Suburban Studios

Navigating the complex landscape of franchise investment presents a significant challenge for prospective owners, who often grapple with the fear of selecting a brand with unproven unit economics, opaque financial requirements, or insufficient corporate support, ultimately risking substantial capital in an increasingly competitive market. The extended stay hotel segment, however, stands out as a robust category, and the Suburban Studios franchise emerges as a compelling opportunity under the formidable Choice Hotels International umbrella, directly addressing these investor concerns with a structured, conversion-focused model. Originally established as "Suburban Lodge" in 1987 by Atlanta-based Suburban Lodges of America, its foundational 126-room hotel opened strategically in Forest Park, Georgia, near Hartsfield-Jackson Atlanta International Airport, signaling an early understanding of traveler needs for longer-term accommodations. The brand underwent several transformative phases, including its acquisition by InTown Suites in May 2002, which encompassed 65 company-owned and 62 franchised properties, alongside the Guesthouse International Hotel franchise, before the franchised Suburban Lodge locations were spun off to form Suburban Franchise Systems. In a pivotal move, Choice Hotels acquired Suburban Franchise Systems, then known as Suburban Extended Stay Hotels, for US $10 million in 2005, subsequently rebranding it to "Suburban Extended Stay" and later to its current identity, "Suburban Studios," in 2022, complete with a new logo and modernized room designs, exemplified by the first transitioned location in Chicago. Currently a subsidiary of Choice Hotels International, Inc. (NYSE: CHH), headquartered in North Bethesda, Maryland, with Patrick Pacious at the helm as President and CEO, and dedicated extended stay leadership including Ron Burgett, Senior Vice President of Extended Stay Development, and Anna Scozzafava, Vice President and General Manager of Extended Stay, the Suburban Studios franchise has demonstrated remarkable growth, exclusively operating across the United States. Since its 2022 relaunch, the brand achieved a milestone of 100 hotel properties by December 2023, reflecting an impressive 45% growth in just 18 months, with the 100th Suburban Studios hotel opening in Bloomington, Minnesota, and further expanding to 111 locations by the end of 2024, with 31 additional properties in the pipeline as of December 2023. This rapid expansion positions the Suburban Studios franchise as a significant player in the economy extended stay market, offering investors a clear pathway into a high-demand sector with strong corporate backing and a proven growth trajectory.

The extended stay hotel sector represents a substantial and rapidly expanding total addressable market, exhibiting compelling growth rates that underscore its attractiveness for franchise investment. Globally, the extended stay hotel market was valued at USD 57.7 billion in 2024 and is projected to surge to USD 98.8 billion by 2030, demonstrating a robust Compound Annual Growth Rate (CAGR) of 9.5% from 2025 to 2030, with another report indicating a market size of USD 54,525 million in 2024, expanding to USD 137,922.05 million by 2032 at an even higher CAGR of 12.3%. The U.S. extended stay hotel market alone is projected to reach USD 21.7 billion by 2025 and is anticipated to nearly double to USD 43.4 billion in 2034, growing at a CAGR of 8.0%, highlighting a significant domestic opportunity. Key consumer trends are powerfully driving this demand, including evolving travel patterns, a pronounced increase in demand from business travelers seeking longer assignments, and the rising popularity of extended stays among leisure travelers who prioritize cost-effective accommodation options with home-like amenities. Secular tailwinds further benefit the Suburban Studios franchise and the broader extended stay industry, with over 1.8 million extended stay hotel units operational globally in 2024, serving an estimated 640 million guest nights annually, and recording an average occupancy rate of 78%, which significantly outperforms the 66% average observed in traditional hotels. The economy segment is projected to lead the extended stay market by type in 2025, capturing 52.0% of the global market share, driven by cost-conscious travelers and corporate clients, while domestic tourists are expected to maintain dominance with 68.0% of the total market share in 2025, propelled by a shift towards longer, more immersive travel experiences. Moreover, business travel applications are projected to account for 39.0% of the market share in 2025, and digital bookings constituted 74% of all reservations in 2024, with mobile bookings reaching 48%, reflecting modern guest preferences and operational efficiencies. The industry's competitive dynamics, while seeing new entrants, are characterized by a fundamental imbalance where demand for extended stays is double the current supply of purpose-built extended stay products, creating substantial opportunity for brands like Suburban Studios that leverage efficient conversion models to quickly bring properties to market. Macro forces such as the increasing flexibility of remote work, economic shifts favoring value-driven lodging, and the growing trend of "bleisure" travel further amplify the appeal of the extended stay category, making it an attractive sector for strategic franchise investment.

