Hotel & Motel Management - October 15, 2007 - (Page 38)

38 News H&MM October 15, 2007 | HotelMotel.com Key extended-stay numbers porary housing for executives and inbound international travelers. AKA has been able to aggressively drive rate. The rate for its ﬁrst hotel in Manhattan has grown about 20 percent since it opened in 2005. The brand’s model is 25 employees for every 100 guestrooms; a common ratio for full-service hotels is about one employee per guestroom, Paschall said. “We’re not checking in half or two thirds of the house every day, so we can keep overhead down,” she said. Choice Hotels International has 22 extended-stay hotels under construction. It has MainStay Suites and Suburban Extended Stay Hotels in its portfolio. “The rise in construction costs have made that product pretty attractive because you can drive rate more than you can with traditional transient midscale hotels,” Lewis said. Choice will sign more than Occupancy Average rate History Continued from page 36 locations, including in the UK,” Paschall said. “It’s natural feed to northeast corridor, particularly with ﬁnancial houses.” Korman has been around since 1909 and began offering corporate apartments in the 1960s. In the mid-80s, it began offering ﬂexible leases, and by the mid-90s, company executives saw the need for tem- Average revenue available room Mid-2002 Mid-2003 Mid-2004 Mid-2005 Mid-2006 Mid-2007 72.4% 71.1% 72.4% 74.7% 74.9% 74.2% $62.38 $62.43 $63.67 $68.03 $74.60 $78.87 $45.18 $44.36 $46.07 $50.80 $55.90 $58.55 Source: The Highland Group 50 extended-stay deals in 2007, he said. The growth of MainStay Suites is encouraging after Choice redesigned the brand’s prototype. RE cru CO CON Special cleanin and continues to hospitality From c and res consistent roug dedication, industr Our co proven hotel and • ROOM CLEANING • PUBLIC S • RES • LAUND • SUPPLEMEN The King of Clean 1.800.JANIKING | www.janiking.com ©2007 Jani-King International, Inc. | AD0707-0146 (*As Ranked by 2007 Entrepreneur magazine Franchise 500) eneur CIRCLE NO. 117 It cut about $5,000 in costs per guestroom, Lewis said. “We have a real strong rate with Mainstay, the challenge was getting the construction costs in line,” he said. “We cut some of the public space and did a lot with the interior décor to make it more efﬁcient.” IHG’s extended-stay brands have enjoyed a strong run as well. As of June 30, Staybridge Suites had a systemwide ADR of $105, and Candlewood Suites’ systemwide ADR was $70. At that time there were 112 Staybridge properties open and 119 more in the pipeline; Candlewood had 142 properties open and 101 in the pipeline. “There is a lot of exciting growth going on,” Radomski said. “Urban markets, that’s a real shift for the category as a whole.” Staybridge Suites (2009) and Candlewood Suites (late 2008) brands are opening ﬂagship properties in Manhattan. “It’s a little bit of a trade-off on costs; you don’t have as much of a footprint, but you can take advantage of all of that infrastructure,” Radomski said. DeLapp said his company isn’t looking for a lot of development to expand. However, ESH is looking for acquisition candidates. “We’re primarily focused on looking at acquisitions and executing our branding strategy,” DeLapp said. “By advertising and attracting business-class customers, we will be able to continue to drive rate.” Extended Stay America opened one property in California this year, and it is getting a $110 ADR with occupancy around 75 percent, DeLapp said. There remains plenty of opportunity to educate consumers about the segment, the executives said. “More people are having the opportunity to try the product type,” Lewis said. jhigley@questex.com Editor’s note: To purchase a copy of The 2007 U.S. ExtendedStay Lodging Report: Mid-Year Update, call (404) 872-4631. http://HotelMotel.com http://www.janiking.com http://www.janiking.com

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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

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