Everhome Suites Continues Sustained Growth Across the Southwest with Six Groundbreakings

Rhea-AI Summary

Choice Hotels International, Inc. (CHH) leads in extended stay with six new groundbreakings in Texas and Arizona. The Everhome Suites brand is designed for longer-term stays, with properties featuring spacious apartment-style rooms, fully equipped kitchens, spa-style bathrooms, and customizable work and relaxation spaces. The properties are expected to open in 2024 and 2025, catering to the growing demand for extended stay accommodations in the Southwest.

Insights

Market Research Analyst

The expansion of Choice Hotels through the Everhome Suites brand in the Southwest, particularly in Texas and Arizona, indicates a strategic move to capitalize on economic growth and the rising demand for extended stay accommodations. These regions are experiencing significant development in various sectors such as medical, manufacturing and space exploration, which could lead to an increase in long-term business and leisure travel. The locations chosen for the new hotels are in proximity to major highways, hospitals, universities and tourist attractions, which could enhance their attractiveness to potential guests.

From a market research perspective, the growth of the extended stay segment is a response to a market need for more flexible, home-like accommodations for travelers who require longer-term lodging. Extended stay properties tend to have higher occupancy rates and provide more stable revenue streams compared to traditional hotels because guests often stay for weeks or months rather than days. This can be particularly appealing for investors and stakeholders looking for consistent returns.

Moreover, the introduction of the Everhome Suites brand as the industry's first new-construction midscale extended stay offering in nearly a decade suggests that Choice Hotels is attempting to fill a niche in the midscale market. This could potentially disrupt the current market dynamics by offering a fresh alternative to existing extended stay accommodations, which are often either economy or upscale.

Financial Analyst

The investment by Choice Hotels in the development of new Everhome Suites properties is a significant financial commitment that is likely to have a direct impact on the company's capital expenditure and future revenue streams. The success of this investment hinges on the sustained growth of the extended stay market and the ability of these properties to attract and retain guests over time.

Financially, the extended stay model typically offers higher margins due to lower operational costs, as services like daily housekeeping are often reduced. Additionally, the partnership with HighSide Companies, a frequent collaborator, may provide financial synergies and risk-sharing benefits. The strategic location of these properties in economically thriving areas could lead to a strong market penetration and a solid customer base, contributing to the overall financial health of Choice Hotels.

Investors and analysts will be monitoring the construction progress and pre-opening sales figures closely to gauge the potential return on investment. It is also important to consider the competitive landscape and the potential response from other hotel chains in the extended stay market.

Hospitality Industry Expert

The hospitality industry is highly competitive, with different brands vying for market share by targeting various customer segments. Choice Hotels' focus on the extended stay segment through the Everhome Suites brand reflects an understanding of the unique needs of guests looking for longer-term accommodation options. The brand's emphasis on apartment-style rooms with full kitchens and customizable spaces aligns with the current trend towards personalization and flexibility in guest experiences.

Additionally, the integration of technology in the form of the choiceEDGE guest reservation platform and the choiceADVANTAGE property management system demonstrates Choice Hotels' commitment to innovation. These tools can help franchisees to effectively manage their properties, which is crucial for maintaining high service standards and optimizing revenue.

The hospitality industry expert would also note the importance of loyalty programs like Choice Privileges, which can drive repeat business and create a loyal customer base. The program's integration with the Everhome Suites brand could be a key factor in encouraging guests to choose these properties over competitors.

Choice Hotels continues to lead in extended stay, with latest Texas and Arizona groundbreakings  

NORTH BETHESDA, Md., Feb. 1, 2024 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH) continues its leadership in extended stay with five Everhome Suites breaking ground in Texas cities including Amarillo, Bastrop, Brownsville, El Paso, and Waco, and one groundbreaking in Yuma, Arizona. Driven by a thriving economy, diverse business landscape, favorable climate, and a steady influx of travelers, the Southwest presents an unparalleled opportunity for both business and leisure travelers seeking extended stay accommodations.

