ROCKVILLE, Maryland—Choice Hotels International, Inc. signed an agreement with Colorado-based real estate investment firm ServiceStar Capital Management to develop 21 new Everhome Suites hotels. This transaction represents Choice’s largest investment in the brand, outlining an expansion across the United States with future Everhome Suites planned in Colorado, Arizona, Utah, Nevada, and Florida over the next few years.
“Everhome Suites combines Choice Hotels’ decades of midscale hospitality expertise with our proven extended stay operating model, and this commitment from ServiceStar—one of the most experienced extended stay investors—affirms the opportunity that savvy developers see in this segment. It’s no secret that the extended stay segment has offered incredible resiliency and high returns in any environment,” said Patrick Pacious, president and CEO, Choice Hotels. “Everhome is on the cusp of major growth, with the first hotel on track to open this month and over 30 others already under development. The key to the brand’s continued success is our ongoing collaboration with growth-minded investors/developers like ServiceStar, whose commitment fuels our shared goal of providing new hotels in the right markets that meet the needs of longer-staying guests.”
Choice’s newest brand, Everhome Suites, is a new construction, midscale extended-stay offering with accommodations for the way guests live and work during longer-term stays.
“Choice Hotels is a leader in extended stay and our newest collaboration underscores our shared focus on profitability, which is key to our mutual success. We firmly believe in their ability to bring another highly successful brand to market that guests in the midscale extended stay segment will love while delivering on its segment-leading return on investment potential for franchisees—that’s precisely why we and our development partners are thrilled to grow our relationship with them,” said Mark DeRose, principal and co-founder, ServiceStar Capital Management.
In addition to investing in Everhome Suites, ServiceStar Capital Management and its development partners are developing more than 50 WoodSpring Suites hotels across the country, building on their existing open and under-development portfolio of WoodSpring properties throughout Colorado, Arizona, Utah, Nevada, Montana, and Pennsylvania. They will also develop WoodSpring Suites in Atlanta and throughout Florida.