KENNESAW, GA— Since its inception, one of the hallmarks of an Embassy Suites Hotel has been its soaring atrium lobby. But with changing times— and changing developer needs— the brand, which is part of Hilton Hotels Corp., last year faced a moment of truth. As a result, a new generation prototype was released in January that rethinks that core atrium. The atrium survives, though on a more modest scale. In the new version, the atrium still contains the hotel’s public spaces, including food and beverage, and is still light-filled. But it’s now two-and-a-half stories. And the suites don’t tower above it. Instead, they’re located behind it in a more traditional guestroom tower. With the prototype finished, the Embassy Suites development team in January faced the inevitable next question: how would developers respond to it? “There’s much more flexibility now. The old prototype required too much land and was too expensive to build. Consequently, the new version works better in more locations. It’s more usable in secondary and even tertiary markets that couldn’t support the scale of the original,” said Dr. Gerald Sapp, owner of GS Development in Tifton, GA. Sapp has agreed to construct the first of the new prototype to go in the ground: a 156 to 160 key property in Kennesaw, GA, a suburb of Atlanta that is home to the state’s second largest university, Kennesaw State. Zoning applications are presently being filed and final design specs are being prepared. Sapp said he expects to begin construction of the seven- or eight-story building in mid-2007 with an opening to follow a year later. “Kennesaw’s an upscale, up-and-coming suburb and we think the hotel will be successful there. In addition to the university, the site is located next to a Class A office park, so there’ll be business travel demand during the week as well,” Sapp noted. GS Development identified the area as a potential development target, acquired the actual site, and then determined that an Embassy Suites would be the right choice of brand. “We have a good working relationship with Hilton, though this is our first Embassy. Aside from the new prototype making sense financially, we like Embassy’s brand standards, all of which— including the complimentary cooked-to-order hot breakfast and the evening reception— are still part of the new prototype,” he said. The realization that the previous generation prototype was no longer a viable economic model took the brand team time to get used to, confirmed Jim Holthouser, senior vp for brand development. “Not only did the box require close to four acres of land and was not cost effective, but we realized it was out of step with energy costs today,” Holthouser said, noting how much the cost of heating and cooling the original soaring atrium had become. Rather than a radical departure, Holthouser terms the new prototype a restatement. “The new smaller atrium is still light filled and feels like an Embassy. Similarly, we’ve retained the water feature that was another brand hallmark, but it too is smaller,” he said. Development sites now are typically 2.8 acres. “We’re taking much more of a ‘kit of parts’ approach, which allows developers a much greater degree of flexibility. Considering the scarcity of choice sites in many markets today, developers want as much flexibility as they can get.” Embassy Suites is hardly alone in endorsing flexibility. “Industry-wide, cookie-cutter layouts just don’t work anymore. Guest expectations are higher, people want something that feels unique,” he noted. Considering final design specs are still being prepared, Sapp wasn’t yet able to give an accurate per key development cost. Holthouser said the new prototype was designed to cost out at $100,000-$110,000 per key, excluding the cost of land. This compares favorably to the $125,000 per key cost to build the previous generation prototype. At 156-160 keys, the Kennesaw Embassy Suites will be right on target for the new design. “Yet if a d
