Choice Hotels International Unveils Exclusive and Proprietary "Lobby in a Box" to Streamline Extended Stay Hotel Conversions and Elevate the Guest Experience

Rhea-AI Summary

Choice Hotels International (NYSE: CHH) has introduced Lobby in a Box, a proprietary modular design package for its Suburban Studios and MainStay Suites brands. This innovation allows hoteliers to transform lobby spaces into multi-functional areas tailored for extended stay guests in as little as 120 days. The package complements the previously launched Kitchen in a Box, which enables the installation of fully equipped kitchens in guest rooms within 3-4 months.

These solutions aim to streamline hotel conversions, offering a faster and more cost-effective alternative to new construction in the growing extended stay market. Since its 2022 launch, Kitchen in a Box has been used in over 30 open hotels, with six more in the pipeline. Choice Hotels is on track to open its 500th extended stay property this year, demonstrating rapid growth in this segment.

Franchisees report significant benefits, with one Suburban Studios property noting a 43% increase in year-over-year RevPAR and a 10.2% improvement in guest satisfaction scores after conversion.

Positive

• Introduction of Lobby in a Box, allowing quick conversion of lobby spaces for extended stay properties
• Rapid implementation: lobby conversions in 120 days, kitchen installations in 3-4 months
• Over 30 hotels have adopted Kitchen in a Box since its 2022 launch
• Choice Hotels approaching 500th extended stay property opening
• 43% year-over-year RevPAR increase reported by a converted Suburban Studios property
• 10.2% improvement in guest satisfaction scores for a converted property

Negative

• None.

New Modular Design Package Offers a Quick Way to Implement Multi-Use Lobby Spaces Tailored for Long-Stay Guests, Expanding Choice's Conversion Offerings with the Previously Introduced "Kitchen in a Box"

NORTH BETHESDA, Md., Oct. 7, 2024  /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the largest hotel franchisors in the world, is expanding its portfolio of innovative solutions for its extended stay hotel conversions with the introduction of Lobby in a Box—a proprietary and exclusive to Choice modular design package that allows hoteliers to transform public spaces such as lobby dining areas into multi-functional, revenue-generating spaces in as little as 120 days for its Suburban Studios and MainStay Suites brands.

Delivered in a ready-to-assemble crate, Lobby in a Box empowers hotel owners to easily adapt their lobby spaces to meet the specific needs of long-staying guests, who typically prefer an in-room dining experience thanks to the fully equipped kitchens in rooms of extended stay properties. This approach offers a versatile alternative to convert the standard lobby dining spaces in transient hotels and enables hoteliers to create new income opportunities for the MainStay brand by incorporating a marketplace that features on-the-go food and beverage options, essential travel items, and more.

Building on the success of Choice's Kitchen in a Box—a turnkey solution that has enabled hotel owners to install fully equipped kitchens into guest rooms in as little as 3-4 months—Lobby in a Box continues to drive Choice's expansion into key extended stay markets with high barriers to entry, where conversions offer a faster and more cost-effective alternative to new construction.

"At Choice Hotels, we are proud to be pioneers and innovators in the extended stay segment," said Matt McElhare, vice president and lead for extended stay brands for Choice Hotels. "As the demand for extended stay accommodations continues to exceed supply, solutions like Lobby in a Box and Kitchen in a Box are helping franchisees seize opportunities in a growing market while providing long-staying guests a superior, tailor-made experience. Our goal is to simplify the conversion process and help maximize hotel owners' return on investment by giving them the tools to create spaces that can be both functional and profitable."

Fulfilling Growing Demand

With extended stay demand exceeding supply, Hotels' Lobby in a Box and Kitchen in a Box solutions are meeting an industry-wide need for fast, efficient hotel conversions. In many cases, securing financing for conversions is more accessible than for new builds, due to the lower risk profile associated with repurposing existing properties.

"Choice is known for its best-in-class conversion capabilities, and we're taking it to the next level with Kitchen and Lobby in a Box," said Ron Burgett, senior vice president, extended stay development at Choice Hotels. "Paired with unparalleled support from our dedicated team of over 70 extended stay experts, we are converting transient hotels into extended stay properties quickly."

