Dive Brief:
- Denver-based select service and extended stay hotel investor Mission Hill Hospitality has acquired two new hotel assets — Residence Inn Tuscaloosa in Alabama and Home2 Suites by Hilton in Blacksburg, Virginia.
- The deal marks Mission Hill’s first acquisition in Alabama and its second in Virginia. Both properties are located in growing markets with prominent colleges, the University of Alabama and Virginia Tech.
- Select service development opportunities continue to be a key growth driver for hospitality companies, fueled by travelers looking for more space and longer stays for blended work and leisure trips.
Dive Insight:
The 111-room Residence Inn Tuscaloosa and the 103-room Home2 Suites property each offer convenient access to nearby attractions, college football stadiums and airports.
“The opportunity to acquire these two well-located assets aligns with our strategy to invest in core branded, select service hotels in stable and growing markets, especially those driven by higher education,” said Mike Wilbert, managing director of Mission Hill Hospitality, in a statement. “Both the University of Alabama in Tuscaloosa and Virginia Tech in Blacksburg continue to be significant contributors to the growth and development of both cities and generate substantial demand for extended stay hotels.”
Competition in the extended stay segment has been heating up. Investment volume in select service and extended stay hotels in the U.S. in 2022 increased 5.5% year over year, according to JLL commercial real estate market research published earlier this year.
Hilton’s Home2 Suites is the leading brand in the middle-tier extended stay segment, with 546 extended stay developments underway or planned, according to Lodging Econometrics.
