January 15, 2012 - WEBWIRE
Urban Furnished Suites celebrates its first year of operation
Mississauga, Ontario – Urban Furnished Suites had a fantastic first year of operation.
According to Naveeda Rana, the President and CEO of Urban Furnished Suites, the
company’s top priority was “Customer Satisfaction”. During the year under review, the
company provided short term furnished apartments to hundreds of its valued guests in
Toronto and Mississauga. “It takes hands to build a house, but only hearts can build a
home, we have put our hearts and souls in Urban Furnished Suites” said Naveeda Rana.
Urban Furnished Suites provides fully furnished apartments in Toronto and Mississauga for
weekly and monthly rentals. Facilities include wireless high speed internet, maid service,
free local calls, underground parking, flat screen TV with cable, in-suite laundry, swimming
pool and gym.
November 25, 2011 - The Apartment Service
Global Serviced Apartments Industry Report 2011-12
The recently published Global Serviced Apartments Industry Report 2011-12 has brought to
light some interesting figures about the market share of serviced apartments in the
various global regions. In Australia serviced apartments form 25% of the total available
temporary accommodation stock, whilst in Europe this figure reaches 2%.
The Highland Group, an authoritative voice on temporary lodging research since 1989 and
publishers of the Extended Stay Lodging Market reports since 1999 and the Corporate
Housing Report since 2000 has provided us with the figures for the United States and
Canada. 7% of total lodging inventory can be appointed to extended stay/corporate housing
in the largest global market for temporary accommodation units.
The Apartment Service has worked together with The Highland Group since the publication
of the first Global Report on the Serviced Apartments Industry in 2008 and for this third
report, Mark Skinner, a partner in the company has provided us with a comprehensive
regional overview of the Extended Stay and Corporate Housing markets in the USA and
Canada.
The above figures of market share for the serviced apartment/extended stay and
corporate housing sector show a great potential of growth in all global regions. And the
sector can be optimistic about the future, because of much higher occupancies recorded as
in traditional hotels.
August 29, 2011 - Canada Extended Stay
Corporate Housing or Extended Stay Hotel?
The debate continues. There continues to be tremendous growth in both of these sectors
of the hospitality industry. Corporate Housing is typically a fully furnished apartment or
condo with a fully equipped kitchen, separate bedroom(s) and in suite laundry. An
Extended Stay Hotel is typically a transient hotel environment with larger suites including a
small kitchenette with amenities such as internet and breakfast included in the rate.
Today’s business traveler has many more options to choose from compared to only a few
years ago. These travelers are also benefiting from better rates, complimentary services
and top notch locations.
Corporate Housing has traditionally had the upper hand when it came to pricing. Lower
overhead meant less costs to be passed onto the customer. Today, Extended Stay Hotels
are reducing their costs in order to be more cost competitive. Many are getting rid of the
full service restaurants, 24 hr security, room service, overnight front desk staff, etc. They
are still offering some services to differentiate themselves including free breakfast,
newspaper delivery and concierge services to sway travelers away from Corporate Housing.
Corporate Housing still has an edge on most Extended Stay Hotels from a cost standpoint
due to the money that is saved on in suite laundry and cooking meals in a fully equipped
kitchen.
When it comes to services, many Corporate Housing companies struggle to compete with
Extended Stay Hotels due to not having staff on the premises. Response time is generally
longer for Corporate Housing personnel who usually have to travel to the apartment or send
a trade. Other services such as complimentary breakfast, newspaper delivery and a
concierge are typically much easier and less costly for an Extended Stay Hotel to coordinate.
Location may be the most important factor for most business travelers. It is very
convenient to be close to your place of business in that a car rental can be avoided. Good
public transportation can make up for this, however, no one wants to be on the bus or
subway for too long. Extended Stay Hotels were first being built up in more suburban
locations due to the scarcity of land and the high cost of real estate in most major cities in
Canada and the US. This usually gave Corporate Housing the edge in terms of location due
to the large number of apartment buildings or condominiums in central urban locations.
Corporate Housing companies can choose where to set up an apartment so there is lots of
flexibility with regards to location. In the last couple years, many Extended Stay Hotel
brands have figured out ways to open up locations in central urban locations by either
converting an existing hotel to an Extended Stay or by purchasing an old apartment
building and converting it to an Extended Stay format. Corporate Housing probably has the
edge with location, although Extended Stay Hotels are not far being in some major cities.
