Worldwide: In its latest business update, hotel franchisor Choice Hotels has revealed that the company grew its extended stay segment by 50 per cent during the first half of 2023.
The expansion of Choice Hotels’ extended stay portfolio for the first half of the year represented the second largest growth segment for the company, after upscale hotels which accounted for 83 per cent of openings.
In particular, the month of May saw the highest number of extended stay hotel openings since 2020, including a record number for the WoodSpring Suites brand in a single month.
As a result, Choice Hotels expects the volume of its extended stay inventory to increase at an average annual growth rate of more than 15 per cent over the next five years.
Following the acquisition of Radisson Hotels Americas last year, Choice also revealed that it is ahead of schedule with onboarding nearly 600 properties within the US portfolio. A complete integration is expected at the end of 2023
In 2024, the company calculates it will generate more than 10 per cent adjusted EBITDA growth at the midpoint, year-over-year, driven by approximately $20 million in incremental contribution from Radisson Hotels Americas as well as other “revenue intense segments and markets”.
