Briefing: The expansion of extended stay

A Special Report by Skift and Homewood Suites by Hilton found that there has been a 42.3% year over year growth in the pipeline for extended-stay properties in the US. Homewood Suites has 325 hotels in the US. Another growing extended-stay brand is Staybridge Suites, which has 101 hotels in the pipeline. With increasing awareness and demand for extended-stay accommodation internationally, there is high potential for growth.

Experts discuss extended-stays in a variety of accommodation types:

The report ‘The Changing Business of Extended-Stay Hotels’ found that the average age of extended-stay travellers is mid-40s. Also the 18-34 year old age group slightly favours extended-stay style accommodation for leisure trips.

The survey found that guests in extended-stay accommodation are more likely to be on business than leisure and that business travellers will stay longer.

Unsurprisingly the survey found that free wi-fi and a complimentary hot breakfast were considered the two most important amenities in an extended-stay hotel by both business and leisure travellers.

The survey found that only 45.4% of travelling Americans had stayed in extended-stay accommodation and 8.6% didn’t know what extended-stay accommodation was, suggesting there is potential for further growth in the market in America.

According to figures from STR, occupancy in extended-stay has been growing over the past few years. In the US, demand for extended-stay was 72.5% in 2012, 73.1% in 2013, and 74.9% in 2014. 125,000 new extended-stay rooms are expected to open in the US by 2018.

In the economy sector, STR data also showed that extended-stay supply growth was 2.6% YTD in May 2015 and ADR showed a 7.9% year on year change.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Business, Leisure, Community – Hospitality for millennials

New hospitality brand Zoku launched this week. This and other brands are responding to the needs of the millennial business traveller. BridgeStreet’s Bleisure Report 2014 found that the line between business and leisure travel is blurring as more people are looking for ways to include leisure activities into their business trips. In the survey ‘Nearly half of respondents (46%) add personal travel days to business travel “every trip” or to “most trips”.’

Young business travellers want to experience the city they are in and socialise and want to stay somewhere that enables them to do this, as discussed in these videos:

BridgeStreet’s survey of 640 international guests shows that instead of only exploring cities on leisure trips, ‘83% of respondents use time on business trips to explore the city they’re visiting.’ The report also states that: ‘The top reason for bleisure travel is a desire to see the world and gain cultural experiences’. This is also shown in TripAdvisor’s Trip Barometer 2015, in which 29% of people said their reason for visiting a specific destination was that they ‘love exploring the area’.

Zoku is aimed at people who need short or extended stay accommodation in a new city for work. The accommodation incorporates social spaces, events, and app to help guests to make connections. Zoku’s launch announcement goes so far as to proclaim the ‘end of the hotel room’. Instead of bedrooms there will be ‘lofts’, which are designed to be living and work spaces rather than just places to sleep, and are intended to be more homely and social in the same sized space as a hotel room. There is a new take on the holiday rep as ‘Zoku Community Managers’ will help make introductions between guests. The first Zoku will open in Amsterdam in autumn 2015.

Services apartment brand SACO is also targeting the bleisure traveller. Their research shows that Millennials are 50% more likely to have travelled for business in the past two years than people over 35. It says that 14% of millennials see travelling as an important networking opportunity (as opposed to 7% of their older peers), and that ‘millennials look for accommodation with shared spaces for socialising in’.

Radisson Red is a new brand from Radisson hotel group which again is promising spaces for Gen Y to work, play and socialise.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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