So which was is the preferred choice? It is hard to say. It seems to be a tight race right
now and it may be a few years before one of the two emerges as a clear leader.
February 4, 2011 - New York Times
Extended-Stay Hotels Become a Popular Housing Option
TWO years ago when Joan Coffino decided to sell the three-bedroom Plainview home where
she had lived for 45 years, her daughter, Roni Ashton, took her shopping for an apartment.
She was not impressed by what she saw. Ms. Ashton also took her to see a retiree living
complex. “When I went in I turned green,” Ms. Coffino said. “It was very depressing.”
What struck her fancy instead was an extended-stay hotel, the Homewood Suites by Hilton
in Plainview, where Ms. Ashton and her husband, Billy, had lived briefly while waiting for
their new condominium to be completed two and a half years ago.
“The minute I saw it, I loved it,” said Ms. Coffino, who is 83 and widowed, citing the mix
of families and young children. “I feel very safe here. You can’t feel lonely in a place like
this.”
Her furnished one-bedroom suite has two televisions and a well-equipped kitchen. “It
makes a very nice place to live.”
Moving was easy: she brought only her cat and her clothing. Her $3,000 monthly bill
includes a daily breakfast of dishes like eggs, Belgian waffles and oatmeal, as well as
dinner Monday through Thursday. Housekeepers vacuum, clean the bathroom, change the
sheets and supply fresh towels daily. Local phone calls are free. “There is nothing I have to
pay except the rent,” Ms. Coffino said. “I only worry about my cat food.”
Kathleen M. Petrus, the director of sales and marketing for Hilton’s Homewood Suites,
said a scarcity of apartments and short-term rentals on the Island had made extended-stay
hotels a popular option, particularly for people relocating who want to get to know the
Island before they choose a community.
Guests at extended-stay hotels pay as they go, unlike those at apartment complexes, who
are usually required to sign a minimum six-month lease and pay a security deposit.
Homewood’s amenities include an indoor pool, a hot tub, a fitness center and a lobby
lounge with a commanding stone fireplace.
While rates might be seen as steep, “you pay for the luxury of not having to make a
commitment,” Ms. Petrus said. In addition, guests don’t have to pay for furniture, utilities
or cable service.
Over the last decade more than 10 new hotels — many with options for longer stays — and
extended-stay lodgings have been built on Long Island, including the 116-room Viana Hotel
and Spa in Westbury, which opened in December. The Viana has four long-stay king-size
rooms and eight one-bedroom suites, four with kitchenettes. A Hyatt Place in Garden City
and a SpringHill Suites by Marriott in Bellport also opened last year. Two years ago, a 118-
suite extended-stay TownePlace Suites by Marriott with full kitchens and housekeeping
opened in Farmingdale. Recently, an 85-room Hilton Home2 Suites extended-stay hotel was
approved for Farmingdale village.
A fire during the renovation of their Syosset home on Jan. 9 sent Winston Wang and his
wife, Mingdi Yang, and their two sons to a one-bedroom suite at the Viana. They plan to be
there for at least another month.
“We are looking to ideally rent a house we like,” Mr. Wang said, “and if not, we will have
to stay at a hotel.” He chose the Viana, which has an indoor lap pool, a gym, a spa and a
game room with a billiards table and an Xbox video game player, because it was “more
cozy and friendly.” He expects that the cost will be covered by insurance.
While the $215-per-night rate doesn’t include breakfast, every morning Mr. Wang calls in
“two buffet-type orders and they bring enough for four people.” Alan Mindel, an owner of
the hotel, provided him with shirts to replace those lost in the fire.
At the 145-suite Inn at Fox Hollow, built in 2002, Franklin Manchester, the general
manager, said that during the summer 40 to 45 suites are occupied by “snowbird guests”
who sold their North Shore homes to pursue Florida living “but return year after year to see
their friends and family members.” Other long-term guests are remodeling or building new
homes, sometimes staying for several years.
Since moving from Roslyn more than a dozen years ago, Florence Launer, 80, and her
partner, Walter Berkower, 82, have spent winters at their home in Boca Raton, Fla.
