PARSIPPANY, NJ— Villager Franchise Systems has closed a deal with Home & Hearth that involves the rebranding of 14 Home & Hearth extended-stay hotels as Hearthside Extended Stay Studios by Villager. The agreement gives Villager Lodge a new offering in the mid-market segment of the extended-stay segment. In addition, the two companies are about to break ground on five more sites, which will also be branded under the new name. The next five properties, slated for Las Vegas; Reno, NV; Phoenix; Austin, TX; and Denver, will expand the brand’s portfolio, giving them a total of 19 in a very short amount of time. “Home & Hearth Incorporated has initial plans to develop 10 properties per year [itself]. Beginning [last month], we’ll [have]started vigorously franchising the brand across the country,” noted Ken Rodgers, Villager’s president/CEO. “With the backing of Villager’s franchising sales support staff, we should realistically be able to add 30 properties per year for the next four to five years.” According to Rodgers, the relationship between the two companies stemmed from Home & Hearth’s desire to take their concept to the next level and Villager’s desire to pursue a new-build, mid-market, extended-stay concept. “Over the past three years Home & Hearth has had tremendous success in occupancy, revenues and cash-on-cash return on investment. When you get to a certain size and are experiencing that kind of success, it’s important that you buy an insurance policy for the future to maintain and exceed that level,” said Rodgers. “Villager can offer Home & Hearth the reservations, national marketing, training programs and brand recognition it needs going forward.” There are 12 existing properties located in different cities across Texas, Nevada and Colorado. Two properties are now under construction in Las Vegas and Aurora, CO. Plans call for Las Vegas to be a target market for the new brand; four to five properties will be developed there, according to executives. Although the new brand will initially be concentrated in the Southwestern U.S., Rodgers said that going forward, the two companies intend to grow the Hearthside Extended Stay Studios by Villager portfolio by entering markets in the Southeast. The Hearthside by Villager prototype— developed by Home & Hearth president/ COO Dale Bullough— features 140 guest units with four separate room types ranging from suites to studios. According to Rodgers, the prototype can stray from the 140 figure, but will always remain within the 120- to 140-suite range. “Our goal is obtain 85%-plus, system-wide occupancy. We are looking forward to a long and prosperous relationship with Home & Hearth, and I not only think we will achieve all the goals we have set together, I know we will,” added Rodgers.
