You may read the April 11, 2018 article in Central Penn Business Journal HERE.
Justin Shelton of our office has been busy helping Hilton whittle down the development costs of its new Tru brand. Springwood opened the third and the sixth Tru by Hilton hotels in the world, and Hilton has been capitalizing on the lessons we learned. Lean more in the following article: Hilton Brings Better Affordability to Tru
By actively listening to its developers and drawing out their participation in brand improvement, Hilton is establishing itself as a force to be reckoned with in the U.S. hospitality industry.
Mark Skinner of the Highland Group has written an informative article about the continued success of the U.S. Extended-Stay segment of our industry. You can read it HERE.
What I find fascinating about the article is that the extended-stay segment is claiming essentially all of the RevPAR growth in the U.S. at the moment. How could that possibly be? The answer, in my opinion, is Home2 Suites by Hilton.
Nearly 100 new Home2’s will open in 2017. In other markets where a Home2 is already in the works, some developers are opting to build TownePlace Suites by Marriott instead, so those markets will see two new extended-stay products opening.
Now, TownePlace has been around for a while and it’s a good brand, but Home2 has redefined and re-energized the upper-midscale extended-stay market. There will be as many Home2’s as TownePlace’s around within a year or two, and Home2 has only been around half as long as its Marriott counterpart.
This rapidly expanding segment if giving travelers new, popular choices they never had before. Is it any wonder that extended-stay is hogging the revenue growth in the U.S. hotel market?
My prediction is that we will see renewed market share growth in the mid-scale segment over the next two years, which will be primarily attributable to Hilton’s new Tru brand. This upstart brand is slated to zoom from zero to 250 hotels open in just over 1.5 years, making it the fastest-growing hotel brand in the history of the U.S. industry. Watch for it.
PS. Full disclosure: Springwood uses the Highland Group for nearly all of its new hotel feasibility studies, because they seem to get it right.
You can read the BASF article on Springwood’s Tru by Hilton Lancaster, PA HERE.
Central Penn Business Journal led with a comprehensive article about Springwood’s most recent accomplishment and the opening of the Tru by Hilton in York. You can read it HERE.
The Tru York, PA is only the sixth Tru by Hilton open in the world. Springwood’s Tru Lancaster, PA was the third. With six Tru by Hilton properties now open globally, at the moment (October 2017) Springwood Hospitality manages one-third of the global supply of all Tru by Hilton hotels.
The Highland Group has just issued the second quarter 2017 report on the US extended-stay lodging industry. Report highlights for extended-stay hotels:
- Fastest quarterly supply growth since 2009
- Strongest mid-year demand growth since 2010
- Fourth consecutive mid-year period with double-digit room revenue increase
- Sixth consecutive quarter of RevPar growth above 3%
- Rooms under construction up 22% over the past year
I find it interesting that with U.S. extended-stay hotel supply growing as fast as it did in 2009, revenue is STILL climbing at double-digit rates. That is simply phenomenal.
Most analysts expect the rate of increase to slow as a result of new supply. I feel this is realistic. But think about what this means: extended-stay RevPAR has reached new record-highs, and with this as the STARTING point, the rate of growth may decelerate. We’ll take that. It will achieve great results for our investors.
That’s why we remain optimistic about the near-term and mid-term future of our industry.