Yahoo Finance Choice Hotels' (CHH) Everhome Suites Expands in Lexington
Choice Hotels International, Inc. CHH continues to expand its extended stay brand, Everhome Suites. The company unveiled a new Everhome Suites in Lexington, KY. CHH now has more than 60 Everhome Suites in development, with 20 currently under construction. This move strengthens the company's leadership in the extended stay market.
Moreover, it has over 10 Everhome Suites expected to open within the next year. In the extended stay category, the company has more than 400 properties in the pipeline across its four brands as of the first quarter of 2024. Choice's domestic extended stay hotel portfolio expanded by 17.4% from March 31, 2023, to March 31, 2024, fueled by growth in its economy and midscale extended stay brands.
Developed by New Circle Investments and managed by H&W Hotels, the Everhome Suites Lexington North is a four-story, 114-room hotel located off I-64 in Lexington. This hotel serves the University of Kentucky market and the greater Lexington area. Guests can explore Kentucky horse racing history at Red Mile Gaming & Racing, attend major events at Rupp Arena and visit the Central Bank Center for conventions. The hotel also features a mural dedicated to the Kentucky Wildcats team, highlighting key moments and players created by OSRS.
Focus on Extended Stay Brand
Choice Hotels’ initiatives to expand in domestic and international markets are encouraging. Its 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.
Other than Everhome Suites, Choice Hotels has three more extended stay properties, WoodSpring Suites, Mainstay Suites and Suburban Extended Stay Hotel. As of the first quarter, under this property category, the company had nearly 40 hotels open and more than 400 properties in the pipeline across its four extended-stay brands.
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Shares of this global hotel franchisor have gained 1.3% in the year-to-date period compared with the Zacks Hotels and Motels industry’s 6.3% growth. Although shares of CHH have underperformed its industry, its focus on strategic expansion initiatives, hotel conversion opportunities and diversified product portfolio are likely to boost growth momentum in 2024 and beyond.
Zacks Rank & Key Picks
Choice Hotels currently carries a Zacks Rank #3 (Hold).
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Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
