Hotel & Motel Management - October 15, 2007 - (Page 36)

36 News H&MM October 15, 2007 | HotelMotel.com Extended-stay supply Mid-2002 226,847 231,453 239,067 250,749 263,769 273,410 History Continued from page 1 extended-stay rooms are opening per quarter. It also said it will take more than two years for the 34,641 rooms under construction to be added to the current supply of 273,410 extended-stay rooms. The number of rooms under construction was 51.2 percent more than the number of extended-stay rooms under construction at the same time in 2006. The length of the development process tends to take longer. For instance, the plans for a MainStay Suites property now under construction in O’Fallon, Ill., were hatched four years ago, said Kevin Lewis, Choice Hotels International’s v.p. of extended-stay. “It takes so long for things to get done,” Lewis said. “The permitting process is much more intense than it ever has been.” Growth and development The rate of growth is not lost on industry executives. “Up until a few years ago the majority of growth in hotels was extended-stay,” said M.J. Paschall, vice president of AKA, a division of Korman Communities. “It’s still an immature industry. It’s hard to get travel agents, travel managers and relocation managers to change booking habits.” AKA is a luxury extendedstay brand that has seven hotels that Paschall describes as a “boutique hotel combined with extended-stay on steroids.” It has more than 400 guestrooms in midtown Manhattan, about 100 in Philadelphia and more than 400 in the Washington area. Rob Radomski, v.p., brand management for InterContinental Hotels Group’s Staybridge Suites brand, echoed Paschall’s thoughts. “There’s just a lot of development out there,” Radomski said. Mid-2003 Mid-2004 Mid-2005 Mid-2006 Mid-2007 Source: The Highland Group You’ve known Braman Furniture International for our Casegoods “Whether it’s at the entitlement stage, the architectural stage, or site work, when it gets into actual labor, we’ve been through a period here where there’s been a heavy demand. Building has been up. These services are being used, and there’s only so many people to go around.” Gary DeLapp, president and c.e.o. of Extended Stay Hotels, the largest extended-stay hotel company with 683 properties, said much of the growth is in tertiary markets. Radomski said the proof that the extended-stay concept is catching on is easy to measure. “We will put up a ﬂag in a market, and we’ll see that extended-stay demand come right in and ﬁll up that hotel,” he said. “There’s still a lot of extended-stay business out there not being served by extended-stay hotels. “We’re starting to see a bit of a shift in extended-stay,” he said. “While demand is still growing, supply is growing at a little greater rate. We’re starting to see a drop in occupancy to a small extent, but nothing terribly alarming.” Brand evolution The segment is proving itself in other ways, according to The Highland Group’s report: Revenue per available room increased 5.1 percent in the second quarter of 2007. Demand increased 3 percent in the ﬁrst half of 2007, while demand in the overall hotel industry grew 0.9 percent in the second quarter, according to Smith Travel Research. Extended-stay hotel average daily rate grew 5.7 percent in the ﬁrst half of 2007. Not all of the news was great, however; overall extended-stay occupancy decreased 0.9 percent to 74.2 percent during the ﬁrst half of 2007. Don’t expect the construction rate to slow. Many brands have record pipelines. “Our goal over the next couple of years is to have 20 to 30 AKA See History | page 38 & Upholstery NOW GET TO KNOW OUR NEWEST LINE KITCHEN E L E M E N T S V i s i t w w w. b r a m a n f u r n i t u r e . c o m f o r o u r s h o w s c h e d u l e or call (877) 329-3296 for more information CIRCLE NO. 145 http://HotelMotel.com http://www.bramanfurniture.com http://www.bramanfurniture.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - October 15, 2007

Hotel & Motel Management - October 15, 2007 Contents Concord Sets Goal to Double Portfolio Leaders: Budgetel Brand Off and Running Pension Funds Put More Capital Into Hotels Perspective Letter to the Editor At Your Risk Consultant's Corner Sales Clinic On Finance Guest Column Trends & Stats Industry Leaders Say Healthy Times Will Continue Eco-Concious Hotels Looks for Certification Events Removing Chemicals, Suds from Housekeeping Products Handhelds Help Track Safe Activity People on The Move Awards Transactions Supplier News Ad/Editorial Index Bath Trends Marketplace Classifieds Checking Out

Hotel & Motel Management - October 15, 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.