InnVentures finds sweet spot with extended-stay hotels
 
InnVentures finds sweet spot with extended-stay hotels
29 SEPTEMBER 2020 7:17 AM

Management company InnVentures has seen organic growth, even during the pandemic, and remains committed to growing its portfolio of extended-stay and select-service properties. 

TUKWILA, Washington—Despite the pandemic, management company InnVentures has seen organic growth, said COO Kimberly O’Fallon.

She said that growth has been due to the performance of hotels InnVentures manages “and those ownership groups that we work with have trusted us with growing their portfolios and they have referred to others.”

The company has always grown at a “nice, manageable pace,” she said, but what the pandemic has taught her company is that being there for owners and showing commitment to their success is now more important than ever.

“Our ability to react quickly to this environment and to adapt accordingly has helped us grow efficiencies in (our owners’) hotels, and we have found that's exactly what our owners are looking for,” she said. “Now really seems like the time to proactively look to grow and to come out of the pandemic stronger than ever. We're putting systems in place. We're realigning in an effort to be able to grow more efficiently and quickly as we come out of this crazy time we're in.”

National growth
InnVentures currently has a portfolio of 46* hotels and is looking to grow anywhere across the U.S., O’Fallon said.

“We’re a national company right now, and we already manage on both coasts and in many of the states in between. So we’re really easily able to pick up anything and we want to do that,” she said.

The company’s sweet spot is select service, specifically in the extended-stay segment.

“InnVentures is the first franchisee of the Residence Inn brand and our culture is really steeped in that space,” she said.

The company currently manages 27 select-service brands for Marriott International, Hilton, Hyatt Hotels Corporation and InterContinental Hotels Group, O’Fallon said.

Select-service and extended-stay properties have fared better than others throughout the pandemic, but O’Fallon said those segments have always been a focus for InnVentures.

“It’s always been our sweet spot, and it’s what we’ve done for 38 years,” she said. “We started in extended-stay only and then we kind of moved into the other select brands, and we love them all, but I would say extended-stay is still the strongest.”

In August, InnVentures’ extended-stay properties ran 70% occupancy collectively, which “with all things considered is not too bad,” she said.

The company’s select-service properties have also seen better performance than hotels in the large metro markets, which is why InnVentures is “happy in the space we’re in,” she said.

Culture
O’Fallon has been with InnVentures for 26 years. It is the management company’s culture that really sets it apart from others, she said.

“The culture, I hate for this to sound cliché, but it really stems from the people and our shared values and everybody talks about (culture) but I do not believe everybody lives it,” she said. “I believe our people live it every day, and the most important thing we do is get the right people in the right jobs at the right time and set them up for success. When that formula works, it all falls into place behind that.”

*Correction, 1 October 2020: This article has been updated with the correct number of hotels in InnVentures' portfolio. 

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.