Investing in a Suburban Studios franchise involves a structured financial commitment, beginning with the franchise fee, which is reported to be $30,000 according to a 2022 FDD preview, though other sources indicate a range of $40,000, aligning with the typical initial investment for a hotel franchise that generally falls within a competitive range for the economy segment. The total investment range for establishing a Suburban Studios franchise presents a significant capital outlay, with estimates for opening a Suburban Extended Stay Hotel (the previous brand name) between $4,332,035 and $8,168,613, and more recent FDD Item 7 figures indicating a total investment range of $8,183,050 to $12,989,550. This wide spread is primarily driven by factors such as the format type—whether it involves new construction, which typically commands higher costs, or a hotel conversion, which significantly reduces the initial capital expenditure—as well as geographical considerations and specific build-out requirements. The liquid capital required for a Suburban Studios franchise is a critical component of the investment profile, with one source suggesting a minimum of $1,000, while another more comprehensively indicates a minimum cash required of $1,875,000, underscoring the necessity for substantial accessible funds. Ongoing fees include a royalty rate for Suburban Studios, which is a minimum of 5% of gross room revenue, a figure that falls within the general industry range for hotel royalty fees, typically spanning from 2-6% of gross room revenue. Franchisees are also obligated to contribute to marketing and reservation systems, with these contributions often ranging from 1-4% of gross room revenue for hotel franchises, in addition to loyalty program fees charged on qualifying revenues. Overall, the total cost of ownership, encompassing initial fees, ongoing royalties, marketing contributions, and technology system charges, can range from 8-12% of a hotel's gross revenue, with higher-scale hotels generally incurring higher associated expenses. For hotel conversions, which represent a core growth strategy for the Suburban Studios franchise, the cost is approximately US$2,700 per room for hard goods and about US$5,000 in all-in costs, making this pathway significantly more cost-effective and faster to market. Furthermore, franchisees should budget for Furniture, Fixtures, and Equipment (FF&E) reserves and periodic renovations, which can be managed either as a set reserve, often 4-5% of revenue, or on a more flexible, as-needed basis. Given the substantial total investment range, particularly for new construction, the Suburban Studios franchise opportunity positions itself as a premium investment within the economy extended stay segment, though its emphasis on conversions provides a more accessible entry point for developers. The backing of Choice Hotels International, Inc. (NYSE: CHH), one of the largest lodging franchisors globally, provides significant corporate support and brand recognition, further solidifying the investment's foundation.

The operational blueprint for a Suburban Studios franchise is meticulously designed for efficiency, catering specifically to the needs of longer-term guests while optimizing labor and resource allocation. Daily operations for a franchisee are streamlined, focusing on an "efficient operating model to help keep these hotels easy and affordable to run," which translates into a core service offering that prioritizes essential amenities for extended stays. The staffing requirements for a Suburban Studios property are notably reduced compared to traditional full-service hotels, a key advantage that contributes to better bottom-line performance for franchisees by minimizing labor costs. This lean labor model is supported by the brand's focus on amenities like in-room kitchens, 24/7 laundry facilities, and bi-weekly housekeeping, rather than daily service, which empowers guests to be more self-sufficient and lowers the operational burden on staff. The primary format option for Suburban Studios is centered around hotel conversions, allowing developers to repurpose existing transient hotels into extended stay properties, a strategy that accelerates market entry and reduces upfront construction costs. A significant innovation facilitating these conversions is the "Kitchen in a Box" modular kitchen design package, introduced in spring 2022, which is engineered to fit any existing hotel room with just six linear feet and is designed to match existing plumbing, thereby controlling conversion costs. This modular solution has proven highly effective, with two out of three developers utilizing "Kitchen in a Box" to enter the extended stay segment since its relaunch. The initial training program for Suburban Extended Stay Hotel franchisees is typically two weeks in length, providing comprehensive instruction on the brand's operational standards, customer service protocols, and property management systems. Beyond initial training, Choice Hotels International provides extensive ongoing corporate support, positioning Suburban Studios owners as part of the "Choice extended-stay family," benefiting from a dedicated team of seasoned extended-stay professionals. This support structure includes dedicated resources from regional area directors, specialized sales training, robust quality assurance programs, and brand support exclusively focused on the unique dynamics of extended stay hotels and their success. Franchisees gain access to cutting-edge technology platforms, including the choiceEDGE guest reservation platform and the choiceADVANTAGE property management system, which are cloud-based solutions designed to simplify and streamline hotel operations by assisting owners in managing room rates, distribution channels, and inventory effectively. While specific territory information and exclusivity details are not extensively provided, the broader Choice Hotels framework typically offers defined territories. The operating model is well-suited for both owner-operators who wish to be deeply involved in daily management and multi-unit investors who can leverage experienced management teams to oversee multiple properties, capitalizing on the brand's efficient and scalable design.

