SPECIAL REPORT
at smart shopping to create more value for our owners ,” he said . “ Many of our franchisees have taken steps to expand on our requirements .”
For example , one of Red Roof ’ s dualbranded hotels [ Red Roof Inn paired with HomeTowne Studios ] offers refrigerated goods on one wall and a dry pantry on the other .
In igniting Spark as a 100 % “ costeffective ” conversion model , Hilton also has owners and developers prioritized , according to Schuyler , who anticipates a mix of owners from competitor brands and small independents inking deals .
“ Conversions are a sustainable form of growth , minimizing environmental impact and creating greater economic efficiencies for owners to extend the value of their investment ,” he said . Schuyler noted each hotel will be required to complete a full renovation of all guest-facing areas of the hotel and have available an “ easy-to-install ” room package to create “ a more-consistent room experience across the brand .”
G6 ’ s Burnett said while she understands why brands work to find ways to make guests feel they are getting more for their money , “ our focus is about affordability and making travel accessible to everyone , as well as making sure ownership is accessible
In 2022 , Red Roof unveiled a new-build , dual-brand prototype that combines the Red Roof and HomeTowne Studios brands .
for everyone . Every amenity added raises the cost of the stay for travelers or the cost of the investment for owners , which could impact accessibility .”
Most concurred the fallout from the coronavirus pandemic shifted the travel paradigm for consumers , while also forcing players to take a hard look at their brand offerings .
“ It ’ s given hotels the opportunity to really pressure-test their amenities ,” said Patel . Consider breakfast : “ For decades , economy hotels attempted large breakfast spreads that despite their best efforts , inevitably fell short with guests . Our hotels certainly saw this ,” he said . “ Long believed to be essential ,
OUR GOAL IS TO ENSURE EVERY AMENITY RED ROOF PROVIDES IS PRODUCING REVENUE FOR THE FRANCHISEE , AND WE ARE AGGRESSIVE AT SMART SHOPPING TO CREATE MORE VALUE FOR OUR OWNERS
– MATT HOSTETLER , CHIEF DEVELOPMENT OFFICER , RED ROOF the pandemic allowed us to rethink that approach and significantly scale back , reducing costs for owners .”
The impact ? Wyndham ’ s guest satisfaction scores actually went up .
Patel said owners also are weighing in , seeking opportunities to monetize underutilized space , such as breakfast areas post- 10 a . m . “ More and more hotels are taking to installing marts and vending machines in this space , allowing them to sell food and sundries 24 / 7 ,” said Patel , thereby creating a new revenue stream and higher guest satisfaction .
Overall , the segment ’ s strength and resiliency have each franchisor bullish on increasing its economy-brand presence , largely in the secondary and tertiary markets where each concentrates distribution . At press time , Red Roof expected to open 50 hotels this year ( 60 % year-over-year growth ) and had 18 properties ( 1,252 rooms ) in its development pipeline . With 275 properties in the pipeline , G6 Hospitality anticipated opening more than 100 properties , with Studio 6 / Studio 6 Suites representing nearly 60 % of those . Wyndham did not provide opening / pipeline data .
According to Schuyler , newcomer Spark by Hilton has more than 300 deals in various stages of development , 98 % of these with “ new-to-Hilton ” partners . He anticipates opening the first Spark this year .
10 hotelsmag . com June 2023