"With over 60 Everhome Suites in our pipeline and six new groundbreakings across the Southwest, Choice continues to capture growing demand for extended stay properties in the region. Our leadership in extended stay is made possible by Choice's expert team of dedicated professionals, in collaboration with our outstanding group of developers and franchisees like the HighSide Companies," said Ron Burgett, senior vice president of franchise development for extended stay at Choice Hotels.

The Texas and Arizona hotels are being developed in conjunction with HighSide Companies. A frequent Choice Hotels collaborator, HighSide has eight projects under construction and plans to start construction on more Everhomes across multiple U.S. markets by the end of 2024. "Choice has been a great partner, and we are big believers in the Everhome Suites brand. We are looking forward to adding these new properties in strategic markets to our expanding portfolio," said Justin Roberts, CEO of HighSide Companies.

Launched in 2020 as the industry's first new-construction midscale extended stay offering in nearly a decade, Everhome Suites is designed to empower guests to adapt their environment to the way they live and work during longer-term stays. The properties under construction include:

• Everhome Suites Amarillo is located at 11 Care Circle, along I-40, and will have 114 rooms. Amarillo has one of the fastest growing economies among the top 100 midsized cities in the U.S. It serves as the region's medical hub with over 1,000 hospital beds within a half-mile radius of the Everhome, and is home to a significant number of agricultural and livestock manufacturing facilities. The hotel is anticipated to open in the first quarter of 2025.
• Everhome Suites Bastrop is located at 630 Agnes Street, along SH-79, and will have 114 rooms. Demand in the market – located approximately 30 miles south of Austin – is primarily from a sizeable medical research and development presence, and large production facilities for SpaceX and Boring Co. The city is also poised for further growth upon completion of a 550-acre film studio and entertainment district. The hotel is expected to open in the first quarter of 2025.
• Everhome Suites Brownsville will be a 122-room hotel at 3215 Galeno Crossing, along I-69. Brownsville is home to the Port of Brownsville, a SpaceX rocket launch site, and serves as a regional medical hub. The market is expected to experience continued growth due to an under-construction natural gas facility – the largest privately funded infrastructure project in the U.S. The hotel is expected to open in the first quarter of 2025.
• Everhome Suites El Paso will be a 122-room hotel, located at 10740 Montana Avenue, just 15 minutes from both El Paso International Airport and the U.S. Army's Fort Bliss. El Paso is the largest metro area along the U.S.-Mexico border and is experiencing a significant increase in manufacturing demand as a major cross-border trade hub. The hotel is projected to open in the first quarter of 2025.
• Everhome Suites Waco will be a 122-room property at 4301 S Jack Kultgen Expressway. Located along I-40, which connects Waco to Austin and Dallas, the hotel is expected to see significant demand from Baylor University and various food processing and pharmaceutical services companies. Additionally, there are several large hospitals near this location. The hotel is expected to open in December 2024.
• Everhome Suites Yuma will be a 122-room property, located at 2011 E 18 Street, along I-8. Yuma is home to a robust farming and agriculture industry that ranks third in the nation for annual winter vegetable production, three state university campuses, and military business from nearby flight training and testing facilities. The market is also a popular tourist destination; the city's population nearly doubles each winter due to snowbirds and other visitors attracted to the warm climate. The hotel is anticipated to open in the first quarter of 2025.

These properties will feature spacious apartment-style rooms with well-defined areas that separate working from relaxing, as well as innovative, built-in ways for guests to customize the space. The hotel will offer the comforts of home and many convenient amenities, including:  

• Fully equipped kitchens with full-sized refrigerators, dishwashers, stovetops, microwaves, flatware, cookware, and plenty of counter space
• Spa-style bathrooms with high-quality fixtures
• Large closets and additional open and closed storage
• Free Wi-Fi
• Pet-friendly options
• Weekly housekeeping
• Select number of premium one-bedroom suites that feature in-room washer and dryer
• Contemporary multipurpose lobby areas
• 24/7 self-serve, tech-enabled Homebase Market with food, beverages, and groceries
• 24/7 fitness center with state-of-the-art cardio and strength-training equipment
• 24/7 guest laundry facilities

Everhome Suites participates in Choice Privileges, the award-winning rewards program where members earn points on eligible charges during their stay, which can be redeemed for reward nights at more than 7,500 hotels across 22 brands located in 46 countries and territories worldwide. With the Choice Privileges Mastercard, members can earn more points faster, including on everyday purchases.  

