Choice Hotels to Buy WoodSpring Suites in Extended Stay Market Play
Photo Credit: A room prototype for WoodSpring Suites. Choice Hotels announced it was buying the economy extended stay brand for $231 million. WoodSpring Suites / WoodSpring Suites
Skift Take
It wouldn't be a proper end of the year in hospitality without at least one more merger or acquisition, right? Choice Hotels' purchase of WoodSpring Suites makes some sense as it bolsters its position in the midscale and economy extended-stay space.
Choice Hotels announced an acquisition of the WoodSpring Suites brand and franchise business from WoodSpring Hotels Holdings for approximately $231 million in cash.
With this deal, Choice would be adding 240 extended stay hotels in 35 U.S. states to its portfolio, which also includes the MainStay Suites and Suburban Extended Stay brands. This would give Choice 350 extended stay properties.
The deal is expected to close in the first quarter of 2018, subject to regulatory approvals and the closing of the sale of WoodSprings' 100 owned hotels to Brookfield Strategic Real Estate Partners II.
WoodSpring Hotels Holdings, which is part of private investment firm Lindsay Goldberg, will be renamed and will retain its hotel management operations.
Why WoodSpring?
According to Choice Hotels' statement on the acquisition, the WoodSpring purchase makes good business sense in this increasingly asset-light and consol
