Extended Stay Hotels

The Extended Stay Lodging Option, by Ron Callari

The demand for extended-stay lodging has existed since savvy travelers found the time and the inclination to travel away from home for business or leisure. The extended-stay concept dates back to 19th century England when wayfarers arrived at inns and rooming houses in horse-drawn carriages, and travel was a more leisurely affair than it is today.

The man credited with inventing the US extended stay product is Jack DeBoer, who started Residence Inn (later sold to Marriott) and remains active with Candlewood Suites.

Today, brands such as Homestead, Extended Stay America, and others have raised the bar in terms of value offered to travelers. The traditional hotel product is losing share to facilities that can provide guests with a home away from home - at a good rate. It is a viable lodging alternative for the business person or leisure travelers accustomed to more expensive hotels and resorts.

The lexicon of extended stay in its many variations can be attributed in part to its history of development. In the United States, extended-stay lodging has been adopted by the hotel industry as an extension of what it has to offer the traveling public. As such, the market is primarily comprised of three extended-stay products: (1) all-suite hotels; (2) limited-service hotels; and (3) serviced apartments, the corporate housing market.

As lodging in general experiences a slow down in the economy, this segment of the industry continues to attract high demand. Extended stay hotels, which escalated in number and brand just a few years back are current industry leaders in occupancy according to The Highland Group in Atlanta, a consultancy firm that has been following trends in the extended stay market
since the early 80s.

And there's good reason for their popularity. Guests like the built-in kitchen facilities and the residential atmosphere. The services that often include grocery outlets (Summerfield Suites by Wyndham includes a small convenience store in the majority of their hotels) and lower daily rates are attractive incentives.

Corporate apartments usually involve longer stays - often defined by a lease and a minimum-stay of one month. Oakwood Corporate Housing, the longtime leader, now has 20,000 apartments in 22 states. They boast full-size apartments that include fully stocked kitchens, utilities and housekeeping services. And, because they are Federal Emergency Management Association certified locations, these facilities appeal to people who work for and are reimbursed by the government.

One of the leaders in the field continues to be Residence Inn by Marriott - a pioneer in the extended stay arena. Marriott also has other brands within the market: TownePlace Suites and SpringHill Suites, mid-level extended stay; ExecuStay by Marriott, corporate apartments in the US; and Executive Apartments in Europe. Most of these Marriott brands adapted to the wired
business needs of the customer looking for extra phone lines and data port outlets. The Residence Inn has installed extra hookups in business meeting rooms as well, and Marriott International is in the process of installing
high-speed access in all its properties.

Homestead, designed specifically for the extended stay traveler, features studio rooms with a fully equipped kitchen, plus a workspace with computer dataport, free local phone calls and personalized voicemail. All at surprisingly affordable rates.

At Homestead Suites the lobby is equipped with a pantry and a fireplace. Continental breakfast is served daily and the services (similar to a traditional business hotel) include a meeting room, FAX and copy center, an indoor pool with whirlpool, fitness room and game room. The suites include a living room with sofa sleeper, fireplace, cable TV, VCR, wet bar and deck. A
separate bedroom with a king-size bed includes an ensuite bathroom, with a two-person whirlpool tub. Kitchens are equipped with sink, refrigerator, microwave and coffee maker.

With 112 locations to date in key business markets across the United States, Homestead provides a quality lodging experience for the growing ranks of travelers staying four nights or more. The company targets large corporate customers with multi-location extended stay needs and offers nightly, weekly and monthly rates.

Hotels on the upper tier can perform many homelike services for you. At Homewood Suites by Hilton, according to Jim Holthouser, senior vice president of brand management, "We do things like free grocery shopping; there's a sheet hanging on the refrigerator and you just check off what you need."

In addition to Homewood Suites by Hilton at the high end, Residence Inns and the Summerfield Suites by Wyndham are considered on equal par. In the middle are Candlewood, Mainstay Suites (a Choice Hotels brand), Sierra Suites, Staybridge Suites and TownePlace, and in the economy tier are Extended Stay America, Homestead Village and Suburban Lodge. According to the American Hotel & Lodging Association, the average length of stay in 1999 was 33 nights at the budget level, 15 to 18 nights in the mid-market and nine nights at the upscale end.

The current generation of extended-stay hotels, however, is dominated by properties that are priced in the mid- to lower-end range. Like the upper end, these moderate-price, extended-stay properties offer a residential-style guest unit, albeit with more modest furnishings. However, unlike the upper-end extended-stay hotels, the moderate-price properties are designed to welcome the price-sensitive, extended-stay travelers.

At the high end and not often associated with the extended stay market, the Ritz Carlton lures long-term business travelers who account for approximately 4 percent of its clientele. Ritz hotels offer high-speed connections in each guest room, and every U.S. location boasts an on-site "technology butler." Always available, this live tech wizard bails out guests who run into technical glitches. A Ritz-Carlton business travel sales manager consults with each customer to identify his or her needs and will arrange anything from providing an in-room exercise bike to arranging for daily pressing services.

The chain is converting three suites at its Atlanta property into extended-stay units by adding full kitchens and larger parlors than usual. The Residential Suites at the Ritz-Carlton Towers in Boston offers 63 extended-stay units.

Of course, one big reason to choose extended stay if you are on a long trip is the availability of frequency points at extended stay brands run by the likes of Marriott, Hilton and Six Continents. Don't forget to ask to sign up for these programs.