NYLO may stand for New York Lofts, but the hotel brand's growth strategy is focused on cities large and small.
NYLO, the Dallas-based company founded by former Starwood executive Michael Mueller, opened its flagship New York property last October, the brand's fifth hotel. (Read more about NYLO New York City in related article, "Hip hostelry on the Upper West Side.")
Its first four properties were far from the hustle and bustle of the nation's largest cities. NYLO debuted in Plano, Texas, in 2007. The company grew quickly from there, at the rate of almost one hotel per year, adding two more in Texas, in Irving and Dallas, and one in Warwick, R.I.
"Travelers to smaller suburban markets or larger urban markets are seeking hotels that are unique, fun and inspirational," Mueller said. "There are many smaller markets with dozens of cookie-cutter, staid hotels. There is always room for something fresh, new and different."
Mueller said that NYLO's strategy was to enter large urban markets as well as airport markets, university towns and cities, and "any market with a good mix of commercial business."
Plano, for example, is a "high-growth market" with a large commercial business base and dozens of Fortune 500 companies with regional, national or international headquarters, he said. In addition, it's in close proximity to Dallas-Fort Worth Airport.
"Because NYLO is a reasonably priced, accessible upscale hotel, it allows us to go to many different types of markets and not limit ourselves to just the larger cities," Mueller said.
NYLO's next property will open in Nyack, N.Y., a village about 20 miles north of New York City on the banks of the Hudson River.
Mueller said NYLO is currently working on more hotel projects all over the country.
"We don't limit ourselves to any geographic area," he said. "We are exploring and will explore opportunities in any market."
Mueller spent 14 years with Starwood Capital Group and Starwood Hotels & Resorts, during which time he helped create and expand the W Hotels brand, before becoming NYLO's original founding partner and securing more than $100 million to develop the brand and its first properties.
NYLO plans to add one to two hotels per year over the next few years, mainly via conversions of existing properties.
"In three to four years we hope to grow at a faster pace, but that will depend on the overall economy and access to capital for hotel developers to build hotels," Mueller said. "Today, capital for new hotel construction is still very limited."
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