Choice Hotels Bolsters MainStay Suites Portfolio With Largest Conversion Deal In Brand History

Rhea-AI Summary

Choice Hotels International (NYSE: CHH) announced a significant franchise agreement with Gulf Coast Hotel Management, converting 15 MainStay Suites hotels in major U.S. markets, marking the largest multi-unit transaction in the brand's history. This expansion adds nearly 1,700 rooms, increasing the MainStay Suites domestic room count by over 35%. The move solidifies Choice's presence in the midscale extended stay segment, with nearly 100 open hotels and a growing pipeline of 130 properties. The new hotels feature apartment-style suites and essential amenities for long-stay guests.

Positive

• Largest multi-unit transaction in MainStay Suites history.
• Addition of nearly 1,700 rooms to the Choice Hotels portfolio.
• Increases MainStay Suites domestic room count by over 35%.
• Pipeline swells to almost 130 properties, indicating sustained developer interest.

Negative

• None.

ROCKVILLE, Md., Jan. 4, 2021 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH) has awarded franchise agreements to Gulf Coast Hotel Management, Inc. to convert 15 MainStay Suites hotels in major markets across the U.S., the largest multi-unit transaction in the brand's history. These properties, which have already begun welcoming guests, significantly increase the brand's foothold in the midscale extended stay segment.

These 15 hotels combined add nearly 1,700 rooms to the Choice Hotels portfolio and are located in the following cities:

• Centennial, Colorado
• Meriden, Connecticut
• Altamonte Springs, Florida
• Hoffman Estates, Illinois
• Schaumburg, Illinois
• Wheeling, Illinois
• Louisville, Kentucky
• Auburn Hills, Michigan
• Farmington Hills, Michigan
• Omaha, Nebraska
• Charlotte, North Carolina
• Greensboro, North Carolina
• Raleigh, North Carolina
• Blue Ash, Ohio
• Salt Lake City, Utah

"The addition of these 15 hotels increases our domestic MainStay Suites room count by over 35% and greatly improves the brand's position in the midscale extended stay segment," said Ron Burgett, senior vice president, franchise development, extended stay, Choice Hotels. "These agreements validate our strategic focus on the extended stay segment and the investments we have made in tailoring support, sales and training to drive performance and return on investment for developers — and they certainly have taken notice. That's why MainStay has grown to nearly 100 open hotels and the pipeline has swelled to almost 130 properties, further demonstrating sustained developer interest in our extended stay brands. Whether looking for new construction or conversion opportunities, we offer brands for everyone, including MainStay Suites, WoodSpring Suites, Suburban Extended Stay, and the newly created Everhome Suites."

These new MainStay Suites hotels were purposefully designed for long staying guests with spacious, apartment-style suites featuring fully equipped kitchens and hotel amenities such as fitness rooms, on-site marketplaces, and guest laundry facilities.

"We're thrilled to grow and expand our relationship with Choice Hotels by converting these 15 properties to the MainStay Suites brand, which add to the 23 WoodSpring Suites already managed by Gulf Coast, 22 of which we own," said Ian McClure, CEO, Gulf Coast Hotel Management, Inc. "Choice has really made its mark in the extended stay segment with economy and midscale brands that offer great value to both owners and guests. These hotels will be reimagined with a new operating model that emphasizes profitability, something Gulf Coast is laser focused on during this time."

For more information about Choice's extended stay development opportunities, visit choicehotelsdevelopment.com.

About MainStay Suites^®
MainStay Suites is an extended-stay hotel option that allows guests to live like home whether they're away for a week or a month. Each property offers a unique and distinctive experience for customers at an affordable price. Travelers can maintain their lifestyle during their stay with attractive amenities including residential style suites, free high-speed internet access, free continental breakfast, fitness center and weekly housekeeping and guest laundry services. There are over 70 MainStay Suites properties open across the United States, with 140 currently in the pipeline. To learn more, visit www.choicehotels.com/mainstay.

About Choice Hotels^®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. With more than 7,100 hotels, representing nearly 600,000 rooms, in over 40 countries and territories as of September 30, 2020, the Choice^® family of hotel brands provide business and leisure travelers with a range of high-quality lodging options from limited service to full-service hotels in the upscale, midscale, extended-stay and economy segments. The award-winning Choice Privileges^® loyalty program offers members benefits ranging from everyday rewards to exceptional experiences. For more information, visit www.choicehotels.com.

About Gulf Coast Hotel Management, Inc.
Gulf Coast Hotel Management, Inc. operates 38 hotels in 12 states and is dedicated to the high-level and professional operation of hotels to provide superior service and accommodations for our guests, personal and professional growth and a positive workplace for our associates and strong financial performance and return on investment for ownership. Our senior operations team of dedicated professionals brings decades of relevant experience and expertise and a track record of success in all areas of hotel operations. For more information, visit www.gulfcoasthm.com

Forward-Looking Statement
This communication includes "forward-looking statements" about future events, including anticipated development and hotel openings. Such statements are subject to numerous risks and uncertainties, including construction delays, availability and cost of financing and the other "Risk Factors" described in our Annual Report on Form 10-K and quarterly reports on Form 10-Q, any of which could cause actual results to be materially different from our expectations.

Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 1 Choice Hotels Circle, Suite 400, Rockville, MD 20850, development@choicehotels.com.

© 2021 Choice Hotels International, Inc. All rights reserved.

 

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SOURCE Choice Hotels International, Inc.

FAQ

What is the significance of the franchise agreement announced by Choice Hotels (CHH) on January 4, 2021?

The agreement represents the largest multi-unit transaction in the MainStay Suites brand's history, converting 15 hotels and adding nearly 1,700 rooms.

How much does the new franchise deal expand the MainStay Suites brand?

The deal increases the MainStay Suites domestic room count by over 35%.

How many MainStay Suites hotels are in the pipeline after the recent announcement by CHH?

The pipeline has expanded to almost 130 properties.

What type of amenities can guests expect at the newly converted MainStay Suites hotels?

Guests can expect spacious, apartment-style suites with fully equipped kitchens, fitness rooms, on-site marketplaces, and guest laundry facilities.

What impact does this franchise agreement have on Choice Hotels' position in the market?

It solidifies Choice Hotels' position in the midscale extended stay segment, highlighting their strategic focus on this area.