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.
In this post:
Marriott’s new extended stay brand called StudioRes
Up until now, Marriott’s new extended stay brand has been referred to as Project MidX Studios, though we’ve known that this was just a temporary working name, and that the official name would be revealed at some point.
Marriott has now announced that its new hotel brand will be named StudioRes. There’s not much explanation yet for the name. Maybe it’ll grown on me, but that seems like a really odd name for a hotel brand. To me it sounds more like a hotel reservations system than a hotel brand.
Details of new Marriott extended stay hotel brand
StudioRes is Marriott’s 32nd hotel brand. This is expected to be a basic extended stay hotel brand, with limited service and amenities. The first hotel is expected to open in late 2024.
Marriott intends this brand specifically for guests looking to stay 20+ nights, who are seeking to pay around $80 per night, depending on the market. The brand will deliver a “light-touch, digital first operating model,” with pay-and-go retail, check-in with Marriott Mobile Key, and more. The brand will also participate in Marriott Bonvoy, though only time will tell what that looks like (for example, will you earn one elite night for every night stayed, or…?).
StudioRes properties will feature rooms with one or two queen beds, in-room kitchens, and closet space. Properties will also have a gym and laundry facilities, and will be pet-friendly.
Here’s how Marriott CEO Anthony Capuano described the new brand when it was first announced:
“Marriott has long believed in having the right accommodations in compelling destinations at the right price point. Whether our guests are traveling for business, leisure or a mix of both, our portfolio of 31 brands offers something for everyone. As consumers look for new, flexible accommodation solutions, we are thrilled to announce our plans to launch an affordable midscale extended-stay offering to meet the needs of guests seeking long-term comforts at a moderate price point.”
For context, Marriott already has four extended stay hotel brands, including:
- Residence Inn by Marriott, where all rooms are suites and feature kitchens, with complimentary breakfast and an evening happy hour
- TownePlace Suites by Marriott, where rooms range from studios to two bedroom suites, and feature kitchens; Marriott describes this brand as being for “the Upbeat Realistic traveler” (which I find to be a pretty funny description)
- Element by Westin, where rooms range from studios to one bedrooms suites and feature kitchens, with complimentary breakfast and an evening happy hour; this is typically higher end than Residence Inn and TownePlace Suites
- Marriott Executive Apartments, which is the closest thing in Marriott’s hotel portfolio to an apartment-style accommodation
The new StudioRes brand seems to be the lowest end of all of these brands.
What Marriott’s new hotel brand means for owners
It’s worth keeping in mind that new hotel brands are really created for hotel owners, and us guests are just the product. So what is Marriott promising investors about the new StudioRes concept?
StudioRes will have a focus on the United States and Canada, with the most affordable cost-per-room product for developers, intended to accelerate speed-to-market, with a low cost to build. For a property with 124 keys, the model targets a build cost of $13-14 million, with around 54,000 square feet of total building area. The brand will also have a light operational cost model for owners and franchisees, meaning you can expect these hotels to not have many amenities.
Here’s how Marriott CFO Leeny Oberg described the new brand for owners when it was first announced:
“With Project MidX Studios, we are focused on enhancing the breadth of our portfolio through the creation of a product specially designed for the affordable midscale extended-stay tier—from the physical product to the operating model. The team created Project MidX Studios to reach both new customers and new markets. We are excited to join forces with Concord Hospitality and Whitman Peterson on our first three projects and are in discussions with owners for more than 250 new development opportunities under this brand.”
Why hotel groups are focusing on extended stay brands
We’ve now seen Hyatt, Hilton, and Marriott, all announce new extended stay brands in a short period of time. Why the sudden focus on these properties?
Well, for one, most major global hotel groups aren’t very original or creative. They copy one another on just about everything, and this is a clear example of that. If one company launches a new extended stay brand, they all feel they need to launch one.
But as we emerge from the pandemic, there’s a bigger reason we’re seeing a focus on lower end extended stay properties:
- These extended stay brands are among the least labor intensive hotel concepts out there, so they don’t have the same labor issues we’ve seen at so many other hotels in recent years
- These extended stay brands are much easier to develop; they require smaller investments, it’s easier to find vacant real estate for them (often just off a highway), and they can be built pretty quickly; this is a bit easier than trying to open a new Ritz-Carlton in the Maldives in terms of cost, risk, and lead time
- With economic uncertainty, it’s anyone’s guess how high-end leisure demand will evolve over the coming years; it’s as strong as it has ever been right now, but that might not last
- “Traditional” business travel hasn’t recovered to pre-pandemic levels, though extended stay brands are often targeting different kinds of business travelers, who are less impacted by these kinds of fluctuations due to the “essential” nature of their work
Bottom line
Marriott has revealed the details of its new budget extended stay brand, which is officially being named StudioRes. This brand is specifically intended for those staying 20+ nights, and rates are expected to be an average of somewhere around $80 per night.
Expect these properties to have very basic amenities and low staffing, so they’ll almost be like a hybrid of a hotel and an apartment building.
What do you make of Marriott’s plans for a new extended stay brand?
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...
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.
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
"Res" means cattle in Spanish. Make of that what you will.
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.
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
"Upbeat Realistic" is an amazing piece of marketingspeak
Full kitchen but stumpy little useless proto-sofa? That's brilliant. Bonvoy!
This is tapping into the cities using hotels as third party homeless shelters trend.
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
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...
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.
Could easily be converted to studio apartments in the future too, but converting a traditional hotel to an apartment is a major project
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...
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.
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...
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.
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...
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.
And let's not start on Luxury Collection, St. Regis, Element etc etc……
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.
More of the same from a company that largely operates to sell these type of properties that are quick $$$ for Tony and Co., but mean absolutely nothing for the consumer. They have so many brands that they can’t even tell you the difference between them. Seriously.
Talk to a Marriott exec when they haven’t been given a cheat sheet of talking points from PR and ask them what the differences are between a Four...
More of the same from a company that largely operates to sell these type of properties that are quick $$$ 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.
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...
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.
New Product --> New Idea to fool owners and investors with --> Making Profit --> Higher Stock Price --> Execs all getting rewarded.
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.
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...
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.
Ideal as refugee housing units.
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...
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.