For the Suburban Studios franchise, Item 19 financial performance data is not disclosed in the current Franchise Disclosure Document, meaning specific average revenue per unit, median revenue, or detailed profit margins are not publicly available directly from the franchisor. However, an analysis of publicly available data, industry benchmarks, and the brand's strategic positioning provides substantial insight into the potential financial performance and underlying unit economics. The search results indicate that RevPAR (Revenue Per Available Room) is expected to range from US$30 to US$40 for conversion properties, which, when combined with the extended stay segment's higher average occupancy rate of 78% compared to the 66% average for traditional hotels, suggests a strong revenue generation capacity per available room. Choice Hotels, the parent company, delivered an impressive $1.94 billion in consumed revenue via its channels in 2025 and accounted for 14.5 million corporate room nights booked in 2024, demonstrating the immense scale and market reach of the overarching system that supports the Suburban Studios brand. The extended stay market itself is characterized by a fundamental imbalance where demand is double the supply of purpose-built extended stay products, creating a favorable operating environment that can lead to increased occupancy and potentially higher profits for franchisees. Furthermore, the economy segment, which Suburban Studios occupies, is projected to lead the extended stay market by type in 2025, accounting for 52.0% of the global market share, underscoring the brand's strategic alignment with a dominant and growing consumer preference for value-driven accommodations. The operational model of Suburban Studios, with its emphasis on "reduced labor requirements," directly contributes to better bottom-line performance by minimizing one of the largest variable costs in hotel operations. The rapid turnaround time for conversions, as little as three to four months, allows developers to bring properties to market quickly and potentially see returns sooner, improving the payback period on their investment. While specific Item 19 figures are absent, these robust industry trends, high occupancy rates, efficient operating model, and the significant financial scale of the parent company collectively signal a strong potential for unit-level performance and profitability within the Suburban Studios franchise system, making it an attractive proposition for investors seeking a high-growth, operationally efficient model in a high-demand sector.

The Suburban Studios franchise has embarked on an impressive growth trajectory, marked by significant expansion and strategic developments under the Choice Hotels International banner. Since its relaunch in 2022, the brand has demonstrated exceptional momentum, reaching a milestone of 100 hotel properties by December 2023, representing a substantial 45% growth in just 18 months, with the 100th location opening in Bloomington, Minnesota. This rapid acceleration continued with five hotels opening in October 2023 and an additional eight in November 2023, culminating in a total of 111 locations across the U.S. by the end of 2024, with 31 more Suburban Studios properties in the pipeline as of December 2023. This expansion follows a baseline of over 70 Suburban Extended Stay properties in March 2022, with 27 Suburban Studios already in the development pipeline at that time. A key driver of this growth and a significant competitive advantage is the brand's focus on hotel conversions, which allows developers to enter the extended stay category more quickly and cost-effectively than through new construction, with a turnaround time of as little as three to four months. The "Kitchen in a Box," a modular kitchen design package introduced in spring 2022, stands as a proprietary technology investment that has profoundly shaped the brand's competitive moat, enabling franchisees to convert nearly any transient hotel into an extended stay property with minimal disruption and controlled costs, a strategy embraced by two out of three developers since its introduction. Choice Hotels itself has underscored this strategic focus, reporting a 38% growth in extended stay hotel openings for the first nine months of 2023 compared to the same period in 2022, and an impressive 12% year-over-year increase in its extended stay domestic pipeline to over 47,000 rooms in the third quarter of 2023. In October 2023, Choice Hotels International opened 61 extended stay hotels, including 25 Suburban Studios, further demonstrating the collective strength of its extended stay portfolio. The brand's competitive moat is further strengthened by the immense brand recognition and extensive support network of Choice Hotels International, Inc., one of the largest lodging franchisors globally, providing unparalleled supply chain scale, robust marketing programs, and cutting-edge technology platforms like choiceEDGE and choiceADVANTAGE. The Suburban Studios franchise is actively adapting to current market conditions by capitalizing on the accelerating demand for cost-effective, longer-term accommodations and leveraging its conversion model to quickly expand its footprint in underserved markets, positioning itself as a leader in the economy extended stay segment.

