Back in June 2023, Marriott revealed the details of its new basic extended stay brand. This came a couple of weeks after Hilton announced that it would launch Project H3, a new ”basic” extended stay brand. Marriott has now revealed the name of its newest hotel brand, so let’s recap everything we know about it.
Continue reading: StudioRes, Marriott’s New “Basic” Extended Stay Brand
Share your questions, experiences, and thoughts below.
The real issue I see with all of these brands is that every hotel owner that owns a Courtyard, Hilton Garden Inn, Residence Inn, Hyatt Place, etc in a market will open up one of these from the brands. They will get used to the low amenity model. When their Courtyard, Hilton Garden Inn, etc either needs refurbishment or their contract comes up for renewal, they will cry and moan about spending money on renovations and keeping up with brand standards. These lower cost brands tend to pull everyone down in terms of offerings.
This announcement as well as the recent announcement by Hilton comes down to the following:
1) It's clear that domestically the big developers and franchisees no longer want to build full-service branded hotels. For Marriott, this is probably partly a reflection that in many markets there are simply too many Marriotts, Westins, Sheratons, Deltas, Renaissances, etc. to justify yet another full-service property. In markets without an existing full-service hotel, it's simply too expensive to build and staff a full-service hotel. Developers and franchisees can make as much or more money with a limited-service hotel. Especially an extended-stay hotel with little to no amenities and servcies.
2) Let's also be clear that these new extended-stay brands from Hilton and Marriott are 100% sure to be partially or fully automated. I do not expect a staffed front desk, at least not 24/7. Costs will be significantly reduced by replacing the front desk with a kiosk (as Premier Inn has done in the UK), self-service vending machines and kiosks for drinks or food, and no housekeeping.
More of the same from a company that largely operates to sell these type of properties that are quick $$$ for Tony and Co., but mean absolutely nothing for the consumer. They have so many brands that they can’t even tell you the difference between them. Seriously.
Talk to a Marriott exec when they haven’t been given a cheat sheet of talking points from PR and ask them what the differences are between a Four Points and a Courtyard or a Spring Hill and a Residence Inn. They can’t. It’s laughable. I realize this blog, and most of its followers are more at the upscale/aspirational end of the spectrum, but the real estate scams being run with occupancy and things like amenities and parking with all these mid market brands are breathtaking to behold.
I get a kick as well out of the idea these will ever be $80 a night. Since the Starwood merger, Marriott price fixes according to market. I’ve been in places where the difference between a Fairfield Inn and full service Marriott or Sheraton is often little or nothing at all. Have you seen $500 rates at places like Fairfield (not St. Regis)? I have. It’s all really sickening and speaks to what the corporation really has become: a huge real estate scam.
This ain’t Bill Marriott’s company.
Isn’t the real shift here to much smaller extended stay rooms? Historically much larger spaces, these new studios will offer more units/sqf and will be very attractive to owners.
I agree that I've seen ridiculous nightly rates from Marriott at all brands in nearly all markets. It's kind of like the absurdly high airfares being charged by Delta for a domestic first-class and international business-class that is significantly below the standard offered by competing airlines.
The reality is that Marriott has to drive higher nightly room rates since Marriott manages less than 30% of all properties across all brands. The only source of revenue for Marriott at properties it doesn't manage are franchisee/license fees and a percentage of nightly revenue.
And Marriott has to create new brands to continue growing and get more money. In many markets, Marriott is tapped out as owners or developers don't want to build the third Courtyard, the fifth Fairfield or the third Residence Inn in a given market.
I get that the big hotel companies need a lot of brands to justify growth. But what happens to the old brands? I don’t see anyone really building and opening new Alofts anymore. That brand seems to be just existing. I stayed at the Aloft in Wichita last year. It felt like walking into a W property circa 2006. It was a hip concept back then, but felt very dated and just completely out of place in Kansas. What about Four Points? Is anyone really building and opening new Four Points properties? I actually think that Four Points is a better brand than Courtyard but Courtyard seems to be what developers want to build when they want something more than a Fairfield but something less than a more upscale brand. At some point, Marriott has to discontinue old brands and convert existing properties to something else. I’ve noticed that a tremendous number of 1970s and 1980s Marriotts have become Delta in recent years.
New Product --> New Idea to fool owners and investors with --> Making Profit --> Higher Stock Price --> Execs all getting rewarded.
