ATLANTA — The extended-stay hotel market looks a little different these days.
There's more competition at the table and a few trends to keep an eye on, said Ryan Rivett, president and CEO of My Place Hotels of America.
“Extended stay has grown so much in the last several years that any time the supply grows and the product within that network of supply changes, it changes how the demand moves and what opportunities are out there," Rivett said in a video interview during a break at the recent Hunter Hotel Investment Conference.
The evolution of extended-stay hotels could work to the advantage of Aberdeen, South Dakota-based My Place. Rivett said My Place has been a typical extended-stay hotel company, focusing on a dynamic demand matrix and shorter length of stay. And the market doesn't seem to be trending toward longer stays.
"I think today the extended-stay market is much more bifurcated than it has been before," he said. "Sure, you have people who are looking to stay a month or more, but also the demand for extended-stay hotels for shorter-term stays has grown, so it’s changing the way that the supply in markets addresses the demand. We’ve been watching it closely, so I think we’re going to continue to see that."
Guests want the amenities of an extended-stay hotel without actually needing a longer booking, he said. One thing Rivett is seeing changing is when travelers are booking their stays.
“People are making plans a little bit earlier, little bit further ahead than they have been in the past few years. That to us means stability, and I think that’s really valuable," Rivett said, pointing to shorter booking windows in 2020 through 2022.
"It also might be the case for a more conservative traveler," he continued. "So, we’re watching that closely to see how competitive we can keep our rates in different markets based on maybe a growing conservativeness among travelers."
Rivett says he makes sure My Place can stay competitive — both in terms of attracting guests and potential franchisees.
When it comes to what he expects for growth and expansion, Rivett said he's looking at parts in the U.S. where My Place has less saturation, including southern states and around the Sun Belt — two areas showing stable growth compared to chaos around the country.
But Rivett said My Place is looking at "anywhere our franchisees take us."
"We’ve made it a point to not try to sell or push markets on developers but to look at what their current portfolio looks like, what their development portfolios are, and to follow them into the places that are best," he said.
Rivett said My Place has evolved internally, which has been key to the company's success with existing and new franchisees.
"Our approach has really been to take what we’re doing well and apply that and help franchisees apply that," he said. "I think we’ve been more of an open book on our successes and leveraging that into those relationships to help the franchise developers grow more quickly."
To hear more about Rivett's thoughts on the extended-stay market and My Place's growth, watch the video embedded above.