Choice Hotels International this week purchased the brand WoodSpring Suites, expanding its extended stay portfolio to more than 350 properties.
Choice bought the brand from American private equity firm Lindsay Goldberg for an estimated $231 million, acquiring nearly 240 extended stay hotels in 35 states. The Wichita, Kan.-based WoodSpring Suites plans to open more than 25 hotels in 2018.
According to an recent report from the Highland Group, extended stay hotel demand and supply are both bettering industry averages.
“Extended stay is a fast-growing segment, reporting some of the strongest gains in demand and has led the hospitality industry in annual RevPAR growth. The addition of the WoodSpring Suites brand will allow us to strengthen our scale within the attractive extended-stay segment, expand our runway for growth, and continue to create value for our customers, franchisees and shareholders,” said Patrick Pacious, president and CEO of Choice Hotels.
Choice already operates extended stay brands MainStay Suites and Suburban Extended Stay.