Ext. Stay To See Combo Trips

With business travelers reticent to fly in the aftermath of last month's airplane hijackings, one likely short-term outcome is that travelers will combine trips that are critical, staying longer in a destination to accomplish all the business they would have seen to on multiple trips. For hotels, this potentially means fewer stays in number, but stays that do occur will be of longer duration.

The industry segment that could benefit most from this unexpected development is extended stay. Ironically, both upscale extended stay brands—such as Homewood Suites by Hilton and Residence Inn by Marriott—and their midprice counterparts—TownePlace Suites by Marriott and Candlewood Suites—already had been on a strong growth curve in the past few years as companies relocated more employees and sent consultants and employees on long-term assignments.

While operators of extended stay brands couldn't have anticipated any spike in demand as a result of the September incidents, nonetheless they have been fine tuning their products and aggressively expanding their distribution in recent months. In August, for example, Homewood Suites introduced a new studio suite configuration in Sioux Falls, S.D., that brand senior vice president Jim Holthouser cited for its "openness and flexibility."

Residence Inn, meanwhile, opened four properties in July, including two in Massachusetts. TownePlace Suites converted three former Stonebrook Suites properties in Washington and Oregon in August, "our first units in the Pacific Northwest," according to Tim Sheldon, Marriott senior vice president for extended stay lodging. And Candlewood Suites opened its 99th property—and sixth in Virginia—in Hopewell in September.