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Choice Hotels (CHH) Expands Everhome Suites in Key Markets

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Choice Hotels International, Inc. (CHH - Free Report) , a global leader in the lodging industry, is making strategic moves to further solidify its position in the extended stay market.

The company recently broke ground on three new Everhome Suites in San Antonio, TX; Bowling Green, KY and Wichita, KS. These new developments are a testament to Choice Hotels’ commitment to expanding its footprint in high-demand markets, particularly in the midscale extended stay segment.

Collaborating with Highside Companies, Choice Hotels is rapidly increasing its portfolio of Everhome Suites. With these latest groundbreakings, the company now has four Everhome Suites open, 65 in the pipeline and more than 20 currently under construction. The San Antonio location marks the sixth Everhome Suites being built in Texas, while the Bowling Green and Wichita sites represent strategic firsts for Kansas and further expansion in Kentucky.

The choice of locations highlights the company’s strategy of tapping into markets with strong demand drivers. For instance, the Bowling Green property is situated near major manufacturing hubs and corporate headquarters, making this an ideal spot for business travelers. Similarly, the San Antonio and Wichita properties are positioned close to key corporate and military installations, ensuring a steady stream of guests.

Choice Hotels' first-mover advantage in the extended stay category is evident, with nearly 400 hotels in the pipeline across its four extended stay brands. This aggressive expansion is designed to meet the growing demand in the segment, where supply is currently lagging behind demand.

Everhome Suites offers guests a home-away-from-home experience with fully equipped kitchens, spa-style bathrooms and contemporary amenities. The brand’s focus on providing comfort, convenience and flexibility is resonating with both business and leisure travelers.

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Focus on Extended Stay Brand

Choice Hotels’ initiatives to expand in domestic and international markets are encouraging. The company’s distinctive unit growth strategy remains effective, bolstering the appeal of its brands. Introduced in 2023, the company’s Everhome Suites extended stay brand is going strong, with four hotels already open. The brand is generating significant interest among developers, with approximately 70 domestic projects in the pipeline, including 20 under construction as of the first quarter of 2024. More than 10 properties under the brand are expected to open by 2025.

On Jun 6, 2024, the company unveiled plans to expand the Everhome Suites brand with three new properties in Northeastern U.S. markets. Developed in partnership with Highside Companies, the new extended stay properties will be located in Portsmouth, NH; Rochester, NY and Somerset, NJ. The growing demand for extended stays in these locations makes Everhome Suites the perfect fit for fulfilling the needs of business, as well as leisure travelers.

Shares of this global hotel franchisor have gained 8.2% in the year-to-date period compared with the Zacks Hotels and Motels industry’s 4.1% growth. Although shares of CHH have underperformed its industry, the company’s focus on strategic expansion initiatives, hotel conversion opportunities and diversified product portfolio are likely to boost growth momentum in 2024 and beyond.

The company currently carries a Zacks Rank #3 (Hold).

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