CIM Group Bets Big on Extended-Stay With $167M WoodSpring Suites Loan

LOS ANGELES, CA – January 12, 2026 – In a significant move underscoring the sustained investor appetite for the extended-stay hotel sector, CIM Group has closed a $167.67 million loan package to recapitalize a 15-property WoodSpring Suites portfolio. The financing, provided to affiliates of seasoned operators Concord Hospitality and Whitman Peterson, highlights a strategic pivot by the real estate giant and reflects the enduring strength of a hospitality niche that has consistently outperformed the broader market.

The portfolio of hotels spans four states—Florida, Michigan, North Carolina, and Tennessee—positioning the investment across key regional economies. The loan is structured with an initial funding of $117.67 million, with an additional $50 million available through an earn-out provision, designed to fuel future growth opportunities and potential expansion. This transaction is a clear signal of institutional confidence not just in the WoodSpring brand, but in the fundamental business model of extended-stay lodging.

The Resilient Allure of Extended-Stay

The extended-stay hotel segment has emerged as a powerhouse within the hospitality industry, prized for its resilience during economic downturns and its lean, efficient operating model. While the broader hotel industry faced unprecedented challenges in recent years, extended-stay properties demonstrated remarkable stability. During the 2020 pandemic, for example, the segment saw its demand drop by a mere 15.8%, a fraction of the decline experienced by traditional hotels.

This resilience is a key driver behind the flood of investment capital. The global extended-stay market, valued at approximately $57.7 billion in 2024, is projected to soar to nearly $99 billion by 2030, reflecting a robust compound annual growth rate of 9.5%. The economy segment, where WoodSpring Suites is a dominant player, is expected to lead this charge, accounting for over half the global market share.

Investors are drawn to the model's superior profitability. With guests staying for weeks or months at a time, these properties require less frequent housekeeping and fewer front-desk staff, resulting in lower operational costs and healthier profit margins, which often average between 40-45%. This creates a stable, predictable revenue stream that is less susceptible to the daily volatility of transient tourism. Demand is also incredibly diverse, coming from corporate relocations, project-based business travelers, individuals between homes, trades workers on long-term assignments, and the growing ranks of digital nomads.

CIM Group's Calculated Hospitality Pivot

For CIM Group, a community-focused owner, operator, and developer with over $60 billion in projects since 1994, this loan is more than just a single transaction; it's a cornerstone of a deliberate strategic shift. In 2023, the firm’s CIM Real Estate Debt Solutions business formally sharpened its focus on the select-service and extended-stay hospitality sectors. The company believes its deep, hands-on experience as a real estate owner and operator gives it a competitive edge over traditional lenders, allowing it to better underwrite and structure complex deals.

This strategy is already bearing fruit. In 2025 alone, CIM-managed funds originated more than $1 billion in commercial real estate loans, including a notable $75 million loan for a select-service hotel in San Diego. The WoodSpring Suites deal is the latest and one of the largest public examples of this new focus, demonstrating the firm's commitment to deploying significant capital into what it views as a high-conviction asset class. By targeting strong operators and best-in-class brands, CIM is methodically building a robust debt portfolio in a sector known for its durable cash flows.

Powering a Best-in-Class Portfolio

The recipients of the financing, Concord Hospitality and Whitman Peterson, are far from passive investors. Concord Hospitality, founded in 1985, is an award-winning hotel management and development company with a vast portfolio across North America and a reputation as a preferred partner for top-tier brands like Hilton and Marriott. Whitman Peterson, a real estate private equity firm, specializes in partnering with expert operators to scale platforms in opportunistic real estate investments. Their joint venture brings together deep operational expertise with sophisticated investment acumen.

The asset at the center of the deal, the WoodSpring Suites brand, is a standout performer in its own right. As an all new-construction brand under the Choice Hotels International umbrella, it has cultivated a reputation for quality and value. For four consecutive years, WoodSpring Suites has been ranked #1 in guest satisfaction among economy extended-stay brands by the prestigious J.D. Power North America Hotel Guest Satisfaction Index Study. This consistent recognition is built on a simple but effective promise: providing the comforts of home, including in-room kitchens and free Wi-Fi, with the conveniences of a hotel.

The recapitalization is designed to unlock the portfolio's next phase of growth. The initial funding provides immediate capital, while the $50 million earn-out facility acts as a powerful incentive. This structure allows the borrowers to access additional funds as the properties achieve specific performance milestones, such as increased occupancy or revenue targets. This flexible capital can be used for property improvements, acquisitions, or other expansion initiatives, ensuring the portfolio remains competitive and continues to grow its footprint.

Navigating Regional Markets and Debt Realities

The loan lands in a commercial real estate market characterized by both opportunity and caution. While capital is available, lenders are applying tighter underwriting standards and demanding stronger sponsor track records. The markets where the 15 WoodSpring properties are located—Florida, Michigan, North Carolina, and Tennessee—are part of a dynamic Southeast region that continues to attract investment.

Florida, in particular, is transitioning from a period of super-charged, post-pandemic growth to a more sustainable, normalized phase. While average daily rates remain high, occupancy has softened slightly, and lenders are carefully assessing asset performance. The structure of the CIM loan, with its earn-out component, is well-suited to this environment. It provides the borrowers with growth capital while giving the lender assurance that additional funds are only deployed as the assets prove their ability to perform, mitigating risk in a fluctuating market.

This sophisticated financing structure reflects a broader trend in CRE debt, where deals are tailored to align the interests of both borrower and lender. As the hospitality landscape continues to evolve, strategic investments in well-located, professionally managed, and resilient assets like this WoodSpring Suites portfolio are poised to deliver value for all stakeholders involved.