Extended Stay America Bets Comeback on Adding Franchise Brands
Photo Caption: A room at new mid-priced brand Extended Stay America Premier Suites. Source: Extended Stay America.
Skift Take
Suddenly every hotel group seems to be inventing an extended stay brand. But the pioneer U.S. company in the segment, Extended Stay America, says its new strategy will help it fend off rivals.
It may have taken a quarter century for Extended Stay America to find its stars aligned. Yet several factors, such as U.S. infrastructure spending and the resilience of blended travel, look ready to support U.S. domestic demand for extended-stay hotels. And privately owned Extended Stay America has been adjusting its strategy to benefit from these trends over the next few years.
Three years ago, Blackstone and Starwood Capital Group bought Extended Stay America for about $6 billion. Two years ago, those same giant U.S.-based real estate investors jointly bought 111 WoodSpring Suites to bolster Extended Stay America's portfolio for about $1.5 billion. So how has Extended Stay America's strategy evolved since then?
Some backstory, first: Founded in 1997, Extended Stay America was essentially the first company to gain traction as a national brand for extended-stay properties. Yet the physical offerings and services often felt more like a college dorm than a home-aw
