TALLAHASSEE, Fla.
-- Staybridge Suites, an extended-stay brand operated by
InterContinental Hotels Group, opened its 100th location here
recently, with executives claiming that an upscale, extended-stay
brand has never reached the 100-hotel mark as quickly.
Marriott's
Residence Inn, which has long dominated the upscale, extended-stay
segment, now has about 500 properties. Hilton's Homewood Suites has
180. Staybridge executives say it is on course to have 200 within
three years.
Robert Radomski,
Staybridge's vice president of brand management, said that the
segment has a bright future.
"The demand for
extended-stay continues to grow. Companies have downsized, but that
creates a large number of free agents, especially in technology
fields. These are skilled professionals who go on to create their
own companies and are heavy users of extended-stay.
"There are also a
large number of retail complexes being built round the country," he
said. "That means waves of business teams coming in to do training,
decor, technology, etc. Our sales teams find themselves knocking on
the doors of a lot of construction trailers."
Extended-stay
hotels are appealing to operators and owners because staffing is
low, occupancies are high and demand is growing.
In a recent
study, PricewaterhouseCoopers reported that the segment enjoyed an
average occupancy of about 75% in 2006 despite an increase in
supply. The company's 2007 outlook predicts even more supply growth
in upscale extended-stay, but expects occupancy to remain steady in
the mid-70s.
Radomski said
that his brand was differentiating itself from competitors in
several ways. For one he said, the brand is "totally focused on
extended stays."
As a result of
that focus, said Radomski, 55% to 60% of its stays are five nights
or longer.
James Anhut,
senior vice president of development for InterContinental Hotels
Group, said that while chains in the extended-stay category tended
to focus heavily on local sales, nearly 50% of Staybridge's
revenues from bookings were generated through IHG distribution
channels, including the GDSs, the brand Web site and call
centers.
"We have a large
contingent of salespeople who are focused on agents," Anhut added.
"It makes sense to talk to them because it's an efficient way for
us to sell."
Literally
knocking on doors is a big part of Staybridge's marketing strategy
because the brand emphasizes local sales and consumer advertising
is minimal, Radomski said. "We just ran our first ad in USA Today,"
he said.
While there is
limited focus on leisure markets, Radomski said, "We continue to
get good weekend business for wedding receptions, family reunions
and other social events. We offer a great family value."
Radomski said
Staybridge hotels have features that differentiate them from those
of other extended-stay brands.
"Our design is
different. Our Great Room (a large room that is located off the
entrance area) is designed to encourage guests to spend a lot of
time there -- eating, working, playing games and chatting. There is
always activity in that space."
Staybridge, said
Radomski, was also first to offer studio accommodations: large
rooms that offer all the amenities and services of the one and
two-bedroom suites available in every hotel.
Radomski said
that some competitors have rooms that "might be bigger, but we
think we have a much more efficient deployment of square footage.
Also, just about all of our pipeline is new construction. We will
do very few conversions."
While Staybridge
already has a high-rise building in New Orleans, it will go even
higher in Chicago, where ground was just broken on the largest
Staybridge in the system: an 18-story building that is scheduled to
open late in 2008.
While the brand
has not changed much since its inception in 1998, Radomski said
there has been some tweaking.
The 104-room
Tallahassee property is the first in the chain to have a
purpose-built "Just Like Home Theater" adjacent to the Great Room,
with a 56-inch plasma, high-definition TV; 20 large, leather
reclining chairs; and a popcorn machine.
The theater
features an evening event schedule (usually sports) and is
available for small meetings using the system's PC plug-in feature
during daytime hours.
The facility,
said Radomski, "is one more way to offer people what they
frequently have at home."
The Tallahassee
property is 100% wireless, and wired Internet access is also
available in suites. Both are complimentary. The hotel offers
computers in every room (the hotel's owner is a computer company).
In-room computers, according to Anhut, are not likely to become a
brand standard.
Staybridge Suites
in all locations do offer complimentary buffet breakfasts, 24-hour
fitness centers, fully equipped kitchens and complimentary laundry
facilities. Many offer swimming pools and "sport courts," where
basketball, volleyball or racquet sports can be played.
To contact reporter Harvey Chipkin, send e-mail to [email protected].