CHICAGO -- Hyatt is
giving its AmeriSuites unit a new look and a new name: Hyatt Place.
The Hyatt Corp.,
which acquired the extended-stay hotel brand in 2004 from the
Blackstone Group, said it intends to invest at least $150 million
to retrofit, reimage and rebrand the AmeriSuites chain, calling the
new Hyatt Place brand as a leading-edge hotel concept in the
upscale select-service segment. The chain has more than 140
AmeriSuites hotels in 32 states.
Hyatt said it
intends to conduct focus groups with developers and the AmeriSuites
franchise advisory group to develop brand specifics for Hyatt
Place. Designers are developing a newbuild prototype for the
chain.
Hyatt is expected
to release more details of the project at the Lodging Conference in
Phoenix from Sept. 27 to 30. Renovation and repositioning of
AmeriSuites hotels is scheduled to begin in the fourth quarter,
with completion expect in late 2006.
Like most
extended-stay properties, AmeriSuites hotels feature full kitchens
and are designed and priced for business and leisure travelers who
need accommodations for two weeks or more.
Hyatt said adding
AmeriSuites to its portfolio would allow it to create a new Hyatt
brand that is distinguishable from its existing portfolio of 214
upper-upscale and luxury hotels in 43 countries.
Hyatts announcement comes
at a time when there is considerable activity in the extended-stay
market.
Choice Hotels this
year introduced a brand prototype designed for the economy end of
the extended-stay market. The yet-unnamed brand is still in the
developmental stage, but if Choice gives it a green light, it would
operate as a lower-priced sibling of Choices existing extended-stay
brand, MainStay Suites.
Several hotel
companies have extended-stay brands, such as InterContinentals
Staybridge Suites, Accors Studio 6, U.S. Franchise Systems Hawthorn
Suites, Suburban Franchise Systems Suburban Extended Stay Hotels,
Extended Stay America and Marriotts Residence Inn, which pioneered
the concept. In all, there are over 20 extended-stay hotel
brands.
Extended-stay
hotels are becoming increasingly attractive to franchisees, said
Bill Duncan, vice president of marketing and sales for Homewood
Suites, Hiltons extended-stay brand. About 50% of our business is
five or more nights, so you are not going through the customer
churn, Duncan said. Extended-stay customers tend to become
self-sufficient over time because they get used to using the
property. It becomes their second home. They become very
independent when they use it and dont require much
service.
That reduces
operating costs.
We keep our
staffing levels very efficient, added Monica Gaston, Homewoods
director of brand marketing. We dont have big, expensive
restaurants or things that usually require a lot of
staff.
Homewood has opened
17 properties during the first six months of 2005, compared with
only seven during the same time last year. It has another 95 in
development.
To contact
reporter Michael Milligan, send e-mail to [email protected].