NATIONAL REPORT— Embassy Suites is hot on the trail of “new blood.” Specifically, VP/Brand Marketing David Greydanus explained the upscale, full-service Hilton Hotels brand views this hunt to be a matter of necessity as the organization looks to build its critical mass to some 300 locations over the course of the next seven years. “The Embassy Suites product was ‘invented’ 20 years ago, primarily as a product for the business marketplace. However, it similarly demonstrated great appeal to the leisure customer as a by-product… thereby contributing to its current property count of 174 [primarily domestic]hotels,” he said. “Within our [niche in the]market, we’ve been doing quite well— the turbulent conditions of the past few years notwithstanding.” On that note, Greydanus allowed Embassy Suites’ 2003 occupancy rang in at 69% systemwide (as against 74% pre-9/11). What’s more, the outlook for the current year portends more improving news as the brand forecast 2004 occupancy to end in the neighborhood of 72% (again systemwide). On the other side of that coin, Greydanus did admit rates have definitely felt the pinch… but even there, positive developments seem to be in the offing. “Since 2000, we’ve lost somewhere between 6% to 8% in ADR… but this year we should see the first upturn [between 2% and 4%]in this area since 2000.” Another point in the brand’s favor has been its comparative mid-week to weekend ADR strength. “As Smith Travel Research pointed out,” Greydanus said, “there has historically been a 12% discount in ADR between midweek and weekend business. However, our discount has only amounted to about 2%.” One characteristic that may well go a long way toward supporting this rate-stability is Greydanus’ contention Embassy Suites’ occupancy levels hold fairly consistent from Monday to Saturday, with the lone marked guest fall-off occurring on Sundays. Again, he suggested much of this can be traced back to the fact the Embassy Suites product has shown itself to be “appealing to virtually all customer segments,” working almost equally well in resort destinations as it does in suburban, downtown, airport, big- and small-market locations. As such, growing the brand would seem to shape up as no impossible task. In terms of how that growth would likely be carried out, Greydanus pointed to the company’s past history as something of a measuring stick for going forward. “All our locations [except four]at this time are franchised… but Hilton still manages roughly half of all Embassy Suites out there,” he said. As such, he added he doesn’t see any real reason why this ownership mix would change very much going forward. From a property-development perspective, the brand vp offered: “Much of our growth will probably come about through new construction, although we are now looking at some conversion opportunities… provided the situation works and warrants it.” Evidence of the brand’s thinking along these lines is demonstrated by the former 325-room Hyatt property (now operating as an Adam’s Mark) in Winston – Salem, NC. To hear Greydanus tell it, when the brand finishes the $10-million task of combining every two rooms to create one suite, the end result will be an Embassy Suites of some 150 to 155 units, slated to open its doors in the first quarter of 2005. Of course, this undertaking brings about a property considerably larger than the “average” Embassy Suites hotel. “Our average room-count is about 248— but we have properties offering anywhere from 100 to 512 units,” Greydanus said. Moreover, he pointed out new construction— on a cost-per-key basis— can vary according to the tier in which the property sits. “Tier 1 properties generally run around 250 suites and can cost between $140,000 and $175,000 per key, while Tier 2 products usually fall in at approximately 150 suites and cost between $120,000 and $140,000 per key,” Greydanus explained. However, he added there is more on the horizon— i.e. Tier 3— that would
