Wingate Inns Expands Its Geographic Reach

ST. AUGUSTINE, FL— Wingate Inns’ second-ever business conference was filled with news of technology and marketing initiatives aimed at helping the nearly five-year-old brand grab more of its share from the upper mid-market segment. Addressing the nearly 350 attendees, Wingate President/ CEO Keith Pierce laid out plans for the Cendant-owned brand, which recently opened its 100th property, in Concord, NC. All told, Wingate, an all new-build, high-tech product, has 130 properties either open or under development, and more than 240 franchises for the flag have been sold, said Pierce, who noted that a large part of Wingate’s future distribution growth will be derived from the 41 developers that have two or more Wingate hotels under construction. “Wingate has evolved from a primarily southeastern brand to an international one,” said Pierce, noting that a property is currently under construction in Calgary, with plans for more Canadian properties in the works, thanks to a 10-property agreement signed with Superior Lodging Corp. earlier this year. More Wingate Inns will be appearing in the Northeast, said Pierce, particularly in New Jersey and Long Island. Deals have also been signed for hotels in Rhode Island, Pennsylvania and Maryland. “We really just look for steady growth,” Pierce told HOTEL BUSINESS®. “That steady growth is going to fluctuate with the economy, the stock market, the financial markets and a lot of other variables. But we’d like to grow at the rate of 25 to 30 new construction hotels a year.” Pierce noted that he hopes the brand’s new, smaller, 64-room prototype will help the brand “add a couple of extra properties to our annualized number” by getting locations in urban areas that it would not have been able to get previously. The first smaller prototype will open in San Diego. “At that rate, we’ll be doing 100 every three years,” Pierce said. As for geographical parameters required for a Wingate site, Pierce said, “The requirements are strong demand generators. And they can be non-corporate demand generators. For example, you could be across from a Six Flags theme park, so for four months out of the year you’re doing incredible leisure business. At the end of the day it just has to be a strong market, made up of different generators and segments. “Of course, the primary generator is the corporate traveler, an office park environment, in a strong primary or secondary environment with a strong RevPAR. Those are the sites that have been our bread and butter for the last four years,” said Pierce. The Wingate CEO noted that maintaining the brand’s overall RevPAR is an important sales tool for attracting new franchisees. “Once you establish your brand RevPAR you sell off of that when you are selling more franchises. So if you are positioned in a 70% to 80% RevPAR, you’re selling in the upper midmarket.” As a result, for developers seeking to build in the upper midmarket, “you’re part of the selection process,” said Pierce. “So strong RevPAR strength is part of the long-term strength of the brand. So we can’t drop [Wingates] in tertiary markets, because that will negatively affect our overall RevPAR.” At the conference, Lisa Theodore, Wingate’s new vp/marketing, gave attendees a look at the brand’s new television commercials. The television ads use the brand’s first-ever on-location television commercial shoot to create three 15-second spots— two business-oriented and one leisure-oriented— and one 30-second generic spot that target both business and leisure travelers. The ads highlight product consistency, while emphasizing the brand’s all-inclusive pricing model with a strong emphasis on free high-speed Internet access. The ads— loudly applauded by franchisees at the conference’s general session— are set to appear on the MSNBC and Fox News Network. Cendant’s Technology Initiatives John Paul Nichols, Cendant’s chief marketing officer and executive vp, meanwhile, gave an update on Cendant’s technology