NATIONAL REPORT— To say the last couple of years have been busy for the extended-stay segment would be an understatement. Increased demand and a strong economy have facilitated not only new brand introductions, but a flurry of development activity as well. While it may not be a new brand, Hilton’s Homewood Suites began this year with a multitude of new property openings. The brand currently has 33 projects scheduled for completion by the end of 2007 and is well on its way with hotels opening recently in Boise, ID; Denver; Indianapolis; and Agoura Hills, CA. The brand reports having approximately 120 new properties in its pipeline. Included in that pipeline are hotels that will be found in such locations as Tulsa, OK; Ithaca, NY; and Hartford, CT, Homewood also anticipates opening its 200th hotel later this year. Additionally, on the international front, Homewood Suites is also set to open its first property in Mexico in Torreon, Coahuila, this July. “The market for upscale extended-stay hotels is very good right now,” said Jay Shinn, CEO of Plano, TX-based Magnolia Lodging Development, LLC, a developer of Homewood Suites properties in the Dallas and Houston markets. The company is also building a TownePlace Suites by Marriott in the Dallas area. “We look for markets with a very strong corporate base, but the ideal location for development is one that has both strong corporate and leisure travelers,” he continued. “If you’re building in a suburban area, the market needs to be fairly deep for extended-stay development because of the rate you need.” With Homewood’s focus on expansion has also come an increased concentration on incorporating amenities that appeal to its customer base with the goal of differentiating itself from other extended-stay brands. For example, Homewood Suites recently debuted its Suite Selection initiative that allows Hilton’s HHonors customers to select the specific room they will stay in online prior to their visit. The brand anticipates having all of its properties having Suite Selection capabilities by the end of the summer. Also making the effort to stand out is Marriott’s TownePlace Suites brand. With more than 120 properties, the brand has revealed plans for a fresh new design. Valparaiso, IN-based Good Hospitality will open the first of the new generation TownePlace properties in Kalamazoo, MI, where the property is currently under construction and scheduled to open late this summer. “It’s totally different,” said Good Hospitality President Jeff Good, who noted the midscale extended-stay brands present new opportunities for developers. “Brands such as TownePlace Suites or Candlewood Suites hit the $75- to $85-price range. Particularly for us in the Midwest, that opens a lot of options for us by having the ability to reach that submarket.” TownePlace is appealing to developers with a design that is more contemporary. “The new TownePlace has a more trendy, upscale look with bold colors like red and orange,” said Good in explaining how the brand has taken cues from the burgeoning lifestyle trend. The modern design is highlighted in the revamped lobby, which features a map wall, an improved breakfast area and a more open check-in. This diversification trend found among the extended-stay brands is a growing trend in all segments of the hospitality industry, as new brands come on line and existing ones strive to reinvent themselves. “Brands are not commodities. There has to be that sense of difference,” said Bjorn Hansen, principal at PricewaterhouseCoopers, which recently released a report that 24 new brands were introduced to the hotel industry since 2005. “Brands know if they can develop a property that meets the needs of a specific set of travelers. That creates loyalty.” InterContinental Hotels Group’s (IHG) Staybridge Suites brand is also in the midst of a very busy year. The eight-year-old upscale extended-stay brand celebrated the opening of its 100th hotel in Tallahassee, FL, earli
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