Limited-service hotels take on upscale ambience
Roger Yu, USA TODAY, 4/17/2007
Business travelers are finding them everywhere these days. Stylish new or refurbished hotels with rooms looking like pages out of Ikea or West Elm catalogs, and lobbies resembling a Starbucks. They have the latest technology, a nod to the younger and more mobile workforce.
And they're the hottest segment in the lodging business: upscale limited-service hotels.
PHOTOS: Cheap chic hotels
Hotel companies are poised to open more than 200 in the next nine months under new names such as Cambria Suites, Hyatt Place and Nylo. Aloft is a new brand set to launch in 2008. The new brands join Marriott's Courtyard and SpringHill Suites, and Hilton's Garden Inn, established brands in the category that are also driving the rapid expansion of hotels in the $100-to-$160-a-night price range.
Don't expect the high-end amenities found at upscale full-service hotels: spas, large banquet rooms, doormen, bellhops, valet parking, extended room service, concierge services and high-end restaurants. But don't expect the higher prices, either.
Because upscale limited-service hotels are about $30 to $100 a night cheaper, these "cheap chic" chains are betting that they will draw road warriors steered by their cost-conscious corporate travel managers.
Owners of the new brands believe their competitive advantage comes from offering rooms with all the amenities of full-service hotels at lower prices. Nearly all feature high-end TVs. Cambria features two LCD TVs in the room, one in the living area and the other near the bed. Marriott began converting standard TVs to 32-inch LCD HDTVs this year.
They typically have both wireless and wired Internet access in the rooms, set next to ergonomic chairs and tables. Swimming pools and workout rooms are standard features. The decor is decidedly streamlined and modern.
The rapid emergence of high-end limited-service hotels highlights changing consumer preferences and growing concerns about rising business-travel costs. Hotel companies are targeting frequent travelers — particularly those in their 20s and 30s — who are weary of rooms with a "hotel" feel and are demanding more creative design.
The category appeals to travelers already familiar with other companies and products that balance style with affordability, such as Target, JetBlue and Mini Cooper, says Ross Klein, who oversees Starwood Hotels' development of Aloft.
Yeddy Kaiser, a software consultant, from North Branch, Mich., is the kind of traveler hotel companies have in mind. "My personal preference is a hotel room that doesn't always seem to be a hotel," he says.
Ed Krach, an engineer from Austin, says he is a frequent guest of a Marriott SpringHill Suites in Pittsburgh, even though it's five minutes from a full-service Marriott. "The full-service Marriott is nicer, but I cannot justify $100-a-night difference for a room," he says.
Choice Hotels International, a company known for its budget brands, opened its first upscale limited-service hotel last week, a Cambria Suites in Boise. Today's guests, says Don Griner, chief designer of Cambria Suites, "want to take their lifestyle with them."
Because new hotels require large plots of land, many of the recently introduced chains plan to build initially in suburbs, close to airports and in smaller cities before expanding into city centers. John Russell, a veteran hotelier who is launching Nylo, says the chain plans to build near outdoor malls with nearby offices and apartments. Nylo plans to open its first property later this year in Plano, Texas.
Upscale limited-service hotels typically have fewer than 200 rooms, smaller than most full-service high-end hotels. They also often lack the curb appeal and the grand entrance of larger, more expensive sites. Lobbies are smaller, though the hotel companies hope to entice guests to linger longer in the public areas with soft chairs, coffee bars and social events.
Service, features getting upgrades
Upscale limited-service hotels are on a growth spurt. Here's what travelers may expect from eight existing and planned brands in the category.
Marriott Courtyard
Marriott SpringHill
Hilton Garden Inn
Hyatt Place
Indigo
Cambria Suites
Aloft
Nylo
Locations in USA
650
153
292
15
7
1
none (First hotel planned for 2008.)
none
Additional hotels this year
40
20
45
105
6
4 or 5
N/A
1
Average room size (sq. ft.)
330
375
335
510
370
400
300
300
Average daily rate
$118
$99
$114
$125-160
$140
$149
N/A
$135
Separate living area?
No
Yes
No
Yes
No
Yes
No
Most hotels will have some suites
Hot meals served in lobby?
Breakfast; some serve lunch, dinner
Breakfast
Breakfast, lunch, dinner
Breakfast, lunch, dinner
Breakfast, lunch, dinner
Breakfast, dinner
Pre-packaged foods sold
Breakfast, lunch, dinner
Room service?
No
No
Yes
No
Yes
Yes
No
No
Valet parking?
City locations only
City locations only
City locations only
No
City locations only
No
No
In some locations
Free Wi-Fi in rooms?
Yes
Yes
Yes
Yes
In some locations
Yes
Yes
Yes
Free wired Internet in room?
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Type of TV
32" standard
32" standard
26" standard
42" LCD HDTVs
32" standard
26" and 32" LCD*
32" LCD HDTV
32" LCD HDTV
Comments
Room and lobby upgrades are planned.
Room and lobby upgrades are planned.
Now upgrading to 26"- or 32" LCD-HDTV.
Food served 24 hours in lobby.
Hotels to switch to 32" LCD-HDTV by 2008.
Next to open: Green Bay and Appleton, Wis.
First location in spring 2008 in Lexington, Mass.
First location in Plano, Texas, in December.
* = two TVs to a room
Sources: The hotels