Hilton’s Homewood Suites knocked Marriott’s Residence Inn from the top spot in the upscale extended-stay tier, while InterContinental Hotel Group’s Candlewood Suites continues to reign supreme among midprice extended-stay hotels, according to BTN’s 2015 Hotel Brand Survey. Homewood, which also earned a No. 1 ranking from J.D. Power’s North America Hotel Guest Satisfaction Study this year, dominated in every category in its tier.
“We offer tremendous value based on the rate structure that we offer,” said, vice president of brand performance support Rick Colling. “Obviously, we’re looking for longer stays, and we build savings into that pricing based on the values or amenities.” Those include Wi-Fi, full breakfast daily, complimentary evening socials Monday through Thursday, fully equipped kitchens and a grocery service. By 2017, Homewood will have access to Hilton’s Digital Key program, currently rolling out at select properties.
The brand also is upgrading its portfolio through its Take Flight program, which launched in 2013 to provide properties with modern social spaces like outdoor kitchens and lounge areas with fire pits. “We really invested in making sure that we’ve driven a product that’s conducive to sharing and community and that real residential feel,” Colling said.
Colling said the pipeline for the brand has never been more robust. In addition to its existing 370 properties, 125 more are in development. A significant portion of its current and planned properties sit in urban markets.
Indeed, the entire upscale extended-stay tier is seeing a development boom; U.S. supply rose 8.3 percent year over year to 155,430 rooms during the first half of 2015, according to The Highland Group’s 2015 U.S. Extended Stay midyear report.
During that same period, room nights sold increased 7.9 percent year over year. The segment’s second-quarter occupancy reached its highest quarterly level in 10 years.
Residence Inn, which regularly moves between the No. 1 and No. 2 spots in BTN’s 2015 survey, also has turned its attention to enhancing the extended-stay guest experience. “Residence Inn has done a great job with launching its lobby decor and new functionality, and it’s really getting great results from our consumers,” said Janis Milham, senior vice president of modern essentials and extended-stay brands for Marriott.
In June, the brand launched Residence Inn Mix, which occurs three nights a week and rotates local food and beverages, food trucks and onsite grilling.
Since the launch, Milham said, guest scores collected internally have increased 3 percent among Generation X and Y travelers and 2 percent among Baby Boomers. “It’s just a really cool new approach to providing evening engagement with our customers,” she said.
IHG’s Staybridge Suites came in at No. 3. This month, the brand unveiled its Urban Guest Room Design for new city-center developments. Each suite offers modern updates like a mobile desk, built-in shelving and storage space to allow for more room to work and separate dining and work areas, “something that is very important to Staybridge Suites guests who often stay for weeks or months at a time,” said Heather Balsley, IHG senior vice president of Americas brand management.
Candlewood Suites, meanwhile, earned top marks in the midprice tier for quality of sales staff, consistency of offering, corporate rate programs, quality of data, helpful and courteous service, quality of in-room personal amenities and overall price/value relationship. It also earned a No. 1 ranking in J.D. Power’s satisfaction study.
Balsley attributes the positive performance to the brand’s well-trained, considerate and personable team members, as well as the consistently positive experience each property offers.
The brand continues to garner satisfaction for its Lending Locker program, which provides common household or wellness items during guests’ stays, and for its Local Finds section in the 24-hour Candlewood Cupboard, where guests can purchase local refreshments, snacks and supplies.
At No. 2 among midprice extended-stay hotels, TownePlace Suites received the highest score for physical appearance, quality of public-area business amenities and quality and variety of in-room business and personal amenities.
Marriott has made efforts to improve the design around TownePlace for the next-generation traveler. New and renovated properties, which make up about two-thirds of the brand’s portfolio, utilize The Container Store’s Elfa closet system with flexible arrangements of hanging space, shelving and cubbies. “We’ve done new decor and design but in a really different sort of a way by partnering with a brand we really think fits well with TownePlace and an extended-stay customer,” Milham said. The program also offers Container Store discounts to guests.
The midscale extended-stay tier saw healthy growth during the first half of 2015, as U.S. room supply rose 5.2 percent year over year, according to The Highland Group. Demand increased 4.5 percent year over year during the first two quarters. Midyear occupancy fell 0.3 percent to 73.4 percent, but the average rate rose 7.9 percent to $76.20.
This report originally appeared in the Oct. 12, 2015 edition of Business Travel News.