ROCKVILLE, Md. — Choice Hotels International recently reported that its extended-stay brands, which include WoodSpring Suites and Suburban Extended Stay in the economy segment and MainStay Suites and the recently-launched Everhome Suites in the midscale segment, have achieved occupancy levels that are significantly higher than industry averages amid the worldwide decline in travel demand.
For the month of March, Choice Hotels’ extended-stay brands achieved an average occupancy level of more than 68 percent compared to the U.S. hotel industry average of approximately 40 percent. In April, Choice Hotels’ extended-stay brands reported occupancy of 60 percent—more than double the industry average of 25 percent for the month, according to STR. Choice’s extended-stay brands continued this trend in May with an average occupancy of 67 percent.
WoodSpring Suites, the company’s largest brand in the segment, achieved an average occupancy rate of more than 70 percent in the month of May.
As a result of their occupancy outperformance, Choice’s extended-stay brands also outperformed on RevPAR from March and April. Despite an industry-wide RevPAR decline of nearly 52 percent in March and 80 percent in April, RevPAR for the company’s extended-stay brands declined less than 14 percent and 29 percent, respectively.
Virtually all of Choice’s extended-stay portfolio remained open during the month of April, through some of the worst weeks of the COVID-19 pandemic.
Choice reached a new milestone in the first quarter of 2020, reaching 410 open domestic extended-stay hotels, which represent a nearly 10 percent year-over-year increase, and currently has another 300 hotels in the pipeline. The company has opened 17 extended-stay hotels so far in 2020. Choice expects to open its first Everhome Suites property in the Los Angeles area in 2021. Year-to-date extended-stay openings include 11 new WoodSpring hotels—with WoodSpring Suites Indianapolis Castleton opening as Choice’s 400th extended-stay property—and six new hotels across the MainStay Suites and Suburban Extended Stay brands.
“Our extended stay brands have shown their appeal time and time again for guests in search of a welcoming environment, convenient accommodations, and affordable long-term rates—a demand that remains regardless of the broader travel environment,” said Anna Scozzafava, vice president, brand strategy and operations, extended stay, Choice Hotels. “Essential workers, for example, have long utilized extended-stay hotels as a home base while traveling for work, and our brands were able to support that growing need during the COVID-19 pandemic. As consumer travel begins to recover, we are confident our extended-stay brands will continue to attract and retain guests looking for versatile lodging options, with smartly designed suites and amenities they need, including fully-equipped kitchens, whether they want to stay for a week, a month, or even longer.”