Choice Buys WoodSpring Suites
$231M acquisition includes 240 extended-stay hotels
Choice Hotels Intl. Inc. has completed its acquisition of the WoodSpring Suites extended-stay brand and franchise business from the flag’s namesake parent company. The $231 million deal involves nearly 240 hotels in 35 states, including franchise operations, marketing and development. WoodSpring’s hotel management operations will remain a separate company and be renamed Nationwide Hotel Management Co. LLC.
The acquisition, which was first announced in December, brings Rockville, Maryland-based Choice’s extended-stay portfolio to more than 350 properties, joining its existing brands, MainStay Suites and Suburban Extended Stay.
“Choice has a strong pipeline for its new-construction brands, including Cambria, Sleep Inn, MainStay and Comfort, and this acquisition offers another new-construction brand for our growth-oriented developer community,” says said Patrick Pacious, president and ceo, Choice Hotels. “More importantly, the acquisition enables us to incorporate best practices from WoodSpring’s proven model across our extended-stay brands, and further strengthens Choice's position as a leader in both hospitality and franchising.”
According to Choice, the WoodSpring brand’s highlights include 21 percent RevPAR growth and 48 percent Gross Room Revenue (GRR) growth over the last three years; increased net units by more than 25 percent since 2014 with nearly 20 properties currently under construction; and an overall focus on newbuilds, with most of its hotels having been built within the last seven years.
In addition, a private real estate fund sponsored by Brookfield Asset Management Inc. simultaneously completed its buyout of more than 100 company-owned hotels from WoodSpring. That partnership is also expected to serve as a source of future growth for the brand and Choice, according to the company.