Midprice, Economy Brands Ramp Up Service, Amenities

Midprice and economy hotel chains, once thought of as offering fairly bare-bones amenities, continue to upgrade their brand standards, as they try to hold business travelers who booked them during the recent recession. Last month, Red Roof Inn announced extensive new services and amenities that included improved bedding and coffee service, and Microtel Inn & Suites introduced complimentary high-speed Internet access in every room and waived telephone charges. Hilton Garden Inn, a midprice brand, last month launched a menu of new standards that included upgraded beds and flat panel televisions.

Marketing executives at the three chains said the upgrades were in response to two trends that have transformed their segments of the lodging industry. Business travelers in particular have increasingly higher expectations of the features a hotel needs to warrant their business. Secondly, these price tiers have become increasingly crowded with new entrants and extensions of existing brands. Consequently, the added competition has forced brands to introduce services and amenities they feel will help to distinguish them from the pack.

"We continually strive to stay ahead of our competitors and offer guests everything they need," said Hilton Garden Inn senior vice president Adrian Kurre. "In fact, this often entails anticipating guest needs before they even arise."

When Marriott International in January rolled out extensive new bed linen, it didn't restrict the new sheets, duvets and mattress covers to its full-service brands. It upgraded these items at its midprice Courtyard, SpringHill Suites and Fairfield Inn brands as well, though with thread counts and cushioning not as plush as the upgrades at its J.W. Marriott, Renaissance and core Marriott chains.

Buyers who include these midprice and economy chains in their hotel programs welcome service upgrades, as long as they don't serve as justification for future rate increases.

Like Marriott, Red Roof Inn has concentrated on bed linen, installing thicker pillow-top mattress pads, longer sheets, fleece blankets and hypoallergenic pillows. "While business travelers typically prefer the comfort of their own bed, a majority of customers found our upgraded bed to be more comfortable than those found in other economy hotels," said Joe Wheeling, COO of Red Roof, which is part of Accor Hotels.

Hilton Garden Inn is replacing the actual bed. "The upgraded model features a built-in air system that allows the mattress to adjust to a person's size and shape, in the process providing a more restful night's sleep," Kurre said.

The 26-inch high-definition televisions display images in a horizontal format that's closer to the experience of watching movies than traditional TV. "We've tried to make commercial hotel TV more compatible with the content being offered by video-on-demand providers, which is what travelers increasingly want to watch," Kurre said. The chain also is installing clock radios that are able to play guests' MP3 or portable CD players.

At Marriott's Courtyard and other midprice brands, the new bedding package includes triple sheeting, which is not commonly found in hotels at this price point. According to Chad Waetzig, senior vice president for select service lodging, the top and bottom sheets are 200-thread count, comforters replace traditional bedspreads and extra pillows are being added.

"The look is much closer to what people have in their homes," Waetzig said. In addition, all linen is being laundered daily, which is another departure from typical midprice hotel operations.

Red Roof is in the final test phase of adding machines in its lobbies that provide a selection of fresh ground coffee. The availability of premium coffee is a departure in the economy category. "We recognize that business travelers are asking for quality products," Wheeling said. "Adding a premium service not typically found in our segment provides another point of differentiation for us."

Midprice chains were the first to pioneer complimentary high-speed Internet access in guest rooms, whether wired or wireless. Microtel's move to make wireless available in every guest room is a first for the economy sector. Travelers also get free local and long distance calls to anywhere in the continental United States.

"We're trying to raise the bar on the scope of amenities that hotels at our price point offer," said Mike Leven, president and CEO of U.S. Franchise Systems, Microtel's parent.