Julie Arrowsmith is confident the economy hotel segment will recover demand this year.
The president and CEO of G6 Hospitality said she’s noticing several factors that support better times for the economy segment in 2024, including continued demand for leisure travel at all price points and a bullish outlook for the extended-stay sector.
G6 franchises more than 1,400 Motel 6 and Studio 6 hotels in the U.S. and Canada, and net unit growth continues to be a priority. That means turning single-unit owners into multi-unit owners, Arrowsmith told Hotel News Now in a video interview at the Americas Lodging Investment Summit.
Franchise owners “are looking for more opportunity. We get a lot of feedback that they would like to grow with us,” she said.
Arrowsmith also said the company’s franchise owners are eager to attract more business travelers, which will help grow demand at a higher price point, even for economy guests.
“There are decisions you make as an owner to take on business that, as we get further away from COVID, I think we can look at differently,” she said, citing business travelers in particular.
G6 has been investing in its infrastructure in recent years to help franchisees identify new locations, offer more marketing support and fortify its leadership team to lend proactive support.
Hotel renovations have also been a priority for the company, Arrowsmith said. Renovations took a chunk of rooms out of inventory last year, which this year will be poised to recover business with a fresh, new product.
Above all, Arrowsmith is passionate about the economy segment: “It’s a segment that meets a need,” she said. “I’m excited about the ongoing investments we’re making into our brand platform.”
She spoke about initiatives the company is launching to gather more data on walk-in guests that meet the typical profile of an interstate hotel.
“Are we meeting their needs and how do they come to us?” she said. “I think there’s a lot we can do to better understand our guest … and that will guide and inform some of our investments.”
For more from Arrowsmith, watch the video above.