Do Residence Inns still have an evening Happy Hour? I don't think I've seen it return to a single property. I'm surprised Marriott is still including that in the brand description.
I don't think Residence Inn ever had this, as the brand concept doesn't have a bar. Springhill Suites typically have a bar or sell alcohol in the market. Some of them have receptions/happy hours.
They definitely used to (haven't stayed at one post-pandemic), though it was often limited to Monday through Wednesday nights only - literally less than half the week. There was no formal bar, but they would serve beer and wine (out of pitchers if I recall, though that might vary by location), plus a light food offering, in the breakfast area.
Back in ~2008, one that my family and I stayed at in Florida even did fresh-cooked burgers out by the pool, included as part of the evening reception! Only time I've ever seen anything like that, but man, they were good.
(Incidentally, I've only ever seen one SpringHill Suites with a bar on-site - and one Residence Inn with one, too.)
Maybe that property couldn't get an alcohol license, but every Springhill that I've seen has had either a full bar or beer and wine in the pantry. The bar at the SpringHill in Bozeman, Montana is actually quite nice. Better than the AC in downtown.
Agreed , there seems to be no plan to refresh the old brands or grow them. Some of the older brands certainly seem to be languishing, especially from the Starwood side - Four Points and Aloft are prime examples. Westins are also often quite outdated these days, and so are most Sheratons that haven't been converted to Grand Sheratons.
There are at least some new Westins and new or newly renovated Sheratons (like the Crowne Plaza-turned-Sheraton in Grand Rapids, Michigan). I don't see many new or conversation Aloft, Element and Four Points properties. I don't know if I remember the last time I heard about a new Element opening. The funny thing is Aloft and Element actually have LOWER costs than other Marriott brands because they aren't required to provide the same elite status benefits at those properties. I actually like Element because Element were designed as the limited-service version of Westin. They always had Westin bedding. By contrast, the legacy Marriott limited-service brands like Fairfield, Courtyard, and Residence Inn all have the same cheap polyester-cotton blended bedding.
I remember reading the self-aggrandizing Bill Marriott biography in the 90s and pricing higher than competitors and not discounting has always been their strategy. It’s based on people assuming Marriott always has a better product. If more people put their money where their mouth is and tried a Best Western or Comfort Inn now and then–which can be a great value if you choose carefully–they wouldn’t have the same pricing power.
Could easily be converted to studio apartments in the future too, but converting a traditional hotel to an apartment is a major project
Marriott discontinued /sunsetted the evening social (RI Mix). The main idea was to get property management and on property sales to generate sales leads from guests enjoying their light evening snacks. In the end, many guests saw it as "free dinner" which was not the purpose so it became too expensive and owners complained.
It was also very labor intensive. Management are expected to come in to observe the breakfast line from time to time at 6:00am and could not leave because they are expected to be at the mix which often ended 9:30pm .It was really hard hiring dedicated staff to work only the mix (4 hour job). Many hotels ended up using the front desk which resulted in the desk being unmanned ,less guest services during the mix hours.
Honestly like this. I frequently travel for leisure alone and don’t spend a lot of time on property. The reason why I pick Marriott and Hilton over budget chains like Wyndham is brand consistency between properties. I want something that more adult feeling than a Hampton Inn that’s targeted more to parents with children and don’t need all the amenities of a 4 pts like breakfast or a restaurant
This is tapping into the cities using hotels as third party homeless shelters trend.
kind of like a direct-to-airbnb condo conversion. for food, guests can use seamless/uber eats; gym, classpass; spa services, zeel; conference rooms, wework? The great unbundling has moved on from airplane tickets to hotels
Nice, for a prison cell…
It also has to be noted that the highest profit margins are made in lowest end accommodation.
I remember a pitch in a Gulf State about workers accommodation, and the IRR was eye-watering high. But investment was available to locals only.
Agree with the comments about justifying their investments and would also say that it can easily be converted to apartments if the hotel business model fails, so the original investor could recoop their investment
With housing costs out of sight, living full-time in a long term stay hotel is a great alternative. No utility cost, no furnishings cost, housekeeping once a week, etc. I live in a long term stay hotel - I've been a Marriott "Bonvoy" member since it started and would rather be in a Residence Inn than where I am BUT they are all full for the next several months with people LIVING in them. This long term stay concept used to be for travelers needing a place for 1 - 2 weeks or relocating. Now, its a new way to live and its GREAT and can be more affordable.