ABERDEEN, SD—My Place Hotels of America has launched Trend Hotels & Suites, a collection of upper-midscale and upscale select-service and extended-stay hotels. This is the second brand to come from the parent organization of My Place Hotels, an all-new-construction extended-stay chain with 56 locations across 27 states.
“Since we launched the franchise system in 2014, many questions were asked regarding what the next growth vehicle may be for My Place Hotels, a distinct, new-construction, niche product,” Ryan Rivett, president/CEO, My Place Hotels of America, told Hotel Business. “My perception has since been that there is this opportunity for an upper-midscale conversion brand, and something that represented an opportunity for hoteliers to switch their franchise affiliation without it being a downgrade. In recent times, that opportunity to expand is relevant as ever, which is why we have proceeded to launch this new franchise option at this time.”
Inspired by the needs of today’s hoteliers, Trend welcomes unique select-service and all-suite hotels to lower their relevant franchising costs while building upon the success of its predecessor, according to the company. With a steady aim to efficiently convert and support stabilized hotel assets, Trend will primarily lend itself to hoteliers who are currently reassessing their franchise affiliation in search of a more balanced relationship of support and contribution.
Rivett said that the brand, which could open its first location in mid-July or early August, offers franchisees something different than other companies do. “As franchisees of today’s major brands, we generally expect to be a number,” he said. “Whether we’re one of many in this territory, group, or region, we generally expect to be addressed as such. Our approach is a real partnership. We’ll do the underwriting, market analysis and maintain a collaborative effort throughout our deployment of revenue management, sales and marketing strategies. At the end of the day, Trend allows the franchisee more creativity and more autonomy in addressing what matters to them.”
Key elements of Trend’s franchise offer include the following:
- 5% franchise royalty fee (gross room revenue)
- Franchises acquired before September 1, 2020, will incorporate a provision for royalties to be zero for 30 calendar days after the effective conversion date before graduating to 5%.
- Immediate deployment of resources and departments from the My Place Hotels of America upon signing
- My Place Hotels of America will tailor the Trend training experience for teams in transition to the brand, while supporting further staff development through ongoing education initiatives.
Trend differs from the My Place Hotels brand in a number of ways. “Aside from My Place Hotels being an all-new-construction, midscale extended-stay hotel brand, we’re incorporating a more diverse group of hotel product,” said Rivett. “Trend Hotels & Suites addresses the younger and middle-aged hotel products, allowing their franchise affiliation to be more valuable at mid-life. As opposed to the increased franchise-related costs that many of these hotels have on their economic horizon, a Trend conversion will allow them the flexibility to work off their strengths in market-share and loyalty while adding value.”
He added, “I expect it to have a higher quality standard than other conversion brands. We will generally maintain a younger collection of hotel assets, which may be prohibitive to our pace of growth relative to the conversion rate of major hotel brands, but it will represent a higher brand standard of quality, consistency and integrity from the onset.”
With an immense collection of resources developed by the My Place parent organization, the brand’s development plugs directly into this collection to provide immense support and guidance for its franchisees, making for efficient conversions and operational satisfaction in migration to Trend, according to the company.
The current pandemic has not affected the launch of the brand—in fact, it may help it. “As we’ve seen with the success of My Place Hotels, a well-timed idea can be incredibly valuable,” said Rivett. “We always look for the right time to introduce a new idea, no matter how long we’ve spent developing it. The state of the industry pre-COVID-19, in the midst of COVID-19, and the expectations for the industry post-COVID-19 have all presented a set of circumstances that are also catalysts for the development of Trend Hotels & Suites. Among these current circumstances is the change in contribution from major brands in tandem with the general willingness of hoteliers to try something new.”
Rivett stressed to Hotel Business that the new brand will not detract from the original. “I think it’s worth emphasizing that today’s launch is an expansion of My Place Hotels of America, not a transition or a shift in focus,” he said. “I fully expect this new offering to create additional value for all participants as we continue to drive the growth of two dynamic brands with nearly infinite possibilities.”
My Place Launches Trend Hotels & Suites – Gregg Wallis appeared first on Hotel Business | Hotel Business – The leading source of hospitality news for owners, developers, designers, brokers, brands, management companies, lenders, REITs & asset managers.
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