Woodspring Suites

For ambitious investors contemplating entry into the dynamic hospitality sector, the fundamental challenge lies in identifying a franchise opportunity that not only promises robust returns but also offers a resilient, scalable operating model in a high-demand segment. The fear of significant capital deployment into an unproven concept or an oversaturated market is a primary concern. WoodSpring Suites emerges as a compelling contender, expertly navigating these investor anxieties by positioning itself as a reliable guide in the economy extended-stay hotel segment. This brand's journey began in 2003, when hospitality visionary Jack DeBoer, renowned for pioneering the extended-stay concept with Residence Inn and Candlewood Suites, founded Value Place in Wichita, Kansas. The inaugural Value Place hotel opened its doors in Wichita in 2004, laying the groundwork for what would become a significant force in affordable, longer-stay accommodations. In a strategic move to better articulate its commitment to guest comfort and quality, the company rebranded from Value Place to WoodSpring Suites in April 2015, under the leadership of CEO Bruce Haase, acknowledging that the previous name had caused customers to be "reluctant to stay." This evolution culminated in December 2017 with its acquisition by Choice Hotels International, Inc. (NYSE: CHH) from private equity firm Lindsay Goldberg for approximately $231 million, firmly embedding WoodSpring Suites as a subsidiary within a global hospitality powerhouse. Headquartered in Rockville, Maryland, under the leadership of Patrick Pacious, President and CEO of Choice Hotels International, WoodSpring Suites now benefits from extensive corporate resources and strategic direction. As of December 2024, the brand boasts a substantial footprint across the United States, operating 256 hotels comprising 30,846 rooms, a significant expansion from the more than 250 hotels in over 38 states reported as of March 31, 2019, and marking a key milestone with its 300th hotel opening by September 24, 2021. This consistent growth trajectory, coupled with its focus on providing affordable, apartment-style accommodations for longer stays, firmly establishes WoodSpring Suites as a dominant player within the economy extended-stay market, a segment valued at USD 54.52 billion in 2023, offering a reliable and scalable model for franchise investors seeking a proven pathway to success.

The global extended-stay hotel market presents a substantial and rapidly expanding opportunity, with its size valued at USD 54.52 billion in 2023. Projections indicate a remarkable ascent, with the market expected to grow to USD 146.04 billion by 2032, demonstrating an impressive Compound Annual Growth Rate (CAGR) of 11.6% over the forecast period. Other analyses corroborate this robust expansion, estimating growth from $61.08 billion in 2025 to $65.71 billion in 2026 at a CAGR of 7.6%, further accelerating to $88.92 billion in 2030 at a CAGR of 7.9%, while another forecast projects a market size of approximately USD 137.3 billion by 2034 from USD 53.4 billion in 2024, growing at a CAGR of 9.9% from 2025 to 2034. This sustained growth is propelled by powerful consumer trends, including a surge in remote work assignments necessitating flexible long-term housing, the persistent demand for corporate travel accommodations, the increasing number of infrastructure projects requiring temporary housing for crews, and a general preference for flexible lodging options. Consumers are increasingly seeking fully furnished suites that offer a home-like guest experience, coupled with the adoption of flexible pricing models tailored to extended stays. The expansion of the tourism sector also significantly fuels this market, as extended-stay hotels cater effectively to leisure travelers, business professionals, and long-term guests desiring comfort and convenience. WoodSpring Suites directly benefits from these secular tailwinds, operating within the economy and mid-priced extended-stay segments that have consistently outperformed in occupancy and delivered steady cash flows. This specific market niche addresses a critical demand for temporary housing from diverse demographics such as traveling nurses, construction crews on infrastructure projects, relocating families, and individuals on extended vacations. The demand for this segment has notably been outpacing supply by nearly two to one, creating a favorable environment for growth. In 2024, travelers alone accounted for 44.9% of the extended-stay hotels market, emphasizing the need for flexible and amenity-rich accommodation. Furthermore, the 26-35 years age group led the market with a 34.2% share in 2024, primarily comprising young professionals and business travelers, a key demographic for brands like WoodSpring Suites. While major global players like Marriott International, Hilton Worldwide, and InterContinental Hotels Group collectively hold approximately 40% of the market share, regional leaders, including Choice Hotels (which encompasses WoodSpring Suites), Wyndham Hotels, and Accor, collectively command around 25% of the market, focusing strategically on affordability and flexible long-term lodging solutions. WoodSpring Suites has carved out a particularly strong competitive position, accounting for approximately 94% of the economy extended-stay rooms under construction at the end of 2022 and constituting the majority with 114 projects (66%) out of 172 lower-tier extended-stay development projects in the pipeline as of June 2023, underscoring its significant role in shaping the future landscape of this thriving industry.

