WILTON, N.H. -- Used to be that Susse Chalet properties were
known as the cheapest properties in New England. They had some
loyal travelers -- mostly the drive-in without a reservation kind
-- but were bare bones operations and didn't work with agents.
During the past few years, however, the limited-service firm
quietly has reinvented itself.
Officials decided to sell off properties with motel-like outside
access, instead building properties with several stories and inside
corridors.
And at the same time it was improving curb appeal, the chain
started working with agents and introduced loyalty programs to make
sure its customers, the majority of whom are business travelers,
stayed happy.
In-room extras were added, too, such as data ports, fax service
and bathroom amenities.
Today, Susse Chalet founder, president and chief executive
officer Fred Roedel said his chain's properties are not cheap but,
rather, offer "the best value and are champions in service."
"We look at image now. We always used to use rate, and when you
market rate that means something to people; that you're probably
minimum, a hard-core-budget kind of operation. In our new
marketing, we're talking about [customer] loyalty."
The chain, in its repositioning and recent $6 million investment
in upgrades, sees itself competing with the likes of Hampton Inns
and Courtyard by Marriott properties.
Most of the 36 Susse Chalet properties are located in New
England, with other locations in New York, Maryland and
Washington.
Two of the properties, in Newport, R.I., and Groton, Conn., are
located on Naval bases, operated under special agreement with the
federal government. Almost every property is near a major highway,
with rates averaging $45 a night.
Roedel is currently expanding the chain and recently began
renovating a property in Hartford, Conn., to be the first of a new
product -- Susse Chalet Suites.
He also plans to develop new properties in several locations,
including Princeton, N.J., and has earmarked $30 million for the
development of five new properties during the next two years.
Roedel, who was a frequent traveler as president of a food
company, jumped into the hotel business when he recognized the need
for low rates on accommodations.
He read about Motel 6 and decided to start his own New
England-based chain in 1968, gearing Susse Chalet toward business
travelers by providing direct-dial telephones in guest rooms.
His formula worked well, with the chain averaging 85-percent
occupancy until the early 1990s, when increased competition and a
downturn in the industry took their toll.
Roedel reacted by making the decision to start selling his older
properties, learning from consumer research that travelers of the
1990s wanted lobbies, elevators and inside corridors, particularly
women travelers, who today make up 35% of Susse Chalet's
clientele.
"We repositioned," Roedel explained.
"We asked what does the customer really want, and we redesigned
[our properties] to be upper-end, limited service, with many of our
properties four-stories, and gearing for a three-star rating."
In addition to making physical changes to the properties, the
Susse Chalet chain enhanced its VIP program, offering travelers a
free night after eight stays as well as air miles, gifts and
express check-in.
The chain recently began offering VIPs a telephone card they can
use to make calls for 20 cents a minute.
All guests receive free continental breakfast, and VIPs have the
option of having the breakfast delivered to their room.
Roedel said some 25,000 customers are members of the chain's VIP
program. The chain attracts its largest number of guests from
Texas, California and Illinois.
As part of its repositioning, Susse Chalet also began working
with agents, who currently supply about 8% of the chain's
bookings.
Susse Chalet guarantees commission payments within seven
days.
The chain's properties are listed in CRS systems, and Susse
Chalet has preferred agreements with several large agencies.
Susse Chalet experienced occupancies in the mid-60s in 1996, and
expects to see occupancies in the 70s in 1997, which is considered
respectable for the New England market.
As it grows, Susse Chalet so far has resisted becoming a
franchise operation. There are a few franchisees, but Roedel said
the parties came to him.
Roedel also has resisted calls from other hotel chain companies
eager to merge with Susse Chalet, which is a privately held
company.
"We get an awful lot of calls from major franchise players,"
Roedel said.