The recessing has made business rethink the way they do businesses. I am not talking about financial firms or extremely huge corporations; in fact, hotel chains and landlords have become more innovative. The concept of Extended Stay Hotels is becoming more popular nowadays. Earlier today we wrote about the extended hotel stay vs. condos, but this story will cover how hotels become innovative on the concept.
With the tough economic environment, businesses are reluctant to spend a lot on travel and accommodation. Individuals alike are not willing to spend big amounts of money on expensive hotel suits. The concept of Extended Stay Hotels can be viewed as win-win situation for both the landlords and occupants.
Extended stay hotels are a type of temporary housing with services unavailable at typical hotels. Extended Stay Hotels are meant to avail services and features similar to home-like amenities.
Whereas Extended Stay Hotels are still in the budding stages, North America at present has 27 Extended Stay Hotel chains in North America with at least 7 hotels. This represents well over two thousand properties. Others are making money by giving them away for corporate rentals.
There is no doubt that upscale apartments would have sold more quickly had the economic situation been good. However, landlords can not afford to sell off their property at a fraction of their cost—so they are converting them to Extended Stay Hotels as they wait for the economy to recover.
Chief executive of RentalSpaceNetwork.com in Scottsdale, Ariz says landlords can’t sell their property because there are no buyers, so by converting them to Extended Stay Hotels, they can make money.
Consequentially, popular lodging chains like Hilton, Marriott and InterContinental have also expanded their lines of Extended Stay Hotels. These amenities feature kitchens and one can rent the property for a week or a whole month.
Research conducted by STR Global shows that the number of Extended Stay Hotels rose 9.2 percent in 2008 alone. The number is expected to increase this year. Incidentally, demand for Extended Stay Hotels rose by 3.5 percent in 2008, while the general industry recorded a 1.5 percent decline in 2008.
There is no doubt that the current economic situation is influencing the demand for Extended Stay Hotels. Companies want to save costs and landlords don’t want to sell off their property at a fraction of the cost.
There is considerable disparity among Extended Stay Hotels with deference in quality and the facilities that are available. Some of the Extended Stay Hotels draw customers who use the hotels as semi-permanent lodging. Extended Stay Hotels are well-liked by business travelers on extended missions and families who are relocating. They use it as temporary shelter.
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