Residence Inn Scores In Extended Stay Category
<B> Residence Inn Scores In Extended Stay Category</B>
Despite new entries into the market, the traditional extended stay chains, with the exception of Extended Stay America, have continued to top the charts and keep the barriers up on their newer competitors.
As these hotel companies retain their positions, analysts believe customers prefer higher priced extended stay facilities, given the ranking order.
Winning first place in the overall extended stay segment and taking seven individual categories, Residence Inn swapped positions with last year's winner, Homewood Suites.
Third-place winner Summerfield Suites attributed the fact that it did not lose ground in this year's survey to the fact that it targeted the professional training community for its product locations and programs, according to president Tony Isaac.
"Our niche is really training, and we've tried to locate in high- profile corporate markets," Isaac said. Thirty-seven Summerfield hotels are open in major metropolitan markets.
Unlike many extended stay companies, Summerfield focuses on meeting space, with each property offering one meeting room that can accommodate 50 to 60 attendees and another that holds about 30.
As a further cost-saving technique and possible additional meeting space, Summerfield properties include two-bedroom suites. Each guest in these rooms receives his or her own portfolio and bill, so each can file a separate expense report.
Isaac believes the company will further improve its relationships with travel and meeting buyers with the help of Wyndham International, which purchased the chain last year.
"My expectation is that we'll gain some of the benefits of the wider presence in 1999 and 2000," he said. "We didn't really have relationships with the consortia out there before. But Wyndham has established relationships and we'll be able to piggy- back on them when requests are made for preferred and corporate rates. We'll get a little bit wider distribution with the business traveler community."
The youngest of the brands ranked in this survey, Extended Stay America moved up two notches, to fourth place. Rapid development is helping bring the Fort Lauderdale, Fla.-based chain the recognition of travel buyers.
While some hotel companies are reducing their development projects, ESA continues to push forward. It will build 50 to 70 properties this year, on top of the 120 it added in 1998.
"A lot of people see a slowdown as being positive because they think its part of overbuilding," said ESA marketing vice president Mike Wilson. "We will actually gain market share during this next period, and reaccelerate our development after the capital markets improve. The demand is far from being met."
For corporate travel buyers, the company offers a direct billing program, but it does not offer preferred corporate rates. Firms can negotiate to maintain that rate throughout the year rather than allow it to fluctuate with the season and industry climate, said Jay Witzel, ESA's president and COO. This deal requires a minimum of 5,000 room-nights on a chainwide basis.
Like ESA, Hawthorn Suites moved two positions to fifth place in the segment and took first place in the corporate rate program category. The firm launched a national sales program fourth quarter last year. Ten to 12 national sales representatives are assigned to develop relationships with key accounts. They do not negotiate the rates for the individual hotels, but rather try to understand the needs of the client.