November 27, 2022

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ESA’s Greg Juceam on New Select Suites Brand

Greg Juceam
Photo Credit rating: Tony Powell

At The Lodging Convention 2022, LODGING had the possibility to sit down with Extended Remain America (ESA) President and CEO, Greg Juceam, to understand a lot more about ESA’s recently launched Select Suites model, whose appeal to extra benefit-conscious guests may well be viewed as a counterpoint to the Leading Suites manufacturer it released just a 12 months in the past at a better rate stage. Extended Remain The united states Pick out Suites released with practically 100 houses in 30 distinctive states. Juceam reported, “We’re generally launching at scale these 100 houses aren’t just signed, they are open, prepared for business enterprise, and section of the procedure.”

What’s the tale driving this model?

When our 27-12 months-old manufacturer started out, we thought there was this solitary monolithic prolonged-keep section. Whilst our core brand name is very well recognized and has been incredibly successful, more than time, we’ve gotten to know the market and the consumers superior. We have discovered that prolonged-continue to be can be super luxury all the way down to super financial system. In recognition of those differences, a little less than a yr back, we released a extra upscale extended-remain brand—Extended Stay The usa Premier Suites—because we experienced recognized a sizeable quantity of possibility with that straight away adjacent significantly less-cost-delicate consumer. With this third addition to our manufacturer segmentation, we’re just actually tapping into a lot more markets where by our manufacturer historically was not able to go, at a price tag level marginally under our main supplying from an ADR standpoint.

The addition of the Prolonged Remain America Choose Suites model to our portfolio will permit our attendees and franchisees to select from a few distinct manufacturers at a few diverse price tag details. For franchisees, the new manufacturer has a compelling worth proposition and financial effectiveness.

What are the differentiators that set ESA inns aside from other folks in the phase?

Initially, unlike greater platforms actively playing in the extended-stay room, with brands that may possibly represent a one-digit percentage of overall distribution and revenue, we are 100 percent concentrated on serving the wants of company remaining 7 or additional nights. All ESA brand names have comprehensive-assistance kitchens with total-dimensions fridges and cooktops. It’s unlikely that the huge companies dabbling in the space would be uniquely tailoring their offering—whether it is the reservation delivery system or even how they serve attendees —for those staying seven or additional nights.

What are the unique attributes that permit a lower selling price stage for customers and a affordable ROI for franchisees?

Initially, this is a conversion brand with an operating design that enables for added labor savings. Contrary to our other qualities, which are open 24/7, it will shut down at night time and open up in the early morning, like other attributes in this section. We’re also conserving costs by not delivering breakfast.

Can you describe the launch as it is occurring and its impact on homeowners and franchisors?

We are equipped to kick this off with 100 accommodations correct from the start—basically launching at scale—because we obtained about 120 hotels in February of roughly 120 accommodations throughout 30 states. Though we individual most of them, they are not nonetheless managed or branded by us that will have to transpire gradually. On the other hand, compared with brands that are mainly franchisers but may perhaps own or handle some inns, we are in all 3 places: we own, handle, and franchise, and, with this start of 100 lodges of our very own, we are demonstrating franchisees that we as franchisors have pores and skin in the sport, that we have to eat our possess cooking, so to discuss. They see that if we create a manufacturer conventional, we have to reside by the requirements we place in position. This is one thing that instills confidence in the long term of the manufacturer, some thing I regard as a major differentiator.