lenders, as the extended stay segment currently accounts for 20% of demand in the industry, but existing supply only makes up nine per cent of the domestic hotel landscape. Whether they’re seeking a new construction or conversion brand, in economy or midscale, via single- or multi-unit agreements, we have several options for developers looking to capitalise on the incredible growth we’re seeing in extended stay.”
Choice reached a milestone in the first quarter of 2020 with 410 domestic extended stay hotels open, representing a nearly 10 per cent year-over-year increase, and currently has another 300 hotels in the pipeline. The company has opened 17 extended stay hotels so far in 2020. Choice expects to open its first Everhome property in the Los Angeles area in 2021.
“Our extended stay brands have shown their appeal time and time again for guests in search of a welcoming environment, convenient accommodations and affordable long-term rates – a demand that remains regardless of the broader travel environment,” said Anna Scozzafava, vice president, brand strategy and operations, extended stay, Choice Hotels. “Essential workers, for example, have long utilized extended stay hotels as a home base while traveling for work, and our brands were able to support that growing need during the COVID-19 pandemic. As consumer travel begins to recover, we are confident our extended stay brands will continue to attract and retain guests looking for versatile lodging options, with smartly designed suites and amenities they need, including fully equipped kitchens – whether they want to stay for a week, a month or even longer.”
</p
