US: Choice Hotels International has is modernising and rebranding its Suburban Extended Stay franchise brand as a low-cost, flexible conversion model called Suburban Studios.
Choice says the move is intended to take advantage of what it sees as a big opportunity to grow in the economy extended-stay segment.
The first property is set to open in suburban Chicago this summer, with at least a further 27 in the development pipeline. There are currently 70 existing Suburban Extended Stay properties in its portfolio.
Choice president and CEO Patrick Pacious said: “The modernisation of Suburban signals that the brand is poised for growth, and that Choice is dedicated to expanding its foothold in the extended stay segment with the best investment opportunity for franchisees and experience for guests. This is the lowest cost way to convert any room into an extended stay room and then benefit from the operating model.”
This time last year, Pacious emphasised the robust performance of the company’s extended stay brands through the pandemic.
Costs for this conversion brand will be in the region of US$2,700 per room for hard goods and US$5,000 all-in costs. RevPAR is expected to range from US$30 to US$40. Guests will have access to free high-speed internet, 24/7 laundry facilities and bi-weekly housekeeping.
The modular design of the room is intended to fit any existing hotel room that has six linear feet, and the kitchen-in-a-box is designed to match up with the existing plumbing to control conversion costs.
“One of the other reasons we are launching Suburban Studios is because land values continue to increase. We have captured that with WoodSpring Suites and still want to be the leader there,” said Ron Burgett, senior vice president, franchise development, extended stay for Choice Hotels. “But there are times when you want to enter a hot market and you can’t find a piece of land. We think this is a good time to take an existing asset, and there are a lot of them out there, and turn it around.”
