What's Happening?
Choice Hotels International has launched its MainStay Suites brand in Australia, marking the brand's first expansion outside North America. This introduction includes seven new properties located in Melbourne, Whyalla, Mackay, and Townsville. The move
is part of Choice Hotels' strategy to strengthen its presence in the extended stay segment in international markets. The addition of these properties increases Choice Hotels' Australian portfolio to 163 hotels and 7,487 rooms. The Australian market is experiencing a rise in demand for extended stay accommodations, driven by sectors such as business, healthcare, government, and construction. MainStay Suites aims to meet this demand by providing apartment-style accommodations with hotel amenities, including fully equipped kitchens, spacious living areas, laundry facilities, and dedicated workspaces.
Why It's Important?
The expansion of MainStay Suites into Australia is significant as it taps into the growing demand for extended stay accommodations in the region. This demand is fueled by various sectors, including business, healthcare, government, and construction, which require longer-term lodging solutions. By offering apartment-style accommodations with hotel amenities, Choice Hotels is positioning itself to capture a larger share of this market. Additionally, the move is part of Choice Hotels' broader international growth strategy, which includes recent developments in China, Japan, and Latin America. This expansion provides opportunities for investors and developers interested in the growing extended stay sector, with options for both new builds and conversions.
What's Next?
Choice Hotels' entry into the Australian market with MainStay Suites is expected to provide opportunities for investors and developers interested in the growing extended stay sector. All MainStay Suites properties in Australia will participate in the Choice Privileges loyalty program, allowing members to earn and redeem points at over 7,100 hotels worldwide. The brand's entry into Australia is part of a direct franchising agreement with Extended STAY Australasia, a company that has been pivotal in developing the extended stay concept in the region. This collaboration allows Choice Hotels to leverage Extended STAY Australasia's local expertise and operational capabilities.
Beyond the Headlines
The expansion of MainStay Suites into Australia reflects a broader trend in the hospitality industry towards catering to extended stay guests. This trend is driven by the increasing need for flexible accommodation options that can serve various sectors, including business, healthcare, and government. The collaboration with Extended STAY Australasia highlights the importance of local expertise in successfully entering new markets. Furthermore, the participation in the Choice Privileges loyalty program enhances the value proposition for guests, offering them more options for earning and redeeming points globally.
