Extended Stay America (STAY) Opens 16th Property In Arizona
Zacks Investment Research | Dec 16, 2019 09:20PM ET
Extended Stay America (NASDAQ:STAY) , which banks on solid brand presence and continual expansion for growth, has announced the opening of Extended Stay America Chandler Downtown in Chandler, AZ. Notably, this marks the company’s 16th hotel in Arizona.
Situated at 2055 West Chandler Blvd, this new four-storied, 136-roomed property is in close proximity to Pizza Hut, Chick-fil-A and other places to enjoy a quick bite. It also provides guests easy access to the Phoenix metro area, Sky Harbor International Airport and other popular attractions in downtown Phoenix.
Jim Alderman, chief development officer for Extended Stay America, stated that “At Extended Stay America, we take pride in being able to provide a home away from home for guests, and we believe this newly built location in Chandler is the perfect addition to our impressive collection of hotels.”
Strategic Expansion to Spur Growth
This largest mid-priced extended stay hotel brand continues to expand its footprint both domestically and internationally. Recently, the company announced the opening of Extended Stay America Gibsonton in Florida. Extended Stay America also expanded its presence in Houston Area with New Location in Katy, TX.
Extended Stay America is the largest integrated owner and operator of hotels in North America. The company differs from traditional hoteliers by offering prolonged lodging services to self-sufficient guests.
Notably, as of Sep 30, 2019, the company had a pipeline of 77 hotels, representing approximately 9,400 rooms. It also continued to boost its pipeline at 35%. Extended Stay America believes that it will see mid-single-digit percentage net unit growth in twelve years’ time.
To drive revenue per available room (RevPAR), Extended Stay America is banking on increasing unit growth. By 2021, its expects the company’s portfolio to comprise 700 Extended Stay America branded properties, out of which, nearly 70% will be owned or operated and 30% franchised.
However, lack of exposure in international markets amid stiff competition is concerning. So far this year, shares of Extended Stay have declined 5% against the Zacks Investment Research
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