McLEAN, VA—With the recent opening of the Embassy Suites Baltimore-Downtown, Embassy Suites celebrated its sixth new hotel opening for 2013, underscoring the brand’s inflated pipeline and potential for significant growth. John Rogers, global head of Embassy Suites Hotels, recently indicated that the full-service brand, which opened three hotels in 2012, has more than 35 development deals in the pipeline.
Earlier this year, Embassy Suites announced plans to grow the portfolio by 25% over the next three years to reach 300 properties. The brand—which is one of 10 brands in the Hilton International lineup—currently has 212 properties in its portfolio; 205 domestic and seven international. The brand attributes its recent increase in development to the Embassy Suites Hotels’ Design Option III prototype. First introduced in 2009, this prototype has generated significant developer interest, according to the company.
“Embassy Suites Hotels has seen a shift in pace during the past six months,” said Rogers. “We are pleased for the change of pace in growth. We feel we are right on track. Our development team is as excited as we are. Right now, there is a strong interest for secondary and tertiary markets.”
The brand has strategically honed in on opportunities in urban downtown markets, noted Rogers. One such example is the former Tremont Plaza Hotel in downtown Baltimore, which reopened in June under the Embassy Suites brand. The 37-story Embassy Suites Baltimore-Downtown hotel now features 300 remodeled guestrooms, modernized public areas and the Grand Historic Venue, which has 45,000 sq. ft. of meeting space.
“As we’re focused on growing the brand in urban markets, this is an excellent demonstration of how our flexible design approach can meet the needs of a downtown location,” said Rogers.
During the first half of 2013, Embassy Suites Hotels has opened six new hotels. In addition to the Embassy Suites Baltimore-Downtown, the brand has opened hotels in Salt Lake/West Valley City, UT; Knoxville West, TN; Chattanooga-Hamilton Place, TN; Springfield, VA; and Savannah, GA. Embassy Suites also has planned openings in cities such as Charlotte, NC, in 2015; Louisville, KY, in 2014; Richland, WA, in 2015; and Grand Rapids, MI, in 2015.
“We’re thrilled to bring the Embassy Suites Hotels experience into markets that we believe will help anchor these locations,” said Rogers. “These properties provide an excellent demonstration of our design prototype, which is a win-win for both developers and our guests.”
The brand’s Design Option III prototype and flexible “kit of parts” approach to development, according to Rogers, has played an integral role in spurring growth in key urban markets. The design option attempts to decrease the costs, enabling the brand to capitalize on a variety of new development opportunities especially for adaptive reuse projects, which have been the core of Embassy Suites’ new direction. “New-builds for full-service hotels are not back yet for the upscale market,” said Rogers. “The current trend is reinvesting in older hotels.”
The Design Option III uses space effectively, creating efficiencies for construction and operational costs, said Rogers. The option is also scalable to different market needs. He added that developers get the benefits of offering the same Embassy Suites guest experience with better guest satisfaction and the potential of higher operating margins. The new design helps achieve the same type of revenue and ADR premiums as the traditional design. “All these attributes make our Design Option III a solid investment for developers,” said Rogers.
The design prototype features a side-by-side suite design, which fills the room with more natural light. “Our design prototype offers a greater sense of space and, therefore, a more residential feel,” said Rogers. The two-room suites come with a separate living area, private bedroom and wet bar fitted with a microwave, mini fridge, coffeemaker and two flat-screen, HDTVs. “The two-room format is great for families,” said Rogers.
Aside from the guestrooms, the Design Option III provides enhanced public spaces, such as the contemporary atrium space, one of the focal points of every Embassy Suites hotel. It features natural elements, flowing water and a barrel vault ceiling. Other features include maintaining offerings that are characteristic of the Embassy Suites brand, including free cooked-to-order breakfast and a nightly Complimentary Evening Reception with appetizers and beverages.