In a move that signals higher stakes within the midscale lodging sector, Choice Hotels International has launched an advertising campaign for its Sleep Inn brand that appears to take a jab at newer midscale competitors Tru by Hilton and InterContinental Hotels Group's (IHG) Avid brand.
The trade-media marketing campaign, which targets prospective developers and includes a picture of a man in garish, outdated workout clothes accompanied by the tag line, "Trends don't make good investments," looks to capitalize on a prototype Sleep Inn introduced last year, which includes nature-inspired design, black-and-white photography, a more angular roof line and updated offerings on its free breakfast menu.
With about 400 hotels in operation, Sleep Inn is looking to broaden its pipeline beyond the approximately 120 properties that are under development.
The campaign also suggests that Sleep Inn offers a better investment opportunity than Tru or Avid because of its parent company's experience in the sector.
"It seems like everybody is launching a midscale brand," said Anne Smith, Choice Hotels' vice president of brand management and design. "We've always loved midscale, and we want to remind owners and developers what a great investment we offer them."
Alexandra Jaritz, global head of Tru by Hilton and a 13-year veteran of Choice Hotels before joining Hilton in 2014, said her company is rapidly learning those nuances. Having opened its first Tru in Oklahoma City in May, the company had five open as of Sept. 30 and expects to have a dozen operating by the end of the year. Additionally, Hilton's first dual-branded Tru/Home2 Suites property opened in Murfreesboro, Tenn., in September.
While declining to offer specific performance metrics, Jaritz said Tru's approach to highly connectable lobby spaces, color pops and guestroom design has struck a chord with its guests. There are more than 400 properties in Tru's development pipeline.
"Everything is going exactly as we hoped, if not better," Jaritz said. In terms of operating performance, she said, all five hotels "are exceeding expectations."
Whether these two brands are drawing the same demographic remains in question, given the room rates being quoted at comparable properties. Tru appears to be garnering higher rates, as mid-November weekend rates for Tru's Oklahoma City hotel started at $84 a night, compared with the $71 rate quoted for the Sleep Inn a block away. That said, Sleep Inn estimates that development costs for its new prototype, excluding land, average about $53,000 a room, compared with about $90,000 for Tru.
Further stirring up the midscale mix will be IHG, which formally introduced its Avid midscale brand in September and said at the time that the first property under that badge will open in 2019.
"I love the fact that there's so much conversation about midscale," Smith said, "but a lot of companies right now are going to have to learn their way through midscale, whereas we understand its nuances."