CBRE Podcast: Here to Stay: A look at extended-stay hotels
With a twist on the conventional lodging business model, Extended Stay America (ESA) has seen impressive growth in recent years. ESA CEO Greg Juceam discusses managing its real estate portfolio and provides insights on the business of long-term accommodations.
By Spencer Levy and Greg Juceam
Key takeaways:
- Investment Potential: The extended-stay lodging segment offers a resilient and growing opportunity, particularly in secondary and tertiary markets.
- Operational Simplicity: Extended-stay hotels can benefit from streamlined operations and less labor requirements.
- Scalability: ESA’s model combines ownership and franchising, enabling multiple avenues for growth and scalability.
- Diversified Demand: The diverse range of guest demand drivers -- from construction crews to long-term healthcare treatments to digital nomads -- tends to support stable occupancy rates.
- Strategic Expansion: ESA’s focus on new builds and strategic acquisitions positions it well for future growth, even in challenging capital markets.