Summers they share a one-bedroom suite at the Inn at Fox Hollow at $200 a night,
relishing the daily breakfast buffets, five weekly dinners and proximity to her children in
Muttontown.
“Having another home is another responsibility,” Ms. Launer said. “They cater to your
every need. It is our home in New York without the problems.”
The granddaddy of the Island’s extended-stay hotels is the Marriott Residence Inn, a 21-
year-old garden-apartment-style complex in Plainview.
The Marriott, which was renovated in 2006, has 112 studios; 48 one-bedroom units; 10
two-bedroom units; indoor and outdoor pools; a movie theater; a lounge; a cafe; a fitness
center; a putting green; and a basketball court.
Marjorie Monty, the Residence Inn’s general manager, said the business had become
increasingly competitive. When the Homewood Suites started offering free dinners four
nights a week in addition to breakfast, the Residence Inn followed suit.
Among the long-term guests at the Residence Inn are fire victims, homeowners doing
renovations, the newly divorced, executives and corporate trainees, home seekers — and a
couple who met at the inn, married and have lived there for six years. Buses pick up
schoolchildren. Occupancy was 88 percent last year. Rates for 30 days or more run from
$129 a night, for a studio, to $319 a night for a two-bedroom two-and-a-half-bath
“presidential” suite with a living room and full kitchen — or $116,435 for a year.
“People don’t have to worry about furnishing an apartment,” Ms. Monty said. In addition
to the other amenities, a masseuse and a personal trainer are on call. “It makes life
easier.”
October 12, 2010 - Winnipeg Free Press
Making it easier to get a room -
Hotel market expands by two new properties
John Owens and Fred Hrehirchuk are optimistic the upcoming extended-stay MainStay
Suites Hotel will be popular.
Move over, Leo Ledohowski.
There are new Winnipeg hoteliers moving in to claim their share of a larger local hotel
market.
Make no mistake, Canad Inns, the company Ledohowski founded and remains president
and chairman of, continues to be the largest hotel chain in Manitoba.
For the past decade, Canad Inns seemed to be responsible for most of the new properties
(or conversions) coming onto the market. But that's no longer the case.
Two new hotels near the airport and Polo Park, which are in varying stages of completion,
are being developed by a couple of smaller operators. Both of them have been active in the
Winnipeg and southern Manitoba scene for many years with solid financial backing.
John Owens, who owns the Best Western Pembina Inns & Suites, is building the 100-room
MainStay Suites extended-stay hotel on King Edward Street south of Sargent Avenue,
scheduled to open next month.
Meantime, Mike Sapozhnik who owns the Quality Inn on Pembina Highway, the Dakota
Hotel and the Howard Johnson Express Inn on Portage Avenue near the Perimeter Highway,
is building a 126-room Fairfield Inn & Suites by Marriott on Ellice Avenue east of Empress
Street, which is scheduled to open next June.
The $12-million MainStay and $18-million Marriott are expensive projects for the
developers, but both say they believe the market can bear additional properties.
"I think there is still room for more hotels in the airport region," Owens said.
For his part, Sapozhnik is so confident that he plans to eventually build a second hotel
beside the Marriott, which will eventually share the swimming pool/waterslide that will be
part of the Marriott development.
And while Canad Inns became king of the suburban nightclub/lounge scene and built a mini-
empire around that success, these two new hotels will both be limited service -- strictly a
"heads and beds" business.
Both Owens and Sapozhnik are searching for restaurant developers to build on their
respective hotel properties on land they have assembled specifically for a third-party
restaurant.
Owens has built and sold Super 8 Motels in Brandon and Portage and has also been in the
restaurant business, which his family continues to operate in Brandon with two A & W
locations.
He is approaching his first foray into a larger format with an international brand flag and
has the confidence gained from years of experience.
There are always risks when introducing new products, but this time that risk is
compounded by the fact that MainStay's extended-stay format is fairly new to the Winnipeg
market. (Each room will contain a stovetop, dishwater, full-sized refrigerator and kitchen
utensils with tiered housekeeping services and room rates depending on the length of stay.)
Place Louis Riel caters to that market, but Owens' new property will be only the first
MainStay Suites hotel in the country, part of the Choice hotel chain, one of the largest in
the world.
Owens said he expects half of its business will come from guests requiring extended-stay
accommodations.
"We sure hope the concept works," Owens said.
"We think it will be able to service a need that is not currently being met."
While there are additional costs involved, flying a brand name flag means taking
advantage of a larger marketing net.
"We are certainly going to rely on their expertise," Owens said.
Running a mini hotel chain means creating management systems that work and in his case,
Owens has brought in an equity partner/manager in the person of Fred Hrehirchuk, former
manager of the Viscount Gort Hotel and a former Canad Inns executive.
"I'm really excited about the property," Hrehirchuk said.
"The extended-stay concept has been very popular in the U.S."
Heather Soule, a Choice Hotels spokeswoman based at the company headquarters in
Washington, said the company is keen to introduce the brand into Canada.
"We believe Canada as a whole is short on lodgings and the kind of travelling and resource
industry that goes on is well-suited for the extended-stay concept."
For Sapozhnik, he'll be happy to get a piece of the family market.
"We did a professional market study," he said. "We're very confident."
One of the reasons he has such strength in his conviction is because Marriott Hotels has
such a loyal following among quality hotel patrons and his will be the first in Manitoba.
The reputation comes at least partly because Marriott demands attention to detail in the
design and construction of its franchised locations.
"It is not easy building a Marriott," Sapozhnik said. "They have very strict requirements.
Customer-safety considerations are extremely important."
Sapozhnik already owns 135 rooms in the city in his three existing hotels. In addition to
the 126 rooms he's bringing on the market with the Marriott, he's planning a 50-room
expansion for the Dakota and another 125-room property beside the Marriott.
"We think the Winnipeg market is very strong," he said.
Jim Baker, executive director of the Manitoba Hotel Association, said these new hotel
properties that have been built throughout the city may be a sign of the times.
"Today, travellers are looking for creature comfort and there is a willingness to pay for it,"
he said.
So while the cheap road-side motels are becoming extinct, Ledohowski and Canada Inns
built up a market in Winnipeg for more comfortable, but still affordable, lodgings.
Now, the next wave of operators are moving in to take advantage of Ledohowski's trail-
blazing.
Urban Furnished Suites celebrates its first year of operation
Mississauga, Ontario – Urban Furnished Suites had a fantastic first year of operation.
According to Naveeda Rana, the President and CEO of Urban Furnished Suites, the
company’s top priority was “Customer Satisfaction”. During the year under review, the
company provided short term furnished apartments to hundreds of its valued guests in
Toronto and Mississauga. “It takes hands to build a house, but only hearts can build a
home, we have put our hearts and souls in Urban Furnished Suites” said Naveeda Rana.
Urban Furnished Suites provides fully furnished apartments in Toronto and Mississauga for
weekly and monthly rentals. Facilities include wireless high speed internet, maid service,
free local calls, underground parking, flat screen TV with cable, in-suite laundry, swimming
pool and gym.
November 25, 2011 - The Apartment Service
Global Serviced Apartments Industry Report 2011-12
The recently published Global Serviced Apartments Industry Report 2011-12 has brought to
light some interesting figures about the market share of serviced apartments in the
various global regions. In Australia serviced apartments form 25% of the total available
temporary accommodation stock, whilst in Europe this figure reaches 2%.
The Highland Group, an authoritative voice on temporary lodging research since 1989 and
publishers of the Extended Stay Lodging Market reports since 1999 and the Corporate
Housing Report since 2000 has provided us with the figures for the United States and
Canada. 7% of total lodging inventory can be appointed to extended stay/corporate housing
in the largest global market for temporary accommodation units.
The Apartment Service has worked together with The Highland Group since the publication
of the first Global Report on the Serviced Apartments Industry in 2008 and for this third
report, Mark Skinner, a partner in the company has provided us with a comprehensive
regional overview of the Extended Stay and Corporate Housing markets in the USA and
Canada.
The above figures of market share for the serviced apartment/extended stay and
corporate housing sector show a great potential of growth in all global regions. And the
sector can be optimistic about the future, because of much higher occupancies recorded as
in traditional hotels.
August 29, 2011 - Canada Extended Stay
Corporate Housing or Extended Stay Hotel?
The debate continues. There continues to be tremendous growth in both of these sectors
of the hospitality industry. Corporate Housing is typically a fully furnished apartment or
condo with a fully equipped kitchen, separate bedroom(s) and in suite laundry. An
Extended Stay Hotel is typically a transient hotel environment with larger suites including a
small kitchenette with amenities such as internet and breakfast included in the rate.
Today’s business traveler has many more options to choose from compared to only a few
years ago. These travelers are also benefiting from better rates, complimentary services
and top notch locations.
Corporate Housing has traditionally had the upper hand when it came to pricing. Lower
overhead meant less costs to be passed onto the customer. Today, Extended Stay Hotels
are reducing their costs in order to be more cost competitive. Many are getting rid of the
full service restaurants, 24 hr security, room service, overnight front desk staff, etc. They
are still offering some services to differentiate themselves including free breakfast,
newspaper delivery and concierge services to sway travelers away from Corporate Housing.
Corporate Housing still has an edge on most Extended Stay Hotels from a cost standpoint
due to the money that is saved on in suite laundry and cooking meals in a fully equipped
kitchen.
When it comes to services, many Corporate Housing companies struggle to compete with
Extended Stay Hotels due to not having staff on the premises. Response time is generally
longer for Corporate Housing personnel who usually have to travel to the apartment or send
a trade. Other services such as complimentary breakfast, newspaper delivery and a
concierge are typically much easier and less costly for an Extended Stay Hotel to coordinate.
Location may be the most important factor for most business travelers. It is very
convenient to be close to your place of business in that a car rental can be avoided. Good
public transportation can make up for this, however, no one wants to be on the bus or
subway for too long. Extended Stay Hotels were first being built up in more suburban
locations due to the scarcity of land and the high cost of real estate in most major cities in
Canada and the US. This usually gave Corporate Housing the edge in terms of location due
to the large number of apartment buildings or condominiums in central urban locations.
Corporate Housing companies can choose where to set up an apartment so there is lots of
flexibility with regards to location. In the last couple years, many Extended Stay Hotel
brands have figured out ways to open up locations in central urban locations by either
converting an existing hotel to an Extended Stay or by purchasing an old apartment
building and converting it to an Extended Stay format. Corporate Housing probably has the
edge with location, although Extended Stay Hotels are not far being in some major cities.
So which was is the preferred choice? It is hard to say. It seems to be a tight race right
now and it may be a few years before one of the two emerges as a clear leader.
February 4, 2011 - New York Times
Extended-Stay Hotels Become a Popular Housing Option
TWO years ago when Joan Coffino decided to sell the three-bedroom Plainview home where
she had lived for 45 years, her daughter, Roni Ashton, took her shopping for an apartment.
She was not impressed by what she saw. Ms. Ashton also took her to see a retiree living
complex. “When I went in I turned green,” Ms. Coffino said. “It was very depressing.”
What struck her fancy instead was an extended-stay hotel, the Homewood Suites by Hilton
in Plainview, where Ms. Ashton and her husband, Billy, had lived briefly while waiting for
their new condominium to be completed two and a half years ago.
“The minute I saw it, I loved it,” said Ms. Coffino, who is 83 and widowed, citing the mix
of families and young children. “I feel very safe here. You can’t feel lonely in a place like
this.”
Her furnished one-bedroom suite has two televisions and a well-equipped kitchen. “It
makes a very nice place to live.”
Moving was easy: she brought only her cat and her clothing. Her $3,000 monthly bill
includes a daily breakfast of dishes like eggs, Belgian waffles and oatmeal, as well as
dinner Monday through Thursday. Housekeepers vacuum, clean the bathroom, change the
sheets and supply fresh towels daily. Local phone calls are free. “There is nothing I have to
pay except the rent,” Ms. Coffino said. “I only worry about my cat food.”
Kathleen M. Petrus, the director of sales and marketing for Hilton’s Homewood Suites,
said a scarcity of apartments and short-term rentals on the Island had made extended-stay
hotels a popular option, particularly for people relocating who want to get to know the
Island before they choose a community.
Guests at extended-stay hotels pay as they go, unlike those at apartment complexes, who
are usually required to sign a minimum six-month lease and pay a security deposit.
Homewood’s amenities include an indoor pool, a hot tub, a fitness center and a lobby
lounge with a commanding stone fireplace.
