LivAway Suites, a rapidly expanding premium economy extended-stay hotel brand, has broken ground on two more properties, located in Richland, Washington, and Missoula, Montana. Both locations are expected to open in 2024. Richland and Missoula are the third and fourth groundbreakings so far in 2023 in the brand's growing portfolio.
Chief Executive Officer of LivAway Suites, Mike Nielson, said the plan is to continue developing LivAway Suites across the United States over the next few years.
"A combination of the Federal Reserve's interest rate hike campaign and the regional banking crisis has forced some hotel developers to cancel or postpone projects. Real estate development is tougher today than it was two years ago. LivAway's goal is to make the process easier for ourselves and our development partners via a low fee structure and support programs that streamline the development process," said Nielson.
Keystone National Group, based in Salt Lake City, provided the construction financing for both the Washington and Montana locations and plans to continue providing a financing platform for LivAway Suites hotels nationally.
"The economy extended-stay segment performed incredibly well during the pandemic and the great financial crisis," said Taylor Jackson, partner at Keystone National Group.
"LivAway Suites capitalises on that recession-resilient operating model with better aesthetics, smart technology, and a developer-centric platform. As a capital provider, we also appreciate the low fee structure of LivAway Suites compared with the higher fees typically charged by other brands," said Jackson.
Keystone is currently underwriting other LivAway Suites locations that are expected to break ground later in 2023 and into 2024. With more than 25 projects in various stages of development across the country and strong capital backing, LivAway Suites may be one of the few growing brands during this tumultuous time in the credit markets.
