Extended-stay hotels didn’t just survive the pandemic—they thrived. While other segments struggled with closures and low occupancy, many extended-stay properties reached or exceeded 2019 levels of occupancy, ADR and RevPAR.
According to The Highland Group, extended-stay hotels nearly reached 2019 occupancy levels by April 2021 and were 14 points higher than all other hotels in the third quarter.
All sorts of records for the extended-stay segment were broken in the third quarter of 2021. The economy extended-stay tier recorded its highest occupancy, RevPAR and ADR in the period ever, while the midscale extended-stay tier reached record ADR. And although upscale extended-stay properties did not make records in those metrics, they were close to reaching 2019 levels.
Sonesta has the extended-stay segment covered with three non-competing brands, Sonesta ES Suites (upscale), Sonesta Simply Suites (midscale) and GuestHouse Extended Stay (economy).
“The extended-stay segment clearly continues to be in demand by consumers, as evidenced by the latest performance metrics,” said Brian Quinn, Sonesta’s chief development officer. “Sonesta continues to see strong performance at all three of our extended-stay brands.”
The Sonesta ES Suites brand, which was launched in 2012, offers more than just a place to stay. Its properties give guests a place to relax, a place to be productive and a place that’s just a little more fun. Oversized studio, one- and two-bedroom suites are joined by fully equipped kitchens, while amenities include complimentary grab ‘n go breakfast, free WiFi, a swimming pool and a fitness center. Sonesta ES Suites opened its first city center property in New Orleans, with most of its properties in secondary and tertiary markets, often found near commercial and industrial parks “near where business is done.” The upscale all-suite brand has been primarily conversion-focused at this point.
Sonesta Simply Suites
Sonesta Simply Suites just celebrated it’s first anniversary. Apartment-like amenities include studios and one-bedroom suites with simply equipped kitchens; a dedicated workspace with a desk; complimentary WiFi; free onsite laundry facilities; and a fitness center. Sonesta Simply Suites competes with other midscale, extended-stay hotels and has grown dramatically in its first year to over 60 units, all from conversion opportunities.
GuestHouse Extended Stay was repositioned into a less-traditional extended-stay brand during the pandemic. The brand is ideally suited for conversion since it isn’t all suites and, therefore, can convert more easily from any existing footprint with the addition of a retrofitted kitchenette. It thrives in secondary or tertiary markets near business or revitalization districts, points of interest and mass transit hubs. Its hotels offer Signature Moments, a collection of unique property features including the aforementioned kitchenettes, enhanced continental breakfast, free WiFi, cornhole and board games, guest laundry and more. GuestHouse Extended Stay competes with economy extended-stay hotel brands and has 15 locations presently.
GuestHouse Extended Stay
“We have an owner/operator centric view to optimizing value for the developer and the consumer,” added Quinn. “There is real alignment around the value proposition—to the consumer that translates as more space for a reasonable price; for developers that translates as strong flow-through and better returns.”
Sonesta is now the eighth largest hotel company in the U.S. for number of hotels according to STR census data and offers 15 brands across 100,000 rooms in eight countries. The integration of the two portfolios has resulted in complimentary, non-competing brands—and nowhere is this more efficiently illustrated than in the extended-stay segment.
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document in compliance with applicable law. Franchises are offered in the U.S. through Sonesta RL Hotels Franchising, Inc., and in Canada through Sonesta RL Hotels Canada Franchising, Inc. MN#F-7030. 255 Washington Street, Suite 230, Newton, Massachusetts, 02458.
© 2021 Sonesta RL Hotels Franchising Inc.
ADVERTORIAL
