Choice Hotels Inks Agreement To Develop 27 WoodSpring Suites Hotels
ROCKVILLE, Md., Jan. 24, 2019 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH) signed an agreement with CHECO Purchase Company, LLC, a subsidiary of Concord Hospitality, which has newly formed Common Oaks Lodging LLC, to develop 27 new WoodSpring Suites hotels. The hotels will be built throughout Michigan and North Carolina, as well as in the metropolitan areas of Jacksonville, Fla. and Nashville, Tenn.
The transaction comes on the heels of the brand's record-setting growth year in 2018 where the WoodSpring Suites brand significantly exceeded the number of new contracts awarded in a single year. The brand now has more than 100 hotels in the pipeline, with nearly 250 open and 35 hotels expected to open in 2019.
"WoodSpring Suites isn't just the fastest-growing economy extended-stay brand, it's the fastest-growing hotel brand in the overall economy segment, and developers continue to recognize its strength and returns again and again," said Ron Burgett, vice president, WoodSpring Suites development, Choice Hotels. "We expect to build upon the success of our record-setting growth in 2018, and look forward to the acceleration of the WoodSpring Suites brand expansion with this agreement and bring more extended-stay accommodations to travelers across the U.S."
"I am very impressed with the WoodSpring Suites business model and what Choice Hotels will do with this brand. With our goal to develop 27 new WoodSpring Suites hotels over the next several years, my partners and I are furthering our long-lasting relationship with Choice hotels. In addition, this agreement marks the launch of Common Oaks Lodging LLC, a subsidiary of Concord Hospitality, which will provide the management and development services to this exciting new development portfolio," said Mark Laport, chief executive officer and president, Concord Hospitality and principal of the group who will own the hotels.
The venture marks an expansion of Concord Hospitality's existing relationship with Whitman Peterson, an institutionally backed real estate investment management company actively investing in the hospitality, multifamily, student, and seniors housing sectors. The firm has investments across 30-plus submarkets in the U.S. and also has investments in the United Kingdom and Latin America.
"We are so pleased to have this opportunity to help grow the WoodSpring Suites brand and – through Common Oaks Lodging – expand upon our existing relationship with Concord Hospitality. We believe the markets on which we are focused are ideal for WoodSpring Suites and fill a significant gap in this segment of the lodging industry," said Paul Novak, Managing Director for Whitman Peterson.
"Choice anticipated that acquiring this all-new-construction, economy extended-stay brand would be a smart investment, and guests and developers agree," said Ralph Thiergart, vice president and general manager, extended stay brands, Choice Hotels. "The WoodSpring Suites brand has reenergized Choice's entire extended-stay portfolio, including the MainStay Suites and Suburban brands, which have also experienced record growth years. Simply put, WoodSpring Suites executes the basics better and guests and developers have noticed."
Choice Hotels awarded 75 new WoodSpring Suites franchise agreements in 2018 and opened 14 hotels in top markets across the U.S., including Chicago, Seattle, Atlanta, Detroit and Charlotte, N.C.
To learn more about WoodSpring Suites, visit www.woodspring.com/ourbrand/.
About WoodSpring Suites®
WoodSpring Suites hotels offer extended stay guests a welcoming environment and straightforward stay – all affordably priced. Franchised by Choice Hotels, WoodSpring Suites is the nation's fastest-growing economy extended stay hotel brand. Each property is newly-constructed and built to anticipate the needs of travelers looking for a longer-term stay. Properties feature all-suite rooms with fully-equipped kitchens, flexible workspaces, and guest laundry facilities. There are more than 240 WoodSpring Suites hotels open in over 35 states and nearly 100 in the pipeline across the country as of September 30, 2018. For more information, visit www.woodspring.com/ourbrand/.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest and most successful lodging franchisors in the world. With more than 6,900 hotels, representing more than 560,000 rooms in over 40 countries and territories as of September 30, 2018, the Choice® family of hotel brands provide business and leisure travelers with a range of high-quality lodging options from limited service to full-service hotels in the upscale, midscale, extended-stay and economy segments. The award-winning Choice Privileges® loyalty program offers members benefits ranging from everyday rewards to exceptional experiences. For more information, visit www.choicehotels.com.
About Common Oaks Lodging LLC
Common Oaks Lodging LLC is a subsidiary of Concord Hospitality Enterprises Company. As an award-winning hotel development and management company, Concord Hospitality Enterprises Company has spent the last three decades building relationships with investors, partners and hotel owners developing and/or managing premium-branded properties with a value in excess of $2.5 billion across the United States and Canada. As an operator, Concord Hospitality instills value from the ground up, developing and managing with a sustainable viewpoint, maintain a focus on quality and hands-on involvement to ensure long-term profitability and success. Learn more at www.concordhotels.com.
About Whitman Peterson
Whitman Peterson ("WP") is an institutionally backed real estate investment management company actively investing in the hospitality, multifamily, student and seniors housing sectors. Through its discretionary commingled funds, WP has invested in transactions involving more than 150 acquisition and development assets, with an aggregate capitalization of over $15 billion. Whitman Peterson focuses on helping drive significant asset and operating company growth to a select group of prominent national operating, investment, and development companies within WP's target sectors. To learn more about Whitman Peterson, visit www.WhitmanPeterson.com.
Forward-Looking Statement
This communication includes "forward-looking statements" about future events, including anticipated hotel openings. Such statements are subject to numerous risks and uncertainties, including construction delays, availability and cost of financing and the other "Risk Factors" described in our Annual Report on Form 10-K, any of which could cause actual results to be materially different from our expectations.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 1 Choice Hotels Circle, Suite 400, Rockville, MD 20850, [email protected].
© 2019 Choice Hotels International, Inc. All rights reserved.
SOURCE Choice Hotels International, Inc.
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