Choice Hotels, with a franchise-first focus and an industry-leading retention rate, has been committed to providing its hotel owners with the support they need to succeed since it launched the country's first hotel chain in 1941. Today, Choice offers franchisees a suite of cutting-edge cloud-based solutions, including the choiceEDGE guest reservation platform and the choiceADVANTAGE property management system to help franchisees effectively manage room rates, distribution channels, and inventory. Additionally, Choice University, the most widely awarded learning program in the hospitality industry, delivers customized and always evolving learning and development resources. From pre-opening to grand opening and every day forward, Choice provides hotel owners with best-in-class resources to help them maximize the return on their investment.  

For more information on Everhome Suites development opportunities, visit choicehotelsdevelopment.com/everhome-suites. 

Everhome Suites^®: Closer to Home  
The Everhome Suites brand provides a Closer to Home™ experience that enables guests to live life on their terms during longer-term stays. The newly constructed midscale hotels are designed to help extended stay guests maintain routine on the road with apartment-style suites featuring fully equipped kitchens, spa-like bathrooms and customizable "me" spaces, including movable workstations, full-size closets and additional storage. Everhome Suites properties have modern and sophisticated public spaces, 24/7 fitness centers with Peloton bikes, guest laundry facilities, free Wi-Fi and self-service marketplaces with a variety of fresh and frozen meal and grocery options. For more information, visit https://www.choicehotels.com/everhome-suites.    

About Choice Hotels^®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in upscale and a leader in midscale and extended stay, Choice^® has over 7,500 hotels, representing more than 630,000 rooms, in 46 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice^® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

About HighSide Companies
Founded in 2019, HighSide Companies is a Denver-based leader in hospitality development, with in excess of $500M in active projects across the U.S. and Canada. Under the direction of a leadership team with more than a century of combined experience in every aspect of the commercial real estate lifecycle, HighSide offers best-in-class structured investment, fund management, and development solutions across multiple asset classes. For more information, visit www.highsidecompanies.com.

Forward-Looking Statements 
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 our 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, email: development@choicehotels.com. 

© 2024 Choice Hotels International, Inc. All Rights Reserved 

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SOURCE Choice Hotels International, Inc.

FAQ

What is the ticker symbol for Choice Hotels International, Inc.?

The ticker symbol for Choice Hotels International, Inc. is CHH.

What is the Everhome Suites brand designed for?

The Everhome Suites brand is designed for longer-term stays, with properties featuring spacious apartment-style rooms, fully equipped kitchens, spa-style bathrooms, and customizable work and relaxation spaces.

Where are the new Everhome Suites properties being developed?

The new Everhome Suites properties are being developed in Texas cities including Amarillo, Bastrop, Brownsville, El Paso, and Waco, and in Yuma, Arizona.

When are the new Everhome Suites properties expected to open?

The new Everhome Suites properties are expected to open in the first quarter of 2025 and December 2024.

What amenities will the Everhome Suites properties offer?

The Everhome Suites properties will offer fully equipped kitchens, spa-style bathrooms, large closets, free Wi-Fi, pet-friendly options, weekly housekeeping, and 24/7 fitness and laundry facilities.

What rewards program does Everhome Suites participate in?

Everhome Suites participates in Choice Privileges, where members earn points on eligible charges during their stay, which can be redeemed for reward nights at more than 7,500 hotels across 22 brands located in 46 countries and territories worldwide.