Investing in a WoodSpring Suites franchise represents a substantial capital commitment within the hospitality sector, reflecting the scale and operational complexity of hotel ownership. The initial franchise fee for a WoodSpring Suites property is $50,000. For properties with 122 rooms or less, the affiliation fee is set at $50,000, while for each additional room beyond that threshold, an incremental fee of $300 per room applies, with a minimum of $60,000 specified for transfers and renewals of existing agreements. The total initial investment required to establish a WoodSpring Suites franchise spans a broad range, from $8,277,000 to $10,946,000, according to one detailed source, while another indicates a slightly wider spectrum of $8,229,200 to $13,293,300. Earlier data from 2022 suggested a range of $5,035,000 to $7,031,000, illustrating the evolving costs associated with development. These comprehensive figures encompass all necessary expenditures to finance the commencement of the franchise, as meticulously outlined in the franchisor's Franchise Disclosure Document. Specific expenditure breakdowns highlight the significant construction costs, ranging from $7,371,240 to $9,009,212 for construction and associated consultation/advisory services. Furniture, Fixtures, and Equipment (FF&E), including initial inventory and essential systems, represent a cost between $689,056 and $842,288. Exterior signage, crucial for brand visibility, requires an investment of $40,000 to $100,000. Insurance costs are estimated between $45,000 and $165,000, and initial training, travel, and living expenses for personnel during the training period typically fall within the $7,000 to $9,000 range. Beyond the initial outlay, franchisees are subject to ongoing fees, including a royalty fee of 6.00% of gross revenues, which compensates the franchisor for the use of its brand, systems, and support. Additionally, a national advertising (or brand fund) fee of 2.50% is required, contributing to system-wide marketing and brand development initiatives. To qualify for this significant investment, a minimum liquid cash requirement of $1,900,000 is stipulated, underscoring the brand's positioning as a premium franchise investment within the hotel sector, accessible primarily to well-capitalized individuals or investment groups. The backing of Choice Hotels International, Inc., a major global hospitality company that acquired WoodSpring Suites for $231 million, provides substantial corporate stability and resources, which is a critical consideration for financing such a large-scale project.

The operational model of a WoodSpring Suites franchise is meticulously designed for efficiency and profitability within the extended-stay segment, emphasizing a lean yet effective approach to daily operations. Franchisees can expect to manage a property purpose-built for longer visits, typically featuring 122 all-suite rooms, each equipped with a full kitchen, free Wi-Fi, and access to on-site laundry facilities. This apartment-style accommodation caters directly to the needs of traveling professionals, families, and healthcare workers seeking a home-like environment for extended durations. The staffing requirements for a WoodSpring Suites property are notably lean, with approximately 6 or 7 full-time employees typically sufficient to operate a property with around 122 rooms. This efficient labor model is a cornerstone of the brand's strategy, contributing directly to its reported gross operating profit margins that exceed 60%. The operational efficiencies are further enhanced by minimal food and beverage offerings, reducing complexity and overhead, and a bi-weekly housekeeping schedule, which aligns with the longer-stay guest profile and further minimizes labor costs. Comprehensive training programs are a fundamental component of the WoodSpring Suites support structure, provided by its franchisor, Choice Hotels International. The initial training program is mandatory for the property manager and other designated personnel, and it must be completed prior to the hotel's opening. This intensive program, which one source states is conducted over a period of five weeks at the WoodSpring Suites corporate office, is designed to instill a thorough understanding of system standards and operational procedures, ensuring brand consistency and high service quality across the network. Beyond initial training, franchisees receive robust ongoing operational support and access to a comprehensive suite of resources. Choice Hotels dedicates a specialized extended-stay team, which comprised more than 60 professionals as of June 2023, providing end-to-end support that includes best-in-class design guidance, tailored operational assistance, and dedicated sales training. While WoodSpring Suites does not typically provide exclusive territory protection to its franchisees by default, with each franchise granted for a specific site, the franchisor retains the right to establish other franchises or company-owned hotels, including competing brands, in nearby areas. However, under specific conditions, such as favorable market factors or a strong history with the brand, the franchisor may grant exclusive territories or preferred regions, though these provisions are subject to termination if the franchisee defaults on agreement terms. The lean staffing model and structured support suggest that while an owner-operator model is feasible, a highly engaged and operationally astute management team, whether directly from the franchisee or a hired professional, is critical for maximizing the inherent efficiencies of the WoodSpring Suites business model.

