It appears that virtually each main lodge teams plans to launch a brand new prolonged keep model shortly…
Marriott plans “fundamental” new prolonged keep lodge model
Throughout Marriott’s Q1 earnings name earlier right this moment, the corporate hinted at a brand new prolonged keep lodge model that might be launched shortly.
Particularly, in a number of weeks Marriott will announce a “easy, trendy, streamlined, new-build prolonged keep product.” This new lodge model may have “very fundamental companies and facilities” for these on the lookout for longer stays “at a midscale worth level.” These are all the small print we’ve got as of now.
Marriott already has 30 lodge manufacturers, and that can shortly be 31 manufacturers, as soon as Mexico’s Metropolis Specific Accommodations are built-in into the portfolio. So this new prolonged keep model might be Marriott’s thirty second model.
If this idea sounds acquainted, it means you’ve been paying consideration:
For context, Marriott already has 4 prolonged keep lodge manufacturers, together with:
- Residence Inn by Marriott, the place all rooms are suites and have kitchens, with complimentary breakfast and a night completely happy hour
- TownePlace Suites by Marriott, the place rooms vary from studios to 2 bed room suites, and have kitchens; Marriott describes this model as being for “the Upbeat Life like traveler” (which I discover to be a reasonably humorous description)
- Factor by Westin, the place rooms vary from studios to at least one bedrooms suites and have kitchens, with complimentary breakfast and a night completely happy hour; that is usually increased finish than Residence Inn and TownePlace Suites
- Marriott Govt Residences, which is the closest factor in Marriott’s lodge portfolio to an apartment-style lodging
My guess is that the brand new model would be the lowest finish of those manufacturers. Rooms will most likely be a good measurement and have a kitchenette, however I wouldn’t anticipate a considerable complimentary breakfast, or many frills past that.
Why lodge teams are specializing in prolonged keep manufacturers
As I all the time say, lodge model ideas aren’t created for shoppers, however slightly for lodge builders. Shoppers are simply the product that’s being offered to builders. So, why the sudden give attention to prolonged keep manufacturers?
Effectively, for one, most main world lodge teams aren’t very unique or inventive. They copy each other on nearly every part, and this can be a clear instance of that. If one firm launches a brand new prolonged keep model, all of them really feel they should launch one.
However as we emerge from the pandemic, there’s a much bigger cause we’re seeing a give attention to decrease finish prolonged keep properties:
- These prolonged keep manufacturers are among the many least labor intensive lodge ideas on the market, so that they don’t have the identical labor points we’ve seen at so many different accommodations in recent times
- These prolonged keep manufacturers are a lot simpler to develop; they require smaller investments, it’s simpler to search out vacant actual property for them (usually simply off a freeway), and they are often constructed fairly shortly; this can be a bit simpler than attempting to open a brand new Ritz-Carlton within the Maldives by way of value, danger, and lead time
- With financial uncertainty, it’s anybody’s guess how high-end leisure demand will evolve over the approaching years; it’s as sturdy because it has ever been proper now, however that may not final
- “Conventional” enterprise journey hasn’t recovered to pre-pandemic ranges, although prolonged keep manufacturers are sometimes focusing on totally different sorts of enterprise vacationers, who’re much less impacted by these sorts of fluctuations
Backside line
Within the coming weeks, Marriott will reveal the small print of its latest prolonged keep model, following within the footsteps of Hyatt and Hilton. Whereas Marriott already has a number of prolonged keep manufacturers, anticipate the brand new one to be a bit decrease finish. This appears to be the place lodge teams see probably the most development potential for the time being.
What do you make of Marriott’s plans for a brand new prolonged keep model?
