Everhome Suites Makes its Debut on the East Coast with Opening in Newnan, GA, Continuing the Brand's Growth
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Insights
The opening of Everhome Suites in Newnan, Georgia, represents a strategic move by Choice Hotels International to capitalize on the growing demand for extended stay accommodations. This sector has been experiencing a significant mismatch between supply and demand, with demand reportedly being double the current supply. The dual-site strategy leverages synergies between the midscale Everhome Suites and the economy WoodSpring Suites, aiming to cater to a broader market segment.
From a market research perspective, the decision to co-locate these brands on the same property could potentially offer competitive advantages. It allows for shared services and amenities, which may reduce operating costs and increase efficiency. Additionally, the presence of two different price points on the same site could attract a diverse customer base, ranging from leisure travelers to traveling healthcare workers and blue-collar business travelers. This could lead to increased occupancy rates and revenue per available room (RevPAR), a key metric in the hospitality industry.
Furthermore, the emphasis on modern amenities such as fully equipped kitchens, spa-style bathrooms and high-tech fitness centers aligns with the evolving preferences of extended stay guests. The inclusion of pet-friendly accommodations and free Wi-Fi are also important features that can influence guest choice and loyalty. The integration with Choice Privileges, the rewards program, may also enhance customer retention and attract new guests looking for value-added benefits.
The launch of Everhome Suites alongside WoodSpring Suites by Choice Hotels International is a significant development from a financial standpoint. The extended stay segment has shown resilience during economic fluctuations and the company's investment in this category could be a strategic move to stabilize revenue streams. The strong performance of the WoodSpring brand, as mentioned by Turnstone Group CEO Chip Johnson, indicates that the market in Newnan, Georgia, has untapped potential that Everhome Suites could exploit.
Investors should note that the development of six shared site projects across the country signals a bullish outlook on the part of Choice Hotels International for the extended stay category. The lean operating model mentioned is indicative of a focus on cost efficiency, which is crucial for profitability in the hospitality sector. The expansion of the Everhome Suites brand, with 66 properties in its pipeline, suggests a long-term growth strategy that could have a positive impact on the company's stock performance if these properties achieve or surpass projected occupancy and revenue targets.
However, it is important to monitor the execution of this strategy, particularly in terms of how effectively Choice Hotels can differentiate the two brands to prevent cannibalization of their respective markets. Additionally, the company's ability to maintain high service standards while managing a dual-site property will be critical to the success of this venture.
The hospitality industry is witnessing a burgeoning trend in the extended stay niche and Choice Hotels International's move to open a dual-site property with Everhome Suites and WoodSpring Suites is a testament to this trend. The company's strategy to differentiate the brands by targeting different economic segments—midscale and economy—could optimize market coverage and maximize asset utilization.
The extended stay market has unique characteristics, such as longer guest stays and a focus on 'home-like' amenities, which Everhome Suites seems to address with its suite of offerings. The brand's focus on customizable spaces and modern amenities is aligned with the needs of today's mobile workforce and leisure travelers seeking comfort for longer durations. The proximity to the City of Hope Cancer Center and the inclusion of amenities like customizable workstations and spa-style bathrooms are tailored to the needs of healthcare workers, patients and their families, indicating a thoughtful market segmentation strategy.
The hospitality industry often relies on differentiation to carve out market share and the dual-site property approach could serve as a case study in strategic positioning. If successful, this could prompt other players in the industry to explore similar models, especially in markets with a high demand for extended stay accommodations.
Everhome opens in dual-site property alongside WoodSpring Suites to attract different guests
"When Everhome first launched in January 2022, it was the first new midscale extended stay brand to come onto the scene in nearly a decade. We purposefully designed the brand with input from our biggest WoodSpring owners and developers to drive high performance," said Matt McElhare, vice president for extended stay brands at Choice Hotels. "Now, our developers are recognizing the complementary opportunity, pairing Everhome and WoodSpring on a shared site, which enables them to appeal to a wide range of extended stay guests. Everhome Newnan is our first of six shared site projects planned across the country."
The current demand for purpose-built extended stay products is twice the supply, and the category continues to garner attention as one of the hottest in the hospitality industry. With its complementary dual-site strategy, Choice expects guest demand for Everhome to come from a higher portion of discretionary leisure travelers, traveling healthcare workers, hospital patients, and IT and skilled workers who prefer higher-end amenities. For the economy WoodSpring brand, Choice expects guest demand to continue to come from blue-collar business travelers such as construction crews and others.
"We decided to build an Everhome next to our WoodSpring based on the latter's strong performance, way ahead of our initial projections, and because there is a ton of demand in the
Everhome Suites is attractive to guests with its spacious suites with long-stay amenities featuring fully equipped kitchens, spa-style bathrooms, and customizable spaces, including movable workstations, full-size closets, and additional storage. Everhome Suites properties have modern and sophisticated outdoor and 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.
Situated at 67 Diplomat Parkway in
- Fully equipped kitchen with full-sized refrigerator, dishwasher, stovetop, microwave, flatware, cookware and plenty of counter space
- Spa-style bathrooms with high-quality fixtures
- Large closets and additional open and closed storage
- Pet-friendly
- Free WiFi
- Contemporary multipurpose lobby and outdoor amenity 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 7,000 Choice-branded hotels across a diverse portfolio of brands in 46 countries and territories. 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 https://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 new construction midscale hotels are designed to help extended stay guests maintain routine on the road with spacious suites with long stay amenities featuring fully equipped kitchens, spa-style 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 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.
Forward-Looking Statements
This communication includes "forward-looking statements" about future events, including anticipated 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.
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