Extended-stay lodging: a new high-return product; reduced payroll and supplies costs make favorable return rates possible

Article Abstract:

Extended-stay lodging is a recently developed real estate product that has enormous revenue potential for the real estate industry. In 1996 and 1997, over $1 billion went into developing extended stay lodging. With projected low development, payroll, supplies, and operating cost, investors expect extended-stay lodging to have unleveraged internal rates of return of more than 20% and leveraged rates of over 50%. To achieve profitability, managers should consider guests' specific lodging needs and should manage facilities as apartments rather than as hotels.

Lodging & Tourist Services, Accommodation, HOTELS AND OTHER LODGING PLACES, Product development, Travel industry, Real estate industry

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Extended-stay lodging: an unexplored opportunity

Article Abstract:

The market for weekly rental lodging is one in which demand exceeds supply. The all-suite hotel was introduced to meet this need, but companies have focused on the short-term market. Sources of extended-stay demand include corporate and personal relocation, corporate training, and military and government needs. Construction crews, contract workers and health care specialists are among other groups with extended-stay lodging needs. Economic and demographic trends present a great opportunity to the lodging industry in meeting extended-stay demand.

Marketing, Supply and demand

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Exploring solutions in hotel workouts

Article Abstract:

The Persian Gulf War and the national recession have created a vast segment of endangered hotel investment properties. Only about 20% of hotels constructed recently are considered safe from financial problems. For a large number of properties, 'workouts' are being negotiated to reduce debt repayments. These workouts are being negotiated among five levels of hotel interests, including investors, management companies and lenders. All have high hopes that surviving properties will soon be profitable again.

Subdividers and developers, not elsewhere classified, Analysis, Economic aspects, Real estate development, Cash management

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