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Old 08-06-2015, 09:17 AM
 
Location: Kirkwood
23,726 posts, read 24,863,148 times
Reputation: 5703

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Noble plans dual-branded hotel for Midtown - Atlanta Business Chronicle
It will replace a surface parking lot at 48 13th St NE.
https://www.google.com/maps/place/48...2891b19c635af7
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Old 08-06-2015, 10:03 AM
 
Location: Ono Island, Orange Beach, AL
10,744 posts, read 13,386,955 times
Reputation: 7183
The dual-brand hotel seems like an odd concept to me. What is the business case behind it? I'm sure that there must be one, but it isn't obvious to me.
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Old 08-06-2015, 10:04 AM
 
Location: Kirkwood
23,726 posts, read 24,863,148 times
Reputation: 5703
Quote:
Originally Posted by AnsleyPark View Post
The dual-brand hotel seems like an odd concept to me. What is the business case behind it? I'm sure that there must be one, but it isn't obvious to me.
Read the article and they explain some of it.
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Old 08-06-2015, 10:31 AM
 
1,709 posts, read 3,425,414 times
Reputation: 1343
Quote:
Originally Posted by AnsleyPark View Post
The dual-brand hotel seems like an odd concept to me. What is the business case behind it? I'm sure that there must be one, but it isn't obvious to me.
They go after different clients.

It is ususally a limited/select service hotel (no or small f&b) paired with an extended stay concept.

For limited service, think Hampton, Hilton Garden Inn, SpringHill Suites, Courtyard, Holiday Inn Express, etc.

For extended stay, think all concepts with a fridge and oven in the room.

One targets short term stays while one targets longer stays.

While that is what the theory is on paper, the extended stay often times attract just as many shorter stays... but developers build them anyway because there are no more brands in the market to choose from.

So Hilton, you're saying I can't build another Hampton 2 miles down the road from the existing, but I can build your new Home2Suites brand. Ok.


The avg nights per stay on an extended stay vs a limited/select service in many markets is roughly the same. ..when teh avg nights on an extended stay in other markets greatly outpaces limited/select service brands.

Extended stays are great as they typically operate at higher margins due to the extended stay nature of their concept.
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Old 08-06-2015, 11:37 AM
 
Location: Ono Island, Orange Beach, AL
10,744 posts, read 13,386,955 times
Reputation: 7183
Quote:
Originally Posted by cqholt View Post
Read the article and they explain some of it.
Thanks. I should have done that first!
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Old 08-06-2015, 11:38 AM
 
Location: Ono Island, Orange Beach, AL
10,744 posts, read 13,386,955 times
Reputation: 7183
Quote:
Originally Posted by ATL Golfer View Post
They go after different clients.

It is ususally a limited/select service hotel (no or small f&b) paired with an extended stay concept.

For limited service, think Hampton, Hilton Garden Inn, SpringHill Suites, Courtyard, Holiday Inn Express, etc.

For extended stay, think all concepts with a fridge and oven in the room.

One targets short term stays while one targets longer stays.

While that is what the theory is on paper, the extended stay often times attract just as many shorter stays... but developers build them anyway because there are no more brands in the market to choose from.

So Hilton, you're saying I can't build another Hampton 2 miles down the road from the existing, but I can build your new Home2Suites brand. Ok.


The avg nights per stay on an extended stay vs a limited/select service in many markets is roughly the same. ..when teh avg nights on an extended stay in other markets greatly outpaces limited/select service brands.

Extended stays are great as they typically operate at higher margins due to the extended stay nature of their concept.
Thanks! That's helpful!
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