Two Dark Horses Have Emerged In the Coming Competition Between Multi-family Apartments and Extended-

By William A. Brewer III Managing Partner, Bickel & Brewer | January 14, 2010

In One Corner: Extended-stay Hotels Are All Grown Up, Attracting the Business Traveler and Becoming Upscale Alternative Accommodations

Modest Beginnings

Extended-stay hotels have come a long way. In the eighties, these alternative economy accommodations catered to families and budget travelers in off-the-beaten-track locales. From the start, Extended-stay hotels became popular by providing travelers with a home-away-from-home experience. Amenities like kitchenettes and laundry facilities at discounted rates allowed travelers to save on food and other expenses during their extended stay. This feature, as well as increased quality and emerging upscale property offerings, have made Extended-stay hotels as popular as ever, even in a challenging economy. In fact, while amenities vary depending on the property, this rapidly growing segment of the lodging industry still shows no sign of slowing down.

Gaining Popularity and Attracting the Business Traveler

In 2007, nearly three-quarters of all hotel guests were away from home on business. Extended-stay hotels are attracting these business travelers, with Extended-stay hotel guests increasing rapidly, especially among mid-price and upscale properties in targeted markets with strong Extended-stay demand. Cities with a significant transient element account for the highest number of Extended-stay hotel rooms with Atlanta leading the U.S. Extended-stay market followed by Houston and Washington, D.C.

This guest segment sees a home-away-from-home experience as a welcome change to the standard business hotel. The increase in popularity has resulted in improvements in quality and amenities. Many budget hotel chains have entered the Extended-stay arena. Choice Hotels International, franchisors for name brands like Comfort Inn and Quality Inn, have opened Extended-stay properties. In addition, the more upscale element hotels, Westin's newly unveiled eco-conscious chain, are ensconced in the suburbs of several busy business hubs where demand for Extended-stay hotels have grown in recent years.

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Brenda Fields
Robert King
Jerry Tarasofsky
Paul Feeney
Max Starkov
Tyler Tatum
Scott Watson
Mike Sawchuk
Michael Schubach
Felicia Hyde
Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.