For prospective investors evaluating the financial viability of a WoodSpring Suites franchise, it is important to note that Item 19 financial performance data is not disclosed in the current Franchise Disclosure Document provided in the database. However, supplementary information from other sources, which references FDD Item 19 data, provides valuable insights into the brand's potential financial performance. These external data points indicate potential yearly gross sales of $2,074,971 for a WoodSpring Suites unit. Furthermore, estimated owner-operator earnings are reported to range from $311,246 to $414,995, offering a tangible perspective on the potential profitability for a hands-on franchisee. The estimated Franchise Payback Period, derived from these figures, is projected to be between 31.1 and 33.1 years, a metric that reflects the significant initial investment required for a hotel property. A standout financial indicator for WoodSpring Suites is its impressive gross operating profit margins, which are reported to be above 60%. This performance significantly outpaces many economy competitors in the hospitality sector. This high profitability is directly attributed to the brand's efficient operating model, which leverages high occupancy rates, coupled with lean staffing needs and the inherently longer guest stays characteristic of the extended-stay segment. The model's emphasis on minimal food and beverage offerings and bi-weekly housekeeping further contributes to these robust margins by controlling operational expenses. The consistent growth trajectory of the brand also signals strong unit-level performance. Since its acquisition by Choice Hotels in 2018, WoodSpring Suites has demonstrated substantial expansion, including a 22% increase in its pipeline to 110 hotels in the first quarter of 2019 and a record six hotel openings in a single month in May 2023. This aggressive growth, coupled with Choice Hotels' projection for its entire extended-stay portfolio, including WoodSpring Suites, to grow by 15% annually for the next five years, suggests strong confidence in the brand's economic model and its capacity to generate attractive returns for franchisees. The fact that WoodSpring Suites accounted for approximately 94% of the economy extended-stay rooms under construction at the end of 2022, and 114 projects (66%) of the lower-tier extended-stay development pipeline in June 2023, further reinforces the market's positive outlook on the brand's financial prospects and its ability to attract substantial investment.

The growth trajectory of WoodSpring Suites has been nothing short of impressive, particularly since its acquisition by Choice Hotels International in December 2017 for approximately $231 million, an event that significantly bolstered Choice Hotels' extended-stay presence by over 200%. This strategic acquisition ignited a period of substantial expansion for the brand. As of March 31, 2019, there were more than 250 WoodSpring Suites hotels open in over 38 states, with an additional 100+ properties in the pipeline. By September 24, 2021, the brand achieved a significant milestone with the opening of its 300th hotel, demonstrating consistent unit growth. The momentum continued, with more than 200 WoodSpring Suites hotels open domestically and over 300 hotels in the pipeline across the U.S. as of December 31, 2022. By December 2024, the brand had further solidified its presence with 256 hotels and 30,846 rooms operating across the United States. The pace of expansion post-acquisition was rapid; in the first quarter of 2018, WoodSpring Suites awarded 33 new franchise agreements, marking the highest quarterly activity in its history, with 31 of those agreements coming after the Choice acquisition. Plans for 2018 included 17 hotel openings and more than 50 groundbreakings. This growth strategy reached a new peak in May 2023, when WoodSpring Suites set a brand record by opening six hotels in a single month across diverse states, including its first property in New York, alongside new locations in Texas, Virginia, Illinois, Florida, and California. These openings alone contributed 732 new economy extended-stay rooms, bringing the total new rooms for the brand to 1,414 since the start of 2023. Choice Hotels projects its entire extended-stay portfolio, including WoodSpring Suites, to grow by an impressive 15% annually for the next five years, signaling sustained confidence in the segment. The brand's competitive moat is built upon its highly efficient operating model, purpose-built design for longer stays (featuring full kitchens, free Wi-Fi, and laundry facilities in all 122-room suites), and lean staffing requirements (only 6-7 full-time employees for a typical property), which collectively drive high occupancy rates and gross operating profit margins above 60%. The robust backing of Choice Hotels International provides unparalleled scale, resources, and brand recognition, further solidifying its market position. WoodSpring Suites continues to adapt to market conditions by strategically expanding into new territories such as upstate New York, New England cities, Montana, and Idaho, while simultaneously reinforcing its presence in high-demand states like Florida. This expansion is further validated by significant investment activities, such as Noble Investment Group's acquisition of sixteen WoodSpring Suites extended-stay properties in May 2025, underscoring the brand's enduring appeal and strong market position.

