Hotels’ Extended Stay Play

Episode Notes

Hotel giants like Marriott, Hyatt, and Hilton have unveiled plans in recent weeks to open extended-stay brands. They’re betting the segment will continue to grow in popularity in years to come, reports Senior Hospitality Editor Sean O’Neill.

Marriott CEO Anthony Capuano said in a recent earnings call that his company would be launching an extended-stay product in the near future. Hilton CEO Chris Nassetta said it would debut an extended-stay brand soon while Hyatt unveiled a new brand last month as part of its entry into the sector. 

So what’s driving the enormous interest in extended-stay brands? O’Neill cites the ongoing housing crisis in the U.S. as one factor, noting that home construction has failed to keep up with demand in many U.S. markets. He adds the resilience of blended leisure and business travel could boost extended-stay brands for years to come.  

Next, the Soho House chain of membership clubs is eager for its members to increase spending. However, it’s not necessarily looking for more traffic in its properties, reports Senior Hospitality Editor O’Neill.

O’Neill writes Soho House is focused on upselling members. It’s rolled out an updated menu of food and beverage times that it hopes is more locally relevant. CEO Andrew Carnie said its goal is to boost spending while not necessarily wanting more footfall in its properties. O’Neill adds the Soho House is looking to generate at least $1 billion in total revenue this year. 

Soho House total membership rose 38 percent in the first quarter from the same period last year. But it was in the red, posting a $16 million net loss during the first quarter. 

Finally, India is poised for a major aviation boom, with domestic bookings recently surpassing pre-pandemic levels, writes Asia Editor Peden Doma Bhutia, and Middle East and Asia Reporter Amrita Ghosh in Skift’s India Travel Daily newsletter.

Travel technology provider Sabre attributes the surge in domestic traffic in part to the rise of low-cost carriers in the country. India’s low-cost carriers flew a little more than 26 million travelers in the first quarter of 2023. That’s a 14 percent jump from the same period in 2019. 

In addition, Indian authorities have pledged to make major improvements to the country’s aviation infrastructure. As India aims to open 70 more airports by 2025, the government has announced plans to invest $12 billion in infrastructure upgrades. Prominent Indian airlines, including Air India and Akasa Air, have also made large aircraft orders recently.