HB on the Scene: Choice's Burgett talks about extended-stay strategy

Summary

In this insightful interview, Ron Bergette, SVP of Development for Extended Stay at Choice Hotels, discusses the brand's ongoing success, particularly following the acquisition of WoodSpring. He highlights the importance of maintaining focus and simplicity in their operations, which has helped them remain competitive in a growing market. Bergette also emphasizes the significance of their partnership with AAA, noting that many of their hotels are strategically located for road travelers. As they prepare to open their 500th hotel, the conversation underscores Extended Stay's commitment to delivering value and quality to its customers.

Takeaways

• 🏨 Extended Stay has consistently performed well, even before the pandemic.
• 🚀 Choice Hotels' acquisition of WoodSpring significantly boosted their success in the Extended Stay category.
• 💡 Choice Hotels focused on maintaining the core strengths of the WoodSpring brand post-acquisition.
• 📈 The company emphasizes a simple, focused strategy to stay ahead of competition and avoid distractions.
• 🔑 Choice Hotels is set to open its 500th hotel in Glendale, Arizona, showcasing their growth.
• 📊 The importance of focusing on both top-line and bottom-line financial performance is highlighted.
• 🤝 The partnership with AAA has proven beneficial, aligning well with their customer base.
• 🛣️ A significant percentage of Choice Hotels' properties are located near interstates, catering to road travelers.
• 👥 AAA members are a key demographic, with a notable overlap in customer bases.
• 👏 The interview emphasizes the importance of keeping things simple while driving brand success.

Q & A

What has contributed to the success of Extended Stay hotels?

The success of Extended Stay hotels has been attributed to their strong performance even before the pandemic and the subsequent growth after it. The acquisition of the WoodSpring brand by Choice Hotels significantly boosted their market presence.

How did Choice Hotels enhance the Extended Stay brand after acquiring WoodSpring?

After acquiring WoodSpring, Choice Hotels focused on understanding the brand's strengths and applied those insights across their Extended Stay hotels, implementing the brand's successful DNA into their other offerings.

What are the four Extended Stay hotel brands mentioned?

The four Extended Stay hotel brands mentioned are Every Home Suites, Bourbon Studios, MainStay Suites, and WoodSpring Suites.

How does Choice Hotels differentiate itself from its competitors in the Extended Stay market?

Choice Hotels differentiates itself by leveraging its first mover advantage, focusing on its core offerings, and avoiding distractions from new competitors. They prioritize keeping operations simple and ensuring strong return on investments for franchises.

What milestone is Choice Hotels celebrating with the opening of their 500th hotel?

Choice Hotels is celebrating the opening of their 500th hotel, which will be located in Glendale, Arizona, specifically under the Every Home Suites brand.

What partnership did Choice Hotels announce at the beginning of the year?

At the beginning of the year, Choice Hotels announced a partnership with AAA, naming five of their brands as AAA preferred.

How does the partnership with AAA benefit Choice Hotels?

The partnership with AAA aligns well with both organizations, as a significant percentage of AAA members are also Choice Privileges members, which enhances customer loyalty and travel patterns.

What percentage of Choice Hotels are located near interstates?

Approximately 75% of Choice Hotels are situated within a mile of an interstate, catering to travelers on the road.

What is the focus of Choice Hotels in their Extended Stay brand?

Choice Hotels focuses on maximizing both top-line revenue and bottom-line performance for their Extended Stay brand, ensuring sustainable growth and profitability.

What is Greg Wallace's role in the conversation?

Greg Wallace is the senior editor with Hotel Business, moderating the discussion with Ron Bergette about the Extended Stay segment and Choice Hotels' strategies.