Choice Hotels International has entered into agreement with ServiceStar Capital Management to develop 21 new Everhome Suites hotels in the US.
Everhome Suites, a midscale extended stay brand under Choice’s portfolio, provides guest with customisable, apartment-style accommodations for long-term stays.
As part of the agreement, the partners will open Everhome Suites properties in Colorado, Arizona, Utah, Nevada and Florida over the next few years.
The deal marks the largest investment made by Choice Hotels in the brand.
Choice Hotels president and chief executive officer Patrick Pacious said: “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.
“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.”
In addition to Everhome Suites, ServiceStar and its development partners will develop more than 50 WoodSpring Suites hotels across the country.
WoodSpring Suites, which is also a brand of Choice Hotels, will add hotels in Atlanta, Georgia and throughout Florida.
Last month, Choice Hotels added Radisson Hotels Americas to its portfolio following the completion of the $675m acquisition.