Since its launch in the spring of 2022, Kitchen in a Box has been utilized in over 30 open hotels, with six more in the pipeline, including three that are also incorporating Lobby in a Box into their renovations. These proprietary turnkey design elements contribute to  Choice Hotels' rapid growth in the extended stay segment, positioning the company to open its 500th extended stay property this year.

Franchisee Success

Hotel owners who have adopted these modular solutions are seeing measurable results. Rushi Vaidya, who converted his transient hotel into a Suburban Studios extended stay property using Kitchen in a Box, noted a 43% increase in year-over-year revenue per available room (RevPAR) and a 10.2% improvement in guest satisfaction scores. "The quick conversion and expert support from Choice Hotels allowed us to transform our property efficiently, and the enhancements have paid off with significant gains in both revenue and guest satisfaction," said Vaidya.

Partners Nick Patel and Supan Shah, owners of the MainStay Suites in Columbus, OH, echoed similar sentiments about the new Lobby in a Box offering. "The design is modern, highly functional, and tailored to the unique needs of extended stay guests. Choice Hotels' support and focus on innovation in this segment has been a key factor in our success," they shared.

With two established conversion extended stay brands—economy-focused Suburban Studios and midscale MainStay Suites—Choice Hotels is poised to continue its leadership in the extended stay market through innovative solutions that cater to both owners and guests alike.

About Choice Hotels®   
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in upscale and a leader in midscale and extended stay, Choice® has nearly 7,500 hotels, representing more than 630,000 rooms, in 45 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.   

MainStay Suites®: Live Like Home  
MainStay Suites is a midscale extended stay brand that allows guests to Live Like Home no matter how long they're away. MainStay Suites hotels offer spacious residential-style suites with fully equipped kitchens, separate areas for working and relaxing, a marketplace and 24/7 laundry facilities. With more than 125 locations open across the United States, MainStay Suites provides the conveniences of home plus the perks of staying in a hotel — like weekly housekeeping, a fitness center, free Wi-Fi and more. To learn more, visit www.choicehotels.com/mainstay. 

Suburban Studios®: Hotels for Real Life  
Suburban Studios offers longer-staying guests a comfortable, affordable extended stay experience with hassle-free registration and just the right hotel amenities. With more than 100 locations across the United States, our hotels feature studio suites with in-room kitchens, 24/7 laundry facilities, free Wi-Fi and premium movie channels, and bi-weekly housekeeping. For more information, visit www.choicehotels.com/suburban. 

Forward-Looking Statements    
This communication includes "forward-looking statements" about future events, including anticipated development and 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 and our Quarterly Reports on Form 10-Q, 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: development@choicehotels.com.    

© 2024 Choice Hotels International, Inc. All Rights Reserved    

 

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SOURCE Choice Hotels International, Inc.

FAQ

What is Lobby in a Box introduced by Choice Hotels (CHH)?

Lobby in a Box is a proprietary modular design package that allows hoteliers to transform lobby spaces into multi-functional areas tailored for extended stay guests in as little as 120 days, for Choice's Suburban Studios and MainStay Suites brands.

How long does it take to implement Kitchen in a Box for Choice Hotels (CHH) properties?

Kitchen in a Box allows hotel owners to install fully equipped kitchens into guest rooms in as little as 3-4 months.

What results have franchisees seen after using Choice Hotels' (CHH) conversion solutions?

One Suburban Studios property reported a 43% increase in year-over-year RevPAR and a 10.2% improvement in guest satisfaction scores after conversion using Kitchen in a Box.

How many Choice Hotels (CHH) properties have used Kitchen in a Box since its launch?

Since its launch in spring 2022, Kitchen in a Box has been utilized in over 30 open hotels, with six more in the pipeline.

What milestone is Choice Hotels (CHH) approaching in the extended stay segment?

Choice Hotels is on track to open its 500th extended stay property this year, demonstrating rapid growth in this segment.