MINNEAPOLIS—Since its creation in 1989, the Country Inns & Suites brand has always held a special place within parent company Carlson Hotels Worldwide, but with 500 hotels now on the horizon it seems it has finally established its place among the lodging industry’s significant midscale limited-service brands as well.
The 20-year-old chain— which had some 485 hotels open as of press time—is expected to reach the 500-property milestone sometime in early 2010, according to Steve Mogck, executive vp and COO of Country Inns & Suites for the Americas. Mogck, who cited the brand’s competitive set as chains such as Holiday Inn Express and Hampton Inn by Hilton, noted that the brand is starting to gain some real traction in development circles and reach critical mass.
“It’s been good growth. Even in the midst of a downturn, we’ve still been signing new deals. It’s critical to expand distribution and we’re beginning to hit real critical mass. We’re becoming a brand developers are going to. We’re getting those phone calls now,” Mogck said.
Country Inns & Suites has opened 17 hotels thus far this year and expects to open as many as 36 new hotels by the end of 2009.
Mogck enumerated some of the reasons that the brand has gained favor among many owners and developers. “We’re a straightforward company to deal with. We have good training and operating systems and we have it down to a very precise level,” he said.
Mogck also added that flexibility was a key component for the brand, which includes locations throughout the country. “We allow hotel developers to do some regionalization. They want it to be theirs,” he said, noting that can include different stone exteriors depending on region as well as different color palettes.
Mogck also noted that one of the objectives for the brand is to continue to gain visibility, and with the vast majority of Country Inns & Suites hotels in tertiary locations, entering major urban markets is very much a priority. “We are looking at more of the major markets,” he said.
While Mogck also noted that because of the price of land there are “differences in product, we’ve been working hard to develop a prototype.”
The brand is already in metropolitan markets such as Phoenix, San Diego, Denver, Atlanta, Indianapolis, New Orleans, Houston and Dallas as well in suburbs of major cities such as Washington, Chicago and New York. In fact, the company is currently constructing a property in Queens, NY, just minutes outside of Manhattan. Mogck said he is hoping to open the property by Sept. 1.
“As the hotel was constructed, my operations team has been deeply involved with the developers. We have some great hints at how you can keep [the brand’s]DNA [in an urban location],” Mogck said.
Part of that DNA is the brand’s residential feel, with a fireplace, a porch, a library, wood floors and warm colors all integral parts of the design. In fact, Mogck called it the “antithesis of W,” which is known to be stark and less inclusive.
While Mogck acknowledged that it has been a challenging year because of reduced demand, he believes Country Inns as well as the entire midscale without food & beverage segment are in good position. “Our segment will be one of the first to come out,” he noted.
Mogck further maintained that the brand stands to benefit long term from the ongoing trend of guests trading down from both full-service hotels as well as higher-end limited service properties. “We’re nicely positioned for that. There’s a [business]traveler that would have been at full service last year and now their per diem is less,” he said.
However, Mogck added, it’s not just a short-term plan. “We feel we’ll be able to retain those guests when things begin to turn up. Going after the upper end of the market has been a fruitful strategy,” he said.
Part of that strategy includes an aggressive marketing campaign to increase consumer awareness of the brand, which is somewhat counterintuitive to what one might expect at this time. “It’s the first national ad campaign we’ve launched. We’ve spent more in marketing this year than even before,” Mogck said, adding that the brand wanted to update the way it talked to its customers.
Mogck added that he has spent the better part of three years making sure the company’s guest satisfaction index scores are rising before coming out to deliver the company’s message through a comprehensive ad program.
Another important part of the brand’s strategy is the national rollout of a revenue management system developed in conjunction with JDA. With an automated pricing system called Stay Night Automated Pricing (SNAP), Mogck noted one of the main benefits is its ability to shop the competitive set and provide pricing recommendations for properties. The rollout will begin in the fall of 2009 and continue into 2010.
In addition to Country Inn & Suites, Carlson Hotels Worldwide has four other brands, including Radisson Hotels & Resorts, Park Inn and Park Plaza as well as its luxury Regent offering. However, Mogck, underscored the brand’s special place within Carlson. “We made this brand. This is ours from the ground up. There is a corporate pride different from everything else. My mission for the last three years is to keep it strong from the ground up,” he said.
Part of remaining strong necessitates more hotels being completely renovated. Mogck said he is often asked about when the renovation program is going to end and he has an easy response. “Never. Any system that has failed has done so because they have an end date,” he said.
And as Country Inn & Suites prepares to reach the 500-property mark, the company is hoping this is just the beginning.