The new Everhome Suites midscale long-stay hotel chain has been designed to help developers build a strong, diversified portfolio while offering a lean operating model with low construction costs. The first hotel is scheduled to open in California in 2021, with 12 more in Los Angeles and Austin, Texas areas over the next two years.
An economic study conducted by Choice Hotels, has shown that budget and midscale long-stay hotels have had high occupancy rates for nearly 20 years, even during an economic downturn. According to the results of the study, while the 2001 and 2007-2009 recessions severely affected hotel occupancy rates in the United States, by approximately 70 to 60 per cent and 55 per cent, budget and midscale long-stay hotels maintained occupancy rates of 70 to 65 per cent. Choice Hotels' Director of Development, David Pepper, says the proprietary operating model can "help increase margins, occupancy rates and expected revenues in virtually any economic environment". Its resilience and adaptability would then be the new brand's main assets when dealing with investors.
The same study has also revealed an underserved extended-stay segment:
The demand for hotel stays of seven-plus nights is nearly 20% of all room nights sold, yet only 9% of the supply is in the extended-stay segment, [...]. Everhome Suites sets out to capture this unmet demand with fresh, modern hotels that satisfy value-conscious consumer preferences for longer-term stays, said Anna Scozzafava, vice president, brand strategy and operations, extended stay, Choice Hotels.
Like most of its long-stay properties, Everhome's bedrooms will feature a fully equipped kitchen, dining table and separate living and sleeping areas. They will also include a variable height workstation, a full-size closet, a full-sized refrigerator and a dishwasher. However, the bedrooms, gymnasium and other public spaces will be smaller, reducing construction costs.
In 2019, Choice Hotels had a portfolio of 7,021 hotels or 569,108 rooms, placing it 7th in the top 10 hotel groups in the world and 13th in the top 20 groups in Europe in 2020 with a portfolio of 342 hotels or 40,580 rooms (Hospitality ON data).
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