Midprice, Econ. Chains Have Designs On Broader Market

<B>Midprice, Econ. Chains Have Designs On Broader Market</B>

By Bruce Serlen

Best Western International earlier this month introduced a prototype for new builds, which will offer a higher level of business accommodation than in the past. The announcement added to a growing chorus of midprice and economy U.S. hotel chains heralding fresh blueprints that build in more upscale amenities.

Similar moves by Days Inn, Econo Lodge and La Quinta Inns suggest that the lower end of business travel lodging is preparing to accommodate travelers as economic conditions may prompt them to trade down.

With prototypes featuring cleaner, more contemporary exteriors, more appealing guest room layouts and new business amenities, these brands seemed determined to grow their market share of corporate travelers, in part, by luring them away from the full-service brands where they had been accustomed to staying.

For travel managers, location and rate are certainly two main drivers in the decision to include a chain in a hotel program. But at the same time, there's been a bias for full-service hotels that have name recognition. Here, buyers reasoned, travelers would find the comfort and level of amenities they expected when they traveled on behalf of their company. But with a new generation of midprice and economy hotel prototypes becoming available, that bias may be changing. And if the national economy, in fact, does soften in a significant way over the coming months, the more cost-effective rate structure of these brands will prove an additional lure.

The upgrades start with what the chains call curb appeal. "You want travelers to have a positive first impression as they pull up to the property," said Tim Shuy, vice president for economy brands for Choice Hotels International, which includes the Econo Lodge chain. "The new prototype calls for a larger, more open lobby with windows offering an 180 degree view. While breakfast isn't a brand requirement, there'll be an indoor area suitable for breakfast that opens into an outdoor seating area." While cleanliness is more or less a non-issue at full-service hotels, it can still be a concern at lower price point brands. "It's one of the reasons a bright, well-lit exterior is so important," Shuy said.

Interior corridors have become more of an industry standard. "There's a security advantage, plus they're more efficient energy-wise," said Ron Meeks, project manager/architect for the new prototype at Days Inn and its variant Days Inn & Suites, which are part of the Cendant portfolio. "This way, one corridor serves two sets of rooms and runs down the spine of the building."

Yet, the biggest focus of the new prototypes was the guest room itself. In a nutshell, it's larger and becoming more residential. "In both our La Quinta Inns and Inn & Suites prototypes, we provided upgraded king-bedded rooms designed for the business traveler," said Alan Tallis, executive vice president. "In laying out the rooms, we asked ourselves, 'If we're home and we're working, what do we look for?' " The solution: larger desks designed for laptops, ergonomic conference-style chairs and two-line telephones. The Inn & Suites design also allows for a separate business center, which isn't necessarily standard for hotels at this price point.

The needs of the business traveler aside, new hotel prototypes are prepared for the benefit of potential owners who will be developing them. "Lower construction costs certainly were a priority because if costs are lower, owners are able to translate these savings into lower rates and are likely to be more successful," Shuy said.

Given high real estate costs in many parts of the country, the more land-efficient a prototype is, the better. "Our prototype for a 60-room property, for example, can be built on just over an acre of land," Shuy said. Consequently, desirable real estate parcels that may have been ruled out for being too small now may be viable.

But the number of rooms that a parcel can accommodate isn't the only consideration. "Parking is a factor too, given that most of these are office park or highway locations where travelers typically arrive by car," Meeks said.

At Holiday Inn Express, which is part of Bass Hotels & Resorts, the first property built according to a prototype introduced in 1998 didn't open until April 2000. "However, 21 are now open and 30 more are under construction," said Jennifer Ziegler, brand vice president. "Because the prototype is modular in design, it's adjustable and can fit any number of spaces," Ziegler said. "Similarly, the prototype is non-specific as to the number of rooms the property can contain." In fact, the prototype can be used for properties ranging in size from 60 to 150 rooms.

Unlike those from the corporate-owned chains, Best Western's prototype is a departure for the company, as it attempts to standardize all future builds. The prototype is intended for developers who would build the hotel and then join the brand. A membership association made up of independent properties, Best Western had never worked with developers in this way before.

"Actually, there are five different designs to choose from and the prototypes are available on a computer-based program," said Si Sloman, vice president of operations. "Developers can either use them as a jumping off point or they can build them in their entirety. Either way, developers will want to adapt the interiors and exteriors, depending on the geography and local culture as well as specifics like lot size."

The most generic of the prototypes is called "Main Street," and is intended to be the most cost-efficient to build. "It's meant to apply to all geographic regions," Sloman said, "and convey a sense of familiarity and comfort without being overly dressed." Other prototypes are meant to evoke a western lodge and an East Coast row house. Each model can be paired with a variety of interior floor plans, including Best Western's special business room product, which is known as "Business Plus."

"Up to now, short of the signage, each of the 4,100 Best Westerns worldwide had its own individual look," Sloman said. "While we're hardly encouraging a cookie-cutter approach as some brands do, we thought a degree of consistency would be beneficial.