Extended-Stay Hotels vs. Traditional Hotels
Many of us view the hospitality industry, specifically hotels, as a place to relax for a couple of days during a vacation or a business trip. However, did you know that extended-stay hotels outperform the rest of the hospitality industry? Many that have never given extended-stay hotels much thought find this extremely surprising, assuming that weekend stays in Las Vegas and the Caribbean are more profitable.
There are a variety of reasons why hoteliers may choose to put themselves in the extended-stay hotel industry as opposed to the transient hotel business. These extended-stay specific hotels not only have more cash flow, but the cash flow is also more stable. There are individuals who will stay a week, a month, six months, and even multiple years, meaning these hotels can almost count on always being profitable and remaining stable in the market despite fluctuating conditions. These extended-stay hotels often find that guests call their rooms their home, and only leave for temporary assignments or vacations. These guests are more profitable than typical guests, as they are calling your place home.
When developing these unique types of hotels, it is important to view the development as more of an apartment model as opposed to a hotel model. These developments come with significantly less risks, making it a much more profitable endeavor than traditional hotels.
One of the most important aspects of running an extended-stay hotel is advertising your property in a way that makes it a place someone would like to call home for an extended period of time. If you are able to market your company in the light intended, you will find years of success in a stable industry.
Contact Parkwest General Contractors for all of your commercial and hospitality remodeling construction needs. We can guide you in your construction projects and make sure that your hotel is secure in the Western U.S.
