Denver-based Highside Companies has obtained $500 million in financing from Apollo affiliates to fuel the growth of Everhome Suites, a midscale extended stay hotel brand under the Choice Hotels International umbrella. The deal is among the largest recent financings in the U.S. midscale extended-stay sector.
Founded in 2019, Highside Companies is an established leader in extended stay hotel development as well as other real estate asset classes such as multifamily, self-storage, and industrial. Led by an experienced senior leadership team with significant real estate investment and operating expertise, Highside today has over $1 billion in active projects across the U.S. and Canada. Locally, Highside most recently opened the Cambria Hotel Denver Downtown Rino, another hotel under the Choice Hotels portfolio.
The new facility will enable Highside to continue to expand its portfolio of Everhome Suites, supporting approximately 35 existing and new projects which are expected to be completed in the next five years across the U.S. in both existing and new markets. Highside is positioned as one of the best-capitalized platforms focused on the extended stay segment, and 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. “Highside is a market leader in the extended stay hotel space, and 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. Our plan is to build a diversified institutional-sized portfolio of extended stay assets over the next five to 10 years, and this puts Highside on track to accomplish that 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, Apollo partner and global head of Real Estate Credit. “Justin and team have a wealth of expertise in the extended stay market, which continues to experience strong demand fundamentals, and we look forward to watching Highside and Choice bring their vision for Everhome Suites to life.”
“This agreement marks a pivotal moment for Everhome Suites,” said Matt McElhare, vice president, Extended Stay Brands, Choice Hotels International. “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 actively pursuing additional partnerships and development opportunities across North America, leveraging its vertically integrated platform and strong institutional relationships. The company aims to grow its extended stay holdings to a nationally diversified portfolio exceeding $2 billion over the next decade.
Stifel acted as Exclusive Financial Advisor and Sole Placement Agent to Highside in obtaining the Financing Package.
