REPORT FROM THE U.S.—Two extended-stay hotel brands at the opposite ends of the chain scale spectrum—Residence Inn by Marriott and Value Place—recently introduced next-generation prototypes for new development.
The 38-year-old upscale Residence Inn brand last month unveiled its 9th generation design with a focus on upgrades to the product’s bathroom, workspace and overall quality of furnishings and design. The first hotel to incorporate the new design elements opened earlier this year in the Cherry Creek neighborhood of Denver. Englewood, Colorado-based Stonebridge Companies owns and manages the 135-unit property.
“The main objectives of the project were to improve and fix some of the things we didn’t go far enough in our last redesign,” said Diane Mayer, VP and global brand manager for Residence Inn. “Two areas of focus were increasing the spaciousness of the bathroom and having a bath experience that is a little more commensurate with the residential experience our target customers have at home.”
Although the width of guest unit in the new design is six inches shorter than the previous prototype, the Residence Inn design team took space out of the kitchen to make the bathroom larger. Functionality of the kitchen was maintained through several changes, Mayer said. For one, the entry to the suite was moved to the center of the unit at the kitchen.
“The kitchen doesn’t feel any less spacious because the foyer now does double duty,” she said. “The layout of the kitchen changed slightly so it is more of an island, with the dining area also serving as the kitchen counter, which saves some space. In all, it has the feel of a residential great room.”
A dressing area with a mirror and electrical outlets was added to the bath unit. The shower compartment is 6 feet long with a glass door, and the bathroom includes several shelves for guests to store toiletries and other items.
The guest workspace was another priority. It includes a 6-foot-wide desk that’s been relocated to the living room facing a window and near a television. Electrical outlets integrated into the desk are spaced wide enough so plugs don’t cover other outlets.
“The last iteration of our guest suite had the desk right at the entry door with (the guest’s) back to the door of the suite,” Mayer said. “It was kind of in the middle of the kitchen and while it had great TV views, it was small and guests told us they felt kind of vulnerable to be sitting with the door to the suite so close to them.”
Some of the furniture in the unit, including a sectional sofa and the desk, were introduced in a renovation upgrade several years ago. This, Mayer said, provides consistency between existing properties and new builds.
“When we started the (renovation) project in 2010, we hoped as we came out of the recession there would be a backlog of renovation activity,” she said. “We made the decision to design the décor, including the furniture pieces, starting with the renovations and then use the same décor and pieces for the new builds.”
Chain officials said most of the 30 additions to the 630-property chain in the next year will follow the new prototype, and this year and next between 100 and 150 properties will complete renovations with the new décor package, including the signature desk and sofa.
Navin C. Dimond, president and CEO of Stonebridge, said the new look provides better ergonomics and convenience for guests.
“Sometimes, you can walk into a space that feels good to you, and (the new guest unit) is a space that feels really good to guests,” said Dimond.
Mayer said the new prototype is cost-neutral versus the previous generation. Savings were accomplished in a number of ways. Reducing the width of the suite saved some money, as did changing the mix of room types and including only one guest telephone in the unit. Dimond said the Cherry Creek property cost between $140,000 and $160,000 per key, including land. Earlier this month, the company broke ground on a Residence Inn in Pullman, Washington. The property, which is located on the campus of Washington State University, will include all elements of the new Residence Inn prototype.
In the new prototype, developers aren’t required to include two-bedroom units. Mayer said in existing hotels they often go unsold or are offered to high-level Marriott Rewards members as upgrades.
“That always doesn’t feel like an upgrade to the guest because if they’re only in the hotel for one night, what are they going to do with a second bedroom?” she said. “We made two bedrooms optional so it is completely at the owners’ discretion.”
A more efficient Value Place
While the focus on the Residence Inn redo is on the aesthetics and functionality of the hotel, economy brand Value Place took a different approach in creating what brand executives call Value Place 2.0.
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“Unlike many next-generation products, Value Place 2.0 is more focused on the economics of running a Value Place than it is on whether we like blue rather than green, or whatever are the latest trends in colors or what guests may prefer today rather than six months from now,” said Kyle Rogg, president and COO of the 10-year-old chain founded by extended-stay pioneer Jack DeBoer. “People invest in Value Place because they want to make money and this helps them do that.”
Chain officials said the cost to develop a prototype 124-room Value Place is between $3.8 million and $5 million, plus land costs.
The new design includes 30 enhancements to the product, most of which are aimed at increasing property operating efficiencies. The changes range from technology to guestroom design. Energy savings is a high priority.
The new properties have 7,000-BTU packaged terminal air conditioning units with remote management features to ensure units are in operation only when suites are occupied. Corridors have LED lights, while motion detectors in guestrooms control lighting. Chain executives say a new radio frequency identification guestroom locking system eliminates the need to rekey cards and results in less wear and tear on the opening mechanisms.
Housekeeping costs are another savings target. The new properties have hard-surface floors and wall-hung furniture for easier and quicker cleaning. Rogg said the changes should also appeal to guests.
“Cleanliness is both a reality and a feeling,” he said. “When we interviewed guests about our new hard-surface flooring, they told us it feels cleaner to them. And for us, it takes a little less staff time, which is hard to believe since we’re already operating with 4.5 or 5 (full-time employees) per property.”
Evan Carzis, principal of DC Hospitality, owners of six Value Place properties, said his firm has already adopted some of the design changes and expects to spend about $800,000 to upgrade its hotels.
“It’s a much nicer look for the properties,” Carzis said. “And while the design is more attractive and younger looking, it’s also easier to maintain and clean, which will cut down on some of our operational expenses.”
Carzis said his firm will break ground on a new Value Place in New Jersey in November and has “a couple of other sites either under contract or about to put under contract” in New Jersey and Pennsylvania.
Rogg said initial results from the first new property with the changes are encouraging. The hotel, which opened in late 2012 in Alpharetta, Georgia, had in its first three months of operation electric bills 40% lower than comparable properties with the same climate and geography, Rogg said.
All new Value Place properties will include the new standards, and existing properties will incorporate many of the features as they upgrade. Rogg said the company will use a carrot rather than a stick to persuade franchisees to adopt the upgrades.
“We’re setting up some show properties in our corporate hotels to demonstrate to our franchisees the rate (opportunities) and operational efficiencies,” Rogg said. “We believe they will be highly motivated to make the changes when they see the results.”
In January, New York-based private equity firm Lindsay Goldberg made a $100-million investment in Value Place, which the company will use to do upgrades at its 45 company-owned properties (out of a system total of 181 hotels) and develop as many as 50 additional corporate hotels in the next five years.