Dive Brief:
- Choice Hotels’ extended stay Suburban Studios brand hit a milestone this week, opening its 100th hotel property, the company announced.
- Since its relaunch in 2022, Suburban Studios has seen 45% growth in 18 months, Choice said in the release. This growth has ramped up in the last several months, with five hotels opening in October, eight opening in November and the 100th Suburban Studios recently launching in Bloomington, Minnesota.
- Suburban Studios allows developers to break into the extended stay category through hotel conversion. The brand milestone comes as developers have increasingly demanded the extended stay product type and hotel conversion this year, as they provide more cost-effective project options.
Dive Insight:
Suburban Studios has rapidly expanded in the extended stay segment, in part, because of its conversion options, Ron Burgett, senior vice president of extended stay development at Choice Hotels, noted in the release.
“Extended stay conversions are much faster to market than their new construction counterparts, helping developers see returns as soon as possible,” he said.
Developers can convert a preexisting property into a Suburban Studios hotel in three to four months, a significantly faster turnaround time than a new construction project, according to Choice Hotels.
The company’s senior vice president of Foundation Development Tom Nee previously told Hotel Dive that the speed of opening, cost savings and increased revenue are factors driving owners and developers to hotel conversion.
At midyear 2023, the hotel conversion pipeline was at historic levels, with announced renovations and brand conversions accounting for 1,939 projects, or 253,473 rooms, according to Lodging Econometrics. Competition in the conversion space continues to heat up, with IHG recently launching a midscale conversion brand, Garner.
As for extended stay, operating efficiencies and increased profits have driven increased demand for the property type. According to Choice, demand for extended stays “is double the supply of purpose-built extended stay product.”
Choice Hotels has 31 Suburban Studios properties in the pipeline.