The ideal franchisee for a Suburban Studios franchise is typically an experienced developer or a multi-unit operator with a strong understanding of the hospitality sector and a proven track record in real estate development or hotel management. While specific required experience is not explicitly detailed, the significant investment level and the operational complexities of hotel management suggest that candidates with a robust business background, particularly in asset management or property development, would be well-suited. The model's emphasis on hotel conversions and its "efficient operating model" also indicate a preference for franchisees who are adept at managing projects with a focus on cost-effectiveness and rapid execution. Multi-unit expectations are not explicitly stated, but Choice Hotels International, as a major franchisor, generally encourages and supports multi-unit development from qualified candidates, allowing for economies of scale and diversified portfolios. Available territories for the Suburban Studios franchise are exclusively within the United States, aligning with Choice Hotels' strategic focus on domestic market expansion. The brand is actively targeting growth in Tier-2 cities and suburban areas near major urban centers, identifying these as massive expansion opportunities, with over 380 new extended stay hotel projects announced in non-metropolitan areas globally in 2024, and suburban areas attracting 27% more investment compared to previous years. These markets are often characterized by strong demand for affordable, long-term lodging and present less saturation than primary metropolitan areas, offering favorable conditions for new development. The timeline from signing a franchise agreement to the opening of a Suburban Studios property, particularly for conversions, can be remarkably efficient, with a turnaround time of as little as three to four months, allowing developers to quickly capitalize on market demand and begin generating revenue. The franchise agreement term length is not available, and details regarding transfer and resale considerations are also not provided, requiring prospective franchisees to conduct thorough due diligence by reviewing the full Franchise Disclosure Document. The brand's strategic focus on conversions in high-growth suburban and secondary markets positions it as an attractive opportunity for seasoned developers looking to expand their hospitality portfolio with a proven, support-backed model.

For investors seeking to capitalize on the booming extended stay hotel market, the Suburban Studios franchise presents a compelling investment thesis, grounded in its strategic positioning within the economy segment and the robust backing of Choice Hotels International. The opportunity is framed within an industry context of sustained high demand, where the global extended stay hotel market is projected to reach USD 98.8 billion by 2030, growing at a CAGR of 9.5%, and the U.S. market alone is expected to hit USD 43.4 billion by 2034. Suburban Studios directly addresses this demand with an efficient operating model designed for "Longer Stays Made Easy," boasting an average occupancy rate of 78% for extended stay properties, significantly higher than traditional hotels, and benefiting from demand that is double the supply of purpose-built extended stay products. The brand's innovative "Kitchen in a Box" modular conversion package allows for rapid, cost-effective market entry, enabling developers to see returns in as little as three to four months, a crucial advantage in capital-intensive industries. While Item 19 financial performance data is not explicitly disclosed, the brand's impressive growth of 45% in 18 months to 100 locations by December 2023, coupled with Choice Hotels' $1.94 billion in consumed revenue and 14.5 million corporate room nights booked in 2024, provides strong indicators of a vibrant and well-supported system. The reduced labor requirements inherent in the extended stay model further enhance potential profitability for franchisees. PeerSense provides exclusive due diligence data including SBA lending history, FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools. Explore the complete Suburban Studios franchise profile on PeerSense to access the full suite of independent franchise intelligence data.