PHOTO: Advaya Hospitality's four U.S. principals (from left): David Klein, general counsel and chief administrative officer; John Russell, CEO; Chris Jones, chief development officer; and David Young, chief real estate services and development officer.
Former AH&LA chairman and founding partner of NYLO Hotels John Russell is partnering with Auromatrix Group from India and a team of lodging veterans to launch Advaya Hospitality. Russell said the new global company aims to bring the next generation of lifestyle hotels and related products to major cities worldwide.
Advaya will develop, acquire, franchise and operate full-service and select-service
hotels. In an interview with Lodging during the AH&LA Fall Conference in New York City, Russell said the new company’s brands will launch simultaneously in the U.S. and India, starting in the second quarter of 2011.
“We should have something to show by the end of January or early February,” Russell said. “We will build in India while at the same time creating a fund in the U.S. to acquire hotels in gateway cities that are convertible.”
Advaya is committed to building 10 hotels in India over a two-year period.
Russell said the company is working on brand names for the hotels and is testing three names. Meanwhile, the company is focusing on locations. Russell said targets include New York, Miami, Atlanta, and Phoenix in the U.S., and Chennai, Tuticorin, Kakinada, Vizag, and Vellore in India. Later expansion is planned with an eye on China, Thailand, Malaysia, Singapore, Sri Lanka, and Brazil. “These are countries that don’t have brands,” he said.
In an earlier announcement on Saturday, Russell pointed out that the timing for the new company is right. “The economy is starting to come back, and there are many properties and sites out there that present outstanding opportunities,” he said. “We are increasingly becoming a transparent world, and there is demand for tremendous lifestyle products in economic centers around the globe. Advaya will make the most of these opportunities with exciting new approaches for expansion in the U.S. and internationally.”
Russell, who is stepping down as CEO of NYLO to lead Advaya, is well versed in lifestyle hotel development. While NYLO’s development has been somewhat slowed by the economy, Russell said the two opened hotels are outperforming their markets and he is still “bullish” on the brand. He said it is well positioned as the industry emerges from the recession.
Michael Mueller, NYLO’s founder, is NYLO’s new CEO. Patrick O’Neil also is staying on as NYLO’s executive vice president of operations.
Advaya Hospitality will merge all aspects of hospitality in one multifaceted platform, according to the new company. The company will acquire, develop, franchise, manage, and consult across the full hospitality spectrum: land acquisition, design, construction, hotel management, and tech support. It also will serve as a primary supplier to the hospitality industry.
Overseeing Advaya will be hospitality veterans in the U.S. and India. In the U.S., Russell will serve as CEO. Chief Development Officer Chris Jones co-founded NYLO and gave that brand its unique urban style. General Counsel and Chief Administrative Officer David Klein has represented leading hotel companies worldwide. Chief Real Estate Services and Development Officer David Young launched the International Hotel Division for Hospitality Franchise Systems/Cendant as part of the team that spurred HFS’ explosive growth in the 1990s. The U.S. group is joined by senior executives of Chennai-based Auromatrix, who include Principals Kumar Sitaraman, Udday Kumar Krishnan, Sonny M. Khalil, and Bala Kamallakharan.
Russell said that the Advaya hotels. They will be high on design and amenities. In the U.S., newly constructed properties will have 60-155 rooms, a restaurant, bar and lounge, meeting space, gym, and business center. The hotels promise an upbeat vibe; the latest technology; and fun, unexpected design flourishes throughout. They will cater to business and leisure travelers with a passion for music, technology, design, and cuisine.
“Our hotels will be a lavish departure from others in their price category,” Jones said in the initial announcement of the company. “The bars and lounges will be destinations in themselves. With their rich textures, vibrant bars, and lobbies that are great places to meet friends and relax, these hotels will be a refreshing new experience and fun interjection to business travel.”