While rates might be seen as steep, “you pay for the luxury of not having to make a
commitment,” Ms. Petrus said. In addition, guests don’t have to pay for furniture, utilities
or cable service.
Over the last decade more than 10 new hotels — many with options for longer stays — and
extended-stay lodgings have been built on Long Island, including the 116-room Viana Hotel
and Spa in Westbury, which opened in December. The Viana has four long-stay king-size
rooms and eight one-bedroom suites, four with kitchenettes. A Hyatt Place in Garden City
and a SpringHill Suites by Marriott in Bellport also opened last year. Two years ago, a 118-
suite extended-stay TownePlace Suites by Marriott with full kitchens and housekeeping
opened in Farmingdale. Recently, an 85-room Hilton Home2 Suites extended-stay hotel was
approved for Farmingdale village.
A fire during the renovation of their Syosset home on Jan. 9 sent Winston Wang and his
wife, Mingdi Yang, and their two sons to a one-bedroom suite at the Viana. They plan to be
there for at least another month.
“We are looking to ideally rent a house we like,” Mr. Wang said, “and if not, we will have
to stay at a hotel.” He chose the Viana, which has an indoor lap pool, a gym, a spa and a
game room with a billiards table and an Xbox video game player, because it was “more
cozy and friendly.” He expects that the cost will be covered by insurance.
While the $215-per-night rate doesn’t include breakfast, every morning Mr. Wang calls in
“two buffet-type orders and they bring enough for four people.” Alan Mindel, an owner of
the hotel, provided him with shirts to replace those lost in the fire.
At the 145-suite Inn at Fox Hollow, built in 2002, Franklin Manchester, the general
manager, said that during the summer 40 to 45 suites are occupied by “snowbird guests”
who sold their North Shore homes to pursue Florida living “but return year after year to see
their friends and family members.” Other long-term guests are remodeling or building new
homes, sometimes staying for several years.
Since moving from Roslyn more than a dozen years ago, Florence Launer, 80, and her
partner, Walter Berkower, 82, have spent winters at their home in Boca Raton, Fla.
Summers they share a one-bedroom suite at the Inn at Fox Hollow at $200 a night,
relishing the daily breakfast buffets, five weekly dinners and proximity to her children in
Muttontown.
“Having another home is another responsibility,” Ms. Launer said. “They cater to your
every need. It is our home in New York without the problems.”
The granddaddy of the Island’s extended-stay hotels is the Marriott Residence Inn, a 21-
year-old garden-apartment-style complex in Plainview.
The Marriott, which was renovated in 2006, has 112 studios; 48 one-bedroom units; 10
two-bedroom units; indoor and outdoor pools; a movie theater; a lounge; a cafe; a fitness
center; a putting green; and a basketball court.
Marjorie Monty, the Residence Inn’s general manager, said the business had become
increasingly competitive. When the Homewood Suites started offering free dinners four
nights a week in addition to breakfast, the Residence Inn followed suit.
Among the long-term guests at the Residence Inn are fire victims, homeowners doing
renovations, the newly divorced, executives and corporate trainees, home seekers — and a
couple who met at the inn, married and have lived there for six years. Buses pick up
schoolchildren. Occupancy was 88 percent last year. Rates for 30 days or more run from
$129 a night, for a studio, to $319 a night for a two-bedroom two-and-a-half-bath
“presidential” suite with a living room and full kitchen — or $116,435 for a year.
“People don’t have to worry about furnishing an apartment,” Ms. Monty said. In addition
to the other amenities, a masseuse and a personal trainer are on call. “It makes life
easier.”
October 12, 2010 - Winnipeg Free Press
Making it easier to get a room -
Hotel market expands by two new properties
John Owens and Fred Hrehirchuk are optimistic the upcoming extended-stay MainStay
Suites Hotel will be popular.
Move over, Leo Ledohowski.
There are new Winnipeg hoteliers moving in to claim their share of a larger local hotel
market.
Make no mistake, Canad Inns, the company Ledohowski founded and remains president
and chairman of, continues to be the largest hotel chain in Manitoba.
For the past decade, Canad Inns seemed to be responsible for most of the new properties
(or conversions) coming onto the market. But that's no longer the case.
Two new hotels near the airport and Polo Park, which are