The ideal WoodSpring Suites franchisee is typically a sophisticated investor or an investment group with substantial capital and a strong understanding of the hospitality sector, or at least experience in large-scale project management. Given the minimum liquid cash requirement of $1,900,000 and a total initial investment ranging from $8,277,000 to $13,293,300, candidates must be well-capitalized. While direct hotel management experience is beneficial, the comprehensive training program provided by Choice Hotels International, including a five-week initial program at the corporate office for property managers and designated personnel, aims to equip franchisees with the necessary operational knowledge. The lean staffing model of approximately 6-7 full-time employees for a 122-room property suggests that while day-to-day operations are streamlined, a highly engaged and competent management team, whether directly from the franchisee or a professional general manager, is essential for maintaining service standards and operational efficiencies. Multi-unit ownership is a common expectation and a pathway for growth within the WoodSpring Suites system, as evidenced by the brand's rapid expansion and the acquisition of multiple properties by investment groups like Noble Investment Group. Available territories are focused primarily within the United States, with specific growth initiatives targeting new markets such as upstate New York, New England cities, Montana, and Idaho, while continuing to strengthen its presence in high-demand states like Florida. The brand’s impressive pipeline of over 300 hotels across the U.S. as of December 2022 indicates significant opportunities for new development. The timeline from signing a franchise agreement to opening a WoodSpring Suites hotel involves navigating the extensive construction process and completing the mandatory training. The franchise agreement terms are designed for long-term commitment, and while exclusive territory protection is not granted by default, the possibility exists under specific conditions such as favorable market factors. The clear articulation of an affiliation fee of a minimum of $60,000 for transfers and renewals indicates a structured process for the eventual resale or continued operation of the franchise.

For investors seeking a robust franchise opportunity within a high-growth segment of the hospitality industry, WoodSpring Suites presents a compelling investment thesis. The brand's efficient operating model, characterized by lean staffing and high occupancy rates, drives exceptional financial performance, evidenced by gross operating profit margins consistently above 60% and potential yearly gross sales reaching $2,074,971. The substantial backing of Choice Hotels International, a global leader in hospitality, provides unparalleled brand recognition, extensive resources, and a strategic vision for continued expansion, including a projected 15% annual growth for its extended-stay portfolio over the next five years. WoodSpring Suites directly addresses the escalating demand for affordable, long-duration accommodations, a trend fueled by remote work, corporate travel, and infrastructure projects, consistently outperforming in occupancy rates within its segment. While the initial investment is significant, requiring substantial liquid capital and a comprehensive development plan, the core unit economics and strategic market positioning offer a strong upside for well-capitalized and operationally adept franchisees. The brand’s impressive growth trajectory, including a record six hotel openings in a single month in May 2023 and a robust development pipeline, underscores its market strength and future potential in a sector where demand continues to outpace supply. For investors navigating the complexities of franchise selection, PeerSense offers unparalleled independent analysis. PeerSense provides exclusive due diligence data including FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools, empowering you to make informed decisions. Explore the complete WoodSpring Suites franchise profile on PeerSense to access the full suite of independent franchise intelligence data.