Extended stay is here to stay—and it’s getting further capital backing.
In the latest show of faith in the extended-stay hotel segment, Highside Companies, a development group focused on extended-stay development, has secured a $500-million financing package from Apollo to fuel the growth of Everhome Suites, a midscale extended-stay brand of Choice Hotels International. The transaction, which HOTELS first reported on during the recent ExStay Conference outside Washington, D.C., is reportedly one of the largest extended-stay financings in the U.S. midscale segment in recent time.
Highside was founded in 2019 and is a deep player in extended-stay hotel development. The new loan facility will be used by Highside to continue to expand its portfolio of Everhome Suites, supporting approximately 35 existing and new projects that are expected to be completed in the next five years across the U.S. in both existing and new markets. Highside today has over $1 billion in active projects across the U.S. and Canada. Beyond Everhomes, it’s also an active developer of Cambria Suites, an upscale brand also owned by Choice Hotels.
In a press release, Highside said it plans to scale rapidly and deepen its footprint in high-growth submarkets where demand for extended stay accommodations continues to surge.
“We believe that this transaction will allow Highside to accelerate the national rollout of our Everhome Suites development program during a time of extremely constrained growth of new extended-stay hotel development,” said Justin Roberts, CEO of Highside Companies. “We continue to lean into the asset class. We are long-term believers in Everhome Suites and the broader extended-stay model and will continue to grow our portfolio aggressively.”
Roberts added that Highside’s strategy is to build a diversified institutional-sized portfolio of extended-stay assets over the next five to 10 years. The new facility, he said, puts Highside on track to accomplish the goal.
“We are pleased to support Highside and Choice Hotels with this customized financing solution to accelerate the growth of the Everhome Suites portfolio,” said Scott Weiner, a partner at Apollo and global head of real estate credit, calling extended-stay a segment with continued strong demand fundamentals.
Added Matt McElhare, VP of extended-stay brands for Choice Hotels International, “This agreement marks a pivotal moment for Everhome Suites. With Highside’s demonstrated development expertise and our best-in-class extended stay playbook, we’re positioned to accelerate the nationwide expansion of Everhome Suites at a time when demand for extended stay accommodations continues to rise. This investment reinforces our shared commitment to delivering long-term, high-quality growth and meeting the evolving needs of today’s travelers, owners and developers alike.”
Highside is said to be actively pursuing additional partnerships and development opportunities across North America. The company aims to grow its extended-stay holdings to a nationally diversified portfolio exceeding $2 billion over the next decade.
