ATLANTA— Two years after reinventing itself as a standalone, franchisee-owned chain, Suburban Franchise Systems, Inc. is reaffirming its commitment to quality— defining brand standards to ensure a consistent guest experience, as well as focusing on system growth via property and business development. That commitment— on several levels— is being drilled down here at the Georgia Tech Hotel and Conference Center, where 138 owners, general managers and management company reps are gathered through April 30 for the extended-stay hotel chain’s two-day second annual conference. “Quality is not just lip service. It’s what we are all committed to,” said Kevin Lewis, Suburban’s President/CEO. “A commitment to quality is a commitment to revenue and profits.” Lewis kicked off the conference Thursday morning with a look back at the chain’s accomplishments over the past two years since a spin-off consortium of Suburban Lodge multiunit franchisees decided to carve an independent company following the merger of InTown Suites Management, Inc. and Suburban Lodges of America in May 2002. The company has gone through a relaunch of the brand, changed its central reservations system, implemented consumer promotions and a website, plus garnered guest research, all while staying buoyed by its segment niche during the economic downturn of the past several years. “We are a relatively young system when you look at other hotel chains. Close to 99% of our hotels are new construction with an average age just a little over five years. So we’re coming up to that point where we’re starting to implement some of our product refurbishment programs that will keep those assets fresh. We don’t want to lose or tarnish the image that we have since we are predominantly new construction,” Lewis told HOTEL BUSINESS®. “It’s important that we maintain the level of quality that we currently have and don’t fall behind the curve.” “Everybody’s happy that we appear to have bottomed out and occupancy is better all around for us in our traditional hotels as well as extended stays,” said William “Bill” Bowen, chairman/CEO of Tifton, GA-based Premier Hotel Corp., which with nine Suburbans in its 18-hotel portfolio is the largest franchisee in the system. “Suburban seems to be ahead of the market a little bit, so this conference should be a good gathering with good news and things to go forward with.” Bowen also serves as one of eight members of Suburban’s board of directors. Lewis noted as of first quarter, Suburban’s fundamentals were, indeed, on the rise year over year. Occupancy in Q1 increased to 76.4% from 72% in the year-ago period. Similarly, average weekly rate was up almost $2 to $214.87 from $212.92. RevPAR came in at $158.93 from $153.77 in Q1 ’03. “Each one of us needs to strive for quality in all we do, whether it be a clean, well-maintained room or the latest marketing program,” Lewis told attendees. He later noted two properties had exited the system on quality issues/term expirations. Currently there are 65 Suburban Extended Stay Hotels open via 19 separate franchise groups, with eight under development. Jim Adams, vp/franchise development, noted of three properties under construction, one in Sterling, VA, will be the first five-story Suburban. In addition, the brand will add two new states, Maryland and California, via two properties now under development. Barry Vangrove, director of design and construction, said Suburban’s five-year property refurbishment plan, an evaluation of capital improvements needed to maintain brand standards, is on track; 43 evaluations are scheduled by year’s end, representing two thirds of the system. Day one of the Suburban conference also found Warren Dehan and Mark Kelly, representatives from Canada-based Northwind, demonstrating that company’s Maestro front-office system, which is rolling out within the Suburban chain. Keynote speaker Steven Belmonte, president/CEO of New Jersey-based Hospitality Solutions LLC, g
Kevin Lewis