Choice Hotels : Suburban Extended Stay Hotel brand to become Surburban Studios

3 min reading time

Published on 17/03/22 - Updated on 17/03/22

Suburban Studios Choice Hotels

Choice Hotels International has decided to rebrand its Extended Stand brand as Suburban Studios to face the competition.

The pandemic has brought some changes in the hospitality sector, and among these changes there are the emergence of new needs of customers. In fact more and more travellers are looking for extended-stay properties. This is what discover Choice Hotels when it acquired WoodSpring Suites. It decided therefore to modernize and rebrand its Suburban Extended Stay franchise brand as a low-cost, flexible conversion model called Suburban Studios. 

When we added Suburban, one of the first extended stay brands on the market, to our portfolio nearly two decades ago, we did so with the intent of fulfilling an emerging need in the industry for hotel owners and longer-staying guests. Today, the travel landscape has evolved with demand for extended stay products at an all-time high, and our commitment to innovating new ways to drive value for our franchisees and guests remains. […] The modernization of Suburban signals that the brand is poised for growth, and that Choice is dedicated to expanding its foothold in the extended-stay segment with the best investment opportunity for franchisees and experience for guests. This is the lowest cost way to convert any room into an extended-stay room and then benefit from the operating model.

Patrick Pacious, President and CEO of Choice Hotels International

There are currently 70 existing Suburban Extended Stay properties in the Choice Hotels portfolio. And the first property of this next generation extended stay brand is set to open in suburban Chicago this summer 2022. The group said it currently has more than 27 in the development pipeline.

The new design of each room is meant to fit any existing hotel room, and the kitchen-in-a-box is designed to match up with the existing plumbing. Costs for this massive conversion are about $2,700 per room for hard goods, and about $5,000 all-in costs. Thanks to this rebranding RevPAR is expected to range from $30 to $40. 

Economy extended stay has always been a developer favorite because of the category's demonstrated resiliency and returns, but the fact remains: there is a significant imbalance between demand and current market supply. So, when our development community asked for another product to capitalize on this industry white space more efficiently, we listened. The refreshed Suburban Studios offers an industry-first opportunity for owners to transform existing assets in transient markets into an extended stay property backed by the segment leader in Choice Hotels, while also providing exactly what guests want during longer stays. 

David Pepper, chief development officer, Choice Hotels International 

Suburban Sutdios are designed to « appeal to extended stay travelers of today and tomorrow » with providing a « Welcome Home » experience optimized for longer-term guests. The rooms are spacious enough to live in for weeks, even months if needed, and equiped with in-room kitchens with all the essentials to cook. In addition, there is flexibility to book longer stays on the go.

Choice Hotels is not the only hospitality group which wants to grab this growing market, last year Radisson Hotel group launched its own extended stay brand : Radisson Hotel & Suites. The first property is located in Amsterdam but the group has strong ambitions regarding this year and the next ones in terms of expansion.

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