REPORT FROM THE U.S.—The release of a new brand strategy while folding in some recent acquisitions could put Hyatt House in a good position given the financial climate.
“This allows them to grow the brand quite rapidly,” said Mark Skinner, partner at The Highland Group, an extended-stay research firm. “It’s very difficult to build new right now, particularly in the upscale extended-stay segment.”
Hyatt will convert to the Hyatt House brand 38 Hyatt Summerfield Suites as well as 16 Hotel Sierra hotels that were recently acquired from LodgeWorks LP. Name changes and signage will be present at all 54 locations by January 2012, according to Gary Dollens, global head of franchising and select brands at Hyatt Hotels Corporation.
Half of the real-estate portfolio is owned by Hyatt, so the transition in name and property changes will go quickly over a relatively short period of time, he said. “We’re now looking at how we will incorporate items into the brand. Our approach is a phased-in approach,” Dollens said.
After signage, the second phase will be soft changes to operations, such as the Eggs Your Way breakfast. The remaining items from the new elements will be phased in through normal capital cycles or as they are identified as brand standards, according to Dollens.
• Read “Hyatt rebrands extended stay as Hyatt House.”
Among the first to see the new Hyatt House signature elements, such as a Great Lounge, the H Bar, backyard social space, revamped suites with multitasking islands and “peek-a-boo” kitchen cabinets, and a new market store with an open feel, will be three former Woodfin Suites in California Hyatt acquired in May.
“We set aside significant capital dollars for rebranding when we made the acquisition, so we will go into those relatively quickly in the first part of 2012,” Dollens said. “Those will be the first to represent what Hyatt House will be. It will give owners an idea of what to expect.”
Development Ad Will Appear Here
Hyatt said at the time of the acquisition that it would be putting US$15 million toward renovations on the three Woodfin hotels. Dollens did not have a cost estimate for existing Summerfield Suites owners.
Skinner said the updates will help the former Summerfield Suites, which historically has performed “pretty well” in the segment, go up against some of the larger upscale extended-stay brands, such as Residence Inn by Marriott and Staybridge Suites.
“They will get some economies of scale with spreading those (marketing) costs across more properties,” he said. “And of course the announcement of a new brand is always good for publicity and marketing. … The extended-stay segment is on the ascendency.”
Dollens said it’s the right time for a new extended-stay brand. “We can do the same thing we did with Hyatt Place and lead the target.”
The feedback from owners has been positive. “We worked very closely with the owners’ advisory group so this has not been sprung on anybody,” he said. “It’s about understanding where the brand and the segment needed to move to. … The way to get the best results is to be inclusive in the process.”
RLJ Lodging Trust, which owns five Summerfield Suites properties according to its website, declined to comment. Other companies that own Summerfield Suites hotels—Noble Investment Group, Concord Hospitality and JHM Hotels—did not respond to inquiries by press time.
