| Extended Stay Hotels |
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Excerpt: Extended Stay Lodging: Check Them Out, Even For a Night Extended-stay is the way a growing number of value-minded vacationers are keeping travel costs contained. The average ES nightly rate was $85.60 in that period, compared with the lodging-industry average of $107.64. These lower rates typically buy suite-style accommodations with kitchens, complimentary breakfasts and Wi-Fi; lots of brands have happy hours, barbecue nights and other free evening eats. Despite their classification, most long-stay brands do accept overnight visitors. ------------------------------------------------------------- Excerpt: Extended Stay Looks to Outperform Industry The extended-stay segment is not immune to the challenges the hotel industry is facing during the current recession, but it has weathered the storm better than most. Extended-stay hotels historically have focused on attracting hotel guests for longer periods of time than traditional hotels and often quote weekly and monthly, along with nightly rates… Nationwide, the hotel industry registered a 2.6 percent year-to-date room-supply growth rate through November 2008 versus the extended-stay growth rate of 9.2 percent. Demand for extended-stay hotels also has outpaced the total industry average. While the industry at large has experienced a decline in demand of 1.5 percent year-to-date through November, the extended-stay segment grew room demand by 3.5 percent. Source: http://hotelnewsnow.com/articles.aspx?ArticleId=455 ------------------------------------------------------------- Excerpt: Extended Stay Continues to Outperform Other Hotel Segments Despite a slight downturn in the fourth quarter, extended-stay demand increased by 1.2% last year. And while occupancy softened (down 3.7 points over 2007 to 70%), the sector still led the overall hotel industry by nearly 10 occupancy points. The segment’s Achilles heel in ’08 was supply growth: up 6.7%, the fastest rate of growth in seven years, according to the report. “What’s amazing is the performance of the upscale segment of the extended-stay market,” says Mark Skinner, a Highland partner and author of the report. “Last year, upscale supply grew by 9.5%, the most for any segment, yet demand still rose by nearly 6%. Upscale has been the extended-stay growth engine for the last eight to 10 years.” The economy and mid-price segments of extended stay both posted decreases in demand, which Skinner attributes to declines in the construction industry, a key target market for both segments. He adds that while extended stay typically lags the start of a recession, the mid-priced and economy segments led the downturn this time, again a function of the steep slowdown in business from construction crews. Source: http://nreionline.com/property/hotel/extended_stay_outperforms_hotel_segments_0303/ ------------------------------------------------------------- Excerpt: Crashing at Extended Stay Hotels The concept has proved to be highly popular -- and highly profitable. That's because extended-stay hotels appeal primarily to business travelers, which means they're less affected by the economic downturns that make leisure travel a luxury. And that's why many hotel chains are investing heavily in the category -- and in some cases, redefining it as well. …Plus, there are significant newcomers. In 2006, Korman Communities Inc. unveiled AKA, a chain that aims to bring urban sophistication to the extended-stay concept; its seven locations are spread throughout New York, Philadelphia and metro Washington. And earlier this summer, Starwood Hotels & Resorts Worldwide Inc. opened its first Element, touted as a "green" extended-stay brand, in Lexington, Mass. Source: http://online.wsj.com/article/SB121867563720639119.html?mod=googlenews_wsj |
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