Residence Inn and TownePlace Suites have both grown market share during 2002. Through July year-to-date, Marriott-managed Residence Inn and TownePlace Suites hotels achieved a RevPAR (revenue per available room) premium over their competitive set of 32 percent and 16 percent respectively, according to the July Smith Travel Research results. Currently, the extended- stay market represents approximately 30 percent of the overall lodging market (according to D.K. Shifflet and Associates.)
Residence Inn defined the extended-stay lodging category in 1975 when it created the first residential-style hotels specifically designed for long-term guests. Often available for the same price as a standard hotel room, Residence Inn hotels offer large suites with separate living and sleeping areas, fireplaces and fully equipped kitchens. Nightly room rates also decline the longer the guest stays. Residence Inn was acquired by Marriott in 1987 and became a key component in the company’s lodging segmentation and growth strategy. In 1997, based on the success of Residence Inn, Marriott launched TownePlace Suites, a moderately priced extended-stay brand.
Today, Residence Inn is ranked by J.D. Power and Associates as the best extended-stay hotel brand in the industry. TownePlace Suites was named by Business Travel News as the best mid-price extended-stay brand for three consecutive years (the BTN ranking is a result of a survey of more than 500 corporate travel planners).
Residence Inn’s and TownePlace Suites’ strong preference, high guest satisfaction and innovative design make them a top choice for lodging developers and franchisees. Currently there are Residence Inns under construction or in development, in New York’s Times Square, Washington, D.C., San Francisco, Chicago and Baltimore. TownePlace Suites are currently in development outside major cities, including Pittsburgh, Kansas City, Kan., and Albuquerque, N.M.
Planned enhancements for the Residence Inn brand include a revised decor package featuring new wall colors, window treatments, bedding, kitchen cabinets, dinnerware, granite counter tops and lighting. The Residence Inn gatehouse will also offer new fireplaces, added windows, expanded libraries and outdoor patios with teak furniture.
Planned changes for the TownePlace Suites brand will focus on guest comfort and a more residential look and feel. Enhancements will include custom furnishings, hardwood-style kitchen and bathroom flooring, a new bedding package and cultured marble bathroom countertops. The addition of barbecue grills in the pool areas will enhance TownePlace Suites’ sense of community.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
