Extended Stay Expands In Florida With Port Charlotte Hotel
Zacks Investment Research | Mar 16, 2020 09:53PM ET
In a bid to expand its footprint across the coast of Southwest Florida, Extended Stay America, Inc. (NASDAQ:STAY) announces the opening of a brand new hotel in Port Charlotte.
Situated at 24100 Beatrix Blvd, this new four-storied, 124-roomed property is in proximity to shopping and dining places as well as popular attractions such as Charlotte Sports Park, Port Charlotte Beach Park, Cracker Barrel Old Country Store, Starbucks (NASDAQ:SBUX), Applebee’s Neighborhood Grill + Bar and LongHorn Steakhouse.
This largest mid-priced extended stay hotel brand will be offering fully-equipped rooms and in-kitchens to satisfy customers’ needs. Additional services like free onsite parking, complimentary WiFi, a fitness room, laundry room and grab-and-go breakfast are also provided. Notably, management is confident regarding the success of the property.
The opening of the Port Charlotte location will mark the 55th hotel opening in Florida, after the inauguration of Extended Stay America Gibsonton on Dec 10, 2019. Judi Bikulege, chief investment officer for Extended Stay America, stated,” Extended Stay America Port Charlotte marks the only extended stay hotel located within 20 miles north or south of the fast-growing area, offering a great opportunity for the Extended Stay America brand to establish a strong footprint along the coast of Southwest Florida.”
Constant Unit Growth to Boost Performance
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, which provides it a competitive advantage.
At the end of 2019, Extended Stay America had a pipeline of 75 hotels with nearly 9,100 rooms. To drive revenue per available room (RevPAR), the hotelier is banking on increasing unit growth. The company anticipates that its portfolio will likely have 700 Extended Stay America branded properties by 2021, out of which, nearly 70% will be owned or operated and 30% will be franchised.
Although the company’s initiatives toward controlling costs and lowering capital requirement for fresh hotel builds are commendable, lack of exposure in international markets amid stiff competition are concerns. In the past year, shares of Extended Stay have plunged 62.8% compared with the Original post
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