Dive Brief:
- Choice Hotels International, alongside developer Paladin Equity Capital, broke ground on three Everhome Suites extended stay hotels and is in various stages of development for an additional six across Southern California, the company announced Tuesday.
- With the hotels, Choice continues its push in the extended stay segment. For the first nine months of 2023, Choice's extended stay hotel openings grew by 38% year over year, the company said.
- Choice is among several major hotel companies beefing up their extended stay stock as demand for the product type remains strong.
Dive Insight:
Choice Hotels is breaking ground on three more Everhome Suites hotels in California: the 120-room Everhome Suites Temecula, the 113-room Everhome Suites Ontario and the 114-room Everhome Suites San Bernardino.
Paladin Equity Capital, which established Corona, California’s first Everhome Suites in 2022, is developing the three hotels, along with six others in various stages of construction across the southern portion of the state. The hotels under construction are slated to open in the second half of 2024 and early 2025.
The properties will meet a high demand — currently double the available supply — for extended stay hotels in the region, Choice said. Some of the largest areas in demand are Los Angeles and San Bernardino, the company added.
California isn’t the only state where extended stay demand is growing. Across the country, developers have increasingly eyed extended stay over other hotel types because of its operational efficiencies and lower cost.
Choice has particularly seen the impacts of this demand growth. In the first several months of the year, the company opened 12 extended stay hotels across New York, Texas, Virginia, Illinois, Florida and California. And in June, Choice partnered with developer Rimrock Companies to bring an additional 20 or more locations for its WoodSpring Suites and Everhome Suites brands to Florida.
High demand for the product type continued throughout the third quarter, as Choice and other major hotel companies noted in earnings reports.
In the third quarter, Choice's domestic extended stay pipeline increased 12% year over year to more than 47,000 rooms. Other companies, including IHG Hotels & Resorts, Hilton and Wyndham, cited extended stay demand as a driver of pipeline growth in the quarter.
