New Partnership to Bring 50 Extended Stay Hotels to U.S. Market
Choice Hotels International has joined forces with Bell Hospitality Group to open at least 50 of Choice Hotels’ MainStay Suites and Suburban Extended Stay brand hotels across the United States. Bell will handle construction of the properties, which will be erected in various locales in the Midwest and the South, as well as in New Mexico and Colorado. As per terms of Choice Hotels and Bell’s development agreement, construction of the 50 new hotels must be in the development stage by Oct. 31, 2009. Already, the partners have closed on franchise deals for five MainStay properties in Tulsa and Oklahoma City; Okla., Kansas City, Mo.; and Colorado Springs, Colo. And the team orchestrated an additional four franchise agreements for Suburban Extended Stay properties in the Louisiana’s Now Orleans, Baton Rouge, Lafayette and Lake Charles markets. “The South Central U.S. region is a strong extended stay market,” Chris Kornmayer, Choice Hotels’ senior director of brand management for extended stay brands, told CPN today. “It’s definitely an up-and-coming region, those six states from Colorado to Louisiana.” The Bayou State, in particular, is of prime interest to the team. “We’re looking to dive into Louisiana right away,” he said. “It’s a very strong market right now for extended stay.” The MainStay brand falls into the mid-market extended stay hotel group, while Suburban Extended Stay is part of the economy extended stay class. Both categories of the hotel market continue to thrive across much of the United States. As per a December 2007 publication by PKF Consulting, extended-stay properties, due to their efficient operations, generally achieve high profit margins. In 2006 the average profit margin for the extended stay sector was 47.7 percent, compared to an industry wide average of 28 percent.Silver Spring, Md.-based Choice Hotels franchises a portfolio of over 5,500 hotels accounting for approximately 450,000 guestrooms in the U.S. and 37 countries and territories. Additionally, the company has a portfolio of 872 properties currently under development in the U.S., and 82 more in the works in 20 countries and territories. Aside from its MainStay and Suburban Extended flags, Choice Hotels’ group of brands includes Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, Econo Lodge and Rodeway Inn.
Bookmarks bar – HInts4-5
via %Extended-Stay-Hotels% – BingNews (Full RSS Feed) https://binged.it/2KwoG2f
June 3, 2019 at 01:36AM