CHH Expands Innovative Solutions With New Lobby in a Box Package

Following positive results from its Kitchen in a Box initiative, Choice Hotels International, Inc. CHH is expanding its portfolio of innovative solutions for extended stay hotel conversions by introducing Lobby in a Box. This exclusive design package helps convert public spaces into functional, revenue-generating areas, specifically for Suburban Studios and MainStay Suites, with transformations completed in about 120 days.

This new Modular Design Package from Choice Hotels provides a quick solution for creating lobby spaces tailored to long-stay guests. The Lobby in a Box, delivered in a ready-to-assemble crate, enables hotel owners to adapt their lobbies to cater to guests who prefer in-room dining.

This design transforms standard lobby dining areas in transient hotels and helps hoteliers generate additional income for the MainStay brand through a marketplace offering on-the-go food, beverages and essential travel items. This initiative aims at key extended stay markets with high entry barriers. It provides a quicker and more affordable alternative to traditional new construction.

With the increasing demand for extended stay accommodations, tools like Lobby in a Box and Kitchen in a Box enable franchisees to capitalize on emerging opportunities. These solutions enhance the experience for long-staying guests by providing tailored options. CHH is dedicated to streamlining the conversion process, helping hotel owners achieve greater returns on investment while creating spaces that are both functional and profitable.

Addressing Increased Demand

The company's Lobby in a Box and Kitchen in a Box solutions address the industry-wide demand for fast and efficient hotel conversions, as extended stay demand exceeds supply. In many instances, obtaining financing for these conversions is easier than for new builds because repurposing existing properties involves a lower risk profile.

Since launching Kitchen in a Box in the spring of 2022, the company has implemented it in more than 30 hotels, with six additional projects planned. Three of these will also feature Lobby in a Box in their renovations. These proprietary solutions are driving Choice Hotels' rapid expansion in the extended stay segment, positioning it to open its 500th extended stay property this year.

CHH’s Price Performance

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Shares of this global hotel franchisor have gained 8.5% in the past three months compared with the Zacks Hotels and Motels industry’s 8.2% growth. Strong demand trends across the company’s diversified portfolio of brands and synergies through the Radisson Hotels Americas integration, along with international market reach expansion, are favoring the growth trajectory.

CHH’s Zacks Rank & Key Picks

Choice Hotels currently carries a Zacks Rank #3 (Hold).

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