Extended Development
Several Companies Ink Development Deals Within Outperforming Segment
While the acquisition market has been heating up in recent weeks, development activity—particularly within the popular extended-stay segment—is gaining momentum as well with a number of companies eyeing expansion in ’22 and beyond.
For example, apartment-style hotel brand stayAPT Suites recently joined forces with Greenville, SC-based Aileron Management to develop up to 10 new franchised stayAPT Suites locations across the United States Southeast region by 2025.
Aileron Management, a hospitality management and investment firm, will begin work next year on their first two stayAPT Suites locations in Tuscaloosa, AL, and Savannah, GA. Those additions will be followed by additional locations in Florida, Alabama, and the Carolinas. These new sites immediately expand stayAPT Suites’ growing pipeline to eleven U.S. states—a geographic footprint now spanning from Arizona to Florida and up to Indiana.
“Our new partnership with Aileron is happening at such an exciting moment of growth for stayAPT Suites,” stated extended-stay veteran and stayAPT Suites President and CEO, Gary A. DeLapp. “This collaboration signals continued momentum behind our segment-disrupting brand and is a testament to the truly unique lodging experience we bring to the market. We look forward to very soon providing additional Southeastern U.S. markets with a better way to stay.”
“We look forward to applying our expertise in hospitality, specifically in management, to the expansion of the stayAPT Suites brand,” stated Jason Boehm, CEO of Aileron Management. “Our experience will be enormously beneficial to these projects, and the stayAPT Suites brand, from a strategic perspective. The stayAPT Suites brand is a game-changer in the Midscale category of the long-term lodging segment, and we are confident that we can deliver these new locations with exceptional quality – and at a terrific cost basis.”
Meanwhile, San Diego-based Hotel Investment Group has completed the purchase of property in San Marcos, where it intends to develop a 110-room Home2 Suites by Hilton. Construction is slated to begin in summer 2022 at the 1.66-acre property—located on an empty lot at the corner of Montiel Road and Leora Lane—and is estimated to be complete by late 2023.
“The hospitality industry is finally starting to rebound from the challenges of the last two years, putting us in a prime position to continue expanding HIG’s portfolio,” stated HIG CEO Darshan Patel, Esq, in a statement. “Bringing a Home2 Suites to San Marcos will provide a much-needed extended-stay hotel option for the medical community at Palomar Hospital and for customers visiting the area’s premier golf courses and nearby LEGOLAND California.”
Finally, ESH Strategies Franchise, LLC recently announced the openings of the first Extended Stay America Suites in North Dakota in Minot, as well as a new location in Baytown, TX.
The three-story 66-room property in North Dakota is owned by Elevation LLC and will be operated by National Hospitality Services.
“This new Extended Stay America Suites location represents our first opportunity to extend our brand into North Dakota,” stated Mark Williams, Managing Director, Franchise Development,. “This property will serve the growing demand for extended-stay lodging in the area and continues our strategy of growing the brand.”
Meanwhile, the Extended Stay America Suites in Baytown, TX, is a three-story 82-room property owned by WIG Baytown LLC. “This opportunistic investment and partnership with Extended Stay America will allow us to deliver a memorable experience for our guests in the Baytown market,” stated Miraj Patel, President, Wayside Investment Group. “We look forward to continuing to find and establish strategic long-term partnerships to invest in hospitality real estate to deliver strong cash-on-cash returns,”
“We are excited to add another property in the greater Houston market,” said Mark Williams, Managing Director, Franchise Development. “This property is located in a market with a diverse economic base and solid demand drivers and allows us to offer guests a clean, comfortable suite whether staying for a night, a week, or longer.”
