US: Choice Hotels has highlighted the strong performance of its extended stay portfolio in a recent earnings call.
Q4 and full-year key performance metrics for Choice Hotels were down year-on-year but
Choice’s extended stay brands reported a 2020 average occupancy rate of 69 per cent. The company grew its portfolio to 447 US extended stay hotels as of December 31, 2020, an 11 per cent year-on-year increase.
The WoodSpring Suites brand reported 72 per cent average occupancy for 2020 and RevPar y-o-y growth in December of two per cent. Its room supply grew by nearly eight per cent during 2020. The Suburban extended stay brand’s domestic franchise agreements awarded during 2020 increased by 40 per cent year over year. The MainStay Suites midscale extended stay brand in 2020 grew its number of open domestic hotels by 23 per cent and rooms by nearly 38 per cent and had the highest number of hotel openings in a year in the brand’s history.
“For 2020, Choice awarded nearly 110 extended stay franchise agreements, validating our strategic focus on this segment for both new construction and conversion opportunities,” said Choice president and CEO Patrick Pacious. “Given these results we had in 2020, we remain optimistic about the growth potential of our extended stay portfolio.”
