DEVELOPMENT |
||||
|
U . S . & Canada , Marriott International .
At 124 rooms and 54,000 square feet , the StudioRes prototype is expected to be Marriott ’ s most affordable costper-key product to develop and build . Rooms include a kitchen and queen beds . Public spaces offer amenities such as daily coffee service , a fitness center , laundry room , vending area , communal table and covered patio .
These are hotels that must be done at scale — not one or two and through . As Laport pointed out , whereas a hotel like a StudioRes , in a secondary market , will generate $ 2 million to $ 3 million of top-line revenue
THERE MUST BE SOMETHING TO THIS
– MARK LAPORT , PRESIDENT
AND CEO , CONCORD
HOSPITALITY , ON A NEW BREED
OF EXTENDED-STAY BRANDS
PLUMBING THE LOWER TIERS OF
THE SEGMENT
|
per year , a downtown AC Hotel ( Concord has 14 of them ) will do six times that : Concord ’ s AC Hotel in Washington , D . C ., a city still not even fully recovered , did $ 18 million in top-line revenue last year .
Laport said that a StudioRes would command a price premium of around $ 10 to $ 15 above a WoodSpring .
MARGINALLY BETTER Revenues might not be as high in a mid-tier extended-stay hotel , but the profit margins are — running as high as 60 %. A percentage like that makes underwriting these types of hotels much easier — they just pencil out . As Laport pointed out , “ We can still afford this run up in interest rates we face .” Where with other , higher-rated hotels , “ You can ’ t underwrite them successfully at an 8 % or 9 % mortgage rate ,” he said .
StudioRes is not the only
|
StudioRes guestrooms include fully equipped kitchens .
extended-stay brand Concord is bedding down with . In the hotel industry , cheating on a brand is not shameful . Last October , Concord , with its partner Whitman Peterson , and Extended Stay America signed an agreement to develop 15 new Extended Stay America Premier Suites
|
hotels in markets throughout the Western United States , including Denver , Phoenix , Las Vegas and Salt Lake City . Laport said they have now broken ground on the first few .
Like WoodSpring Suites , ESA has institutional ownership : In 2021 , Blackstone and Starwood Capital acquired
The groundbreaking of the first StudioRes property , being developed by Concord Hospitality with partner Whitman Peterson , in Fort Myers , Fla . The ceremony included Marriott International President and CEO Tony Capuano ( fifth in from right ) and Concord ’ s Mark Laport , to Capuano ’ s left .
|
|
44 hotelsmag . com Mar / Apr 2024 |