Over the last several years, new brands have been rolled out at a dizzying pace by the major franchise companies, all of whom are searching for any white space they can find to grow distribution and consumer loyalty.
While not all the brands introduced have gained significant development momentum, a handful have done well out of the gates, so to speak. This feature goes in-depth with five brands—all of which have been launched within the past 24 months—that have effectively captured the attention of developers, as well as the industry at large.
The extended-stay segment, in particular, has been a key focus for franchisors as the segment has outperformed other chain scales in recent years. As such, three of the brands featured here—ECHO Suites Extended Stay by Wyndham, Hyatt Studios, and StudioRes by Marriott—are part of the segment.
In addition, Hilton identified what it sees as white space in the “premium economy” segment, spawning its Spark by Hilton brand, while IHG Hotels & Resorts is targeting the midscale segment with Garner hotels.
Spark by Hilton
In January 2023 at ALIS (Americas Lodging Investment Summit), Hilton launched the premium economy conversion brand, which has some 43 hotels open and expects to have over 100 in operation by the end of the year.
Alissa Klees, brand leader, Spark by Hilton, put the brand’s rapid growth in perspective.
“When we think about the speed of this brand, it’s really unlike anything we’ve seen at Hilton,” she said.
She reinforced the brand’s potential, attributing its expansion “to carving its own lane between two chain scales” and further touted its unique identity.
“We definitely are excited by our first advantage mover status. Being the first out of the gate has helped us get a lead on this interesting segment in this interesting space. Over the next three to five years, we’ll see hundreds of these come into the system,” she said.
Spark by Hilton hotels are designed to provide a welcoming sense of arrival with colorful accent walls and artwork. According to the company, the public spaces provide multi-functional seating, from communal tables to rocking chairs, and guestrooms are comfortable and relaxing with simple, streamlined furniture. The brand also offers a complimentary signature bagel bar and premium coffee to guests in the morning.
Klees maintains the brand has a leg up as a result of being fresher, noting that all Sparks “are getting a level of renovation that brings the product up ahead of its comp set in its individual market.”
She also pointed out that efficiency was a chief consideration in the development of the brand, stating, “We thought about it from an operator’s lens.” As an example, the rooms don’t contain a lot of drawers and have a lot of flat surfaces, effectively saving time from a housekeeping perspective. She added that an updated top-of-bed package makes changing linens easier.
Garner hotels by IHG
Debuted in September 2023, the midscale conversion brand has four properties open and 12 properties in the pipeline within the United States, in addition to 15 deals signed globally. Garner hotels opened its first three U.S. properties in suburban Seattle, Washington; Macon, Georgia; and Quail Springs, Oklahoma within five months of its official introduction. IHG has stated its goal is to have more than 500 open U.S. hotels during the next decade, and the brand has plans underway to expand to EMEAA (Europe, Middle East, Asia, and Africa), as well as Japan and Mexico.
“That’s pretty good momentum for a brand that was launched less than a year ago. We anticipate Garner being a big growth opportunity for us,” said Julienne Smith, chief development officer, IHG Hotels & Resorts.
With a promise to deliver “easy going stays that get you on your way,” Garner is designed for value-driven travelers of all ages who want a reliable and relaxed experience, according to the company. The brand is designed to offer an affordable price point and includes, among other things, a complimentary hot breakfast.
Smith emphasized the opportunity as a conversion brand, particularly within the IHG system. She noted, as an example, that its Holiday Inn Express brand has some 3,000 properties globally and plays in the upper-midscale segment.
“We have the opportunity to convert hotels from outside the system whether they’re independent or otherwise. We also have the opportunity to keep some Holiday Inn Express hotels [in the IHG system] that maybe have priced out of the market. We now have a solution that’s solidly in the midscale space,” she asserted.
In discussing the benefits of the brand, Smith further emphasized details like a clean room as it relates to the “IHG promise in level of quality.” She also acknowledged the importance of breakfast as a key component in touting the value of Garner, adding, “We feel like our consumer base is driven by a good quality hot breakfast.”
Smith concluded of the brand, “I would say it provides the consumers what they need when they need it.”
ECHO Suites Extended Stay by Wyndham
Introduced in 2022, the new-construction brand earlier this month opened its first hotel in Spartanburg, South Carolina, and has some 270 deals signed for additional properties. Wyndham Hotel Group expects to have at least 100 ECHO Suites open within five years, including a handful of locations this year.
David Wilner, SVP, development, Wyndham Hotels & Resorts, touted the popularity of the extended-stay segment in explaining the nascent brand’s competitive set.
“It’s no secret that extended stay is having a moment—especially in light of the infrastructure boom across the nation—and it’s why we’re seeing many others get in on the segment, too,” he said.
Wilner further detailed regions that ECHO Suites is effectively homing in on.
“We look for markets that have population density and growth opportunity that can fill an extended-stay hotel for more than 14 nights. With the infrastructure dollars that are being deployed around the country, there’s a growing need for this kind of product, and we’re actively working on the development and sales sides of our business to help owners capitalize on that opportunity,” he said.
Wilner pointed out that the mega brand company is leveraging its experience with its Hawthorn Suites extended-stay brand, as well as economy brands like Super 8 and Days Inn, in catering to the everyday traveler.
“We know this guest better than anyone, and that knowledge is the foundation for what ECHO Suites stands for,” he said.
The 124-room ECHO Suites prototype requires under two acres of land coming in at approximately 50,000 square feet. Averaging 300 square feet, guestrooms consist of single- and two-queen studio suites with kitchens. The brand includes efficiently designed public spaces to limit labor requirements, according to the company, including a lobby, fitness center, and 24/7 guest laundry.
Further adding that “efficiency is the name of the game,” Wilner pointed out that ECHO only requires about 7.5 staffers on average, which is “much lower than what is traditionally needed in a transient economy or midscale hotel.”
Wilner emphasized that developers have responded well to the brand’s efficient prototype, of which he said 79 percent is revenue-generating square footage.
Hyatt Studios
The upper-midscale, extended-stay brand was launched in 2023 and is primarily new construction. The brand recently celebrated its second groundbreaking for a location in Huntsville, Alabama, and currently has more than 250 deals in various stages of negotiation, according to Dan Hansen, head of Americas development and global head of Hyatt Studios, Hyatt Hotels.
“Hyatt Studios has gained significant interest since we announced the brand last year and has become the fastest-growing brand at Hyatt. We strongly believe that Hyatt Studios will offer developers the best ROI in the upper-midscale space and will become the extended-stay brand of choice,” he said.
The brand’s offering includes a 24/7 marketplace, free high-speed fiber Internet, complimentary grab ‘n’ go breakfast, and EV charging stations. Suites feature well-equipped kitchens giving guests the opportunity to prepare meals in-room, according to the company. Additional amenities include onsite laundry, outdoor patios with grills, a Borrows program for borrowing everyday necessities, and weekly housekeeping.
Hansen cited what he sees as some critical points of differentiation for the nascent flag.
“What I believe sets Hyatt Studios apart—and has created such avid interest and pipeline growth—is our expansive opportunity in new markets, the flexible platform, and a lean operating model with efficient construction costs,” he said.
The brand has recently inked development deals for the following locations: Barrie, Ontario (Canada); Front Royal, Virginia; Oxford, Mississippi; Chesapeake, Virginia; Charlottesville, Virginia; Jacksonville, Florida; El Centro, California; Billings, Montana; Lehigh Valley, Pennsylvania; Savannah, Georgia; Harrisonburg, Virginia; and Ridgeland, Mississippi.
Hansen talked about the value of getting into new markets for both its guests and its franchisees, adding that areas near hospitals, airports, and lifestyle centers are also desirable for the brand.
“Hyatt Studios allows us to expand into white space and to offer stays in more secondary and tertiary markets where we have currently limited-to-no brand representation. In fact, more than half of the announced properties are in new markets to Hyatt and/or with first-time Hyatt owners,” he said.
StudioRes by Marriott
Marriott’s midscale, extended-stay brand was launched in June of 2023. The brand had its first groundbreaking earlier this year in Fort Myers, Florida, and the property is expected to open in spring 2025. Noah Silverman, chief development officer, Marriott International, noted the new-construction brand expects to have another 15 to 20 hotels break ground by end of the year with openings similarly expected to take place some time in 2025. He noted the brand has forged deals with a number of its longtime franchise partners for multiple project commitments.
At 124 rooms and 54,000 square feet, the StudioRes prototype represents Marriott’s most affordable cost-per-key product to develop and build. The fully furnished studio rooms include a kitchen and queen beds. Public spaces will offer amenities such as daily coffee service, a fitness center, laundry room, vending area, communal table, and a covered patio.
Silverman commented on the overall identity of the brand. “We think we built a really desirable product in terms of cost to build, cost to operate, and target consumer,” he said.
Silverman detailed target markets as well, emphasizing that from an operating perspective, the brand is built around an average length of stay of 20-plus nights.
“We think those kinds of consumers are going to concentrate primarily in secondary and tertiary markets,” he said, adding it’s not likely to be an urban downtown product.
Silverman emphasized the significance of the company’s collaboration with owners to develop the StudioRes brand, noting it was much greater than any previous brand.
“We really believe that we’ve created a brand that from a cost to build, cost to operate, and an affiliation cost model makes an awful lot of sense. We think that’s part of the reason that we’ve had such interest in it, because we really feel like we hit the sweet spot with the product from the beginning and we look to capitalize on that,” he concluded.
