Dive Brief:
- Extended Stay America broke ground on its first new construction Select Suites property in Wildwood, Florida, the company announced Tuesday.
- The 124-room property was designed to “drive greater efficiencies” while still providing the amenities and services extended stay guests expect, the company said, with a prototype that “maximizes a smaller footprint” of slightly 50,000 square feet.
- Extended Stay America launched its Select Suites brand in September 2022. The brand is designed to offer franchisees lower costs and greater “financial efficiency,” as the extended stay segment continues to drive growth for hotel companies across the U.S.
Dive Insight:
Construction on Extended Stay America’s new Select Suites prototype will take place on 1.75 acres, according to the announcement.
The four-story building will offer apartment-style suites with full kitchens and on-site laundry. The prototype includes minimal public space to “further contain operational costs,” Extended Stay America said.
Wildwood, Florida, sits at the crossroads of several major highways as well as several manufacturing, distribution and agricultural centers, including Charlotte Pipe and Foundry, Crevalle Boats, Gresco Utility Supply, Mapei and Primus Pipe & Tube. It’s also near medical facilities UF Health and HCA Florida Hospitals, age-restricted community The Villages and GatorWorld Parks of Florida.
Upon the launch of Select Suites, Extended Stay America Managing Director of Franchise Development Mark Williams said, “The extended stay segment is experiencing extremely strong fundamentals. Developers, lenders, and many who have focused on the transient or upscale segments are now interested in investing and building in the extended stay segment.”
Select Suites, in particular, he added, “will be especially attractive to hoteliers for its low cost and the potential for an attractive return on investment.”
Select service and extended stay hotels will continue to draw significant investor interest in 2024 according to JLL’s latest U.S. Select-Service and Extended-Stay Hotel Trends and Outlook, which found that the ongoing evolution of the sector has driven its investment appeal to unprecedented levels.
Between 2020 and the third quarter of 2023, the number of first-time buyers of select service and extended stay hotels hit a record high of 855, according to the outlook.
