The first property is set to open in suburban Chicago this summer and Choice Hotels said it currently has more than 27 in the development pipeline. There are currently 70 existing Suburban Extended Stay properties in its portfolio.
President and CEO Patrick Pacious said he sees this brand getting as big as one of its current extended-stay frontrunner, WoodSpring Suites, because it has been designed to transform existing transient products into extended-stay properties.
“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,” Pacious said on Tuesday during a virtual press conference. “This is the lowest cost way to convert any room into an extended-stay room and then benefit from the operating model.”
Costs for this conversion brand will be about US$2,700 per room for hard goods and about US$5,000 all-in costs. RevPAR is expected to range from US$30 to US$40. Guests will have access to free high-speed internet, 24/7 laundry facilities and bi-weekly housekeeping.
The modular design of the room is meant to fit any existing hotel room that has six linear feet, and the kitchen-in-a-box is designed to match up with the existing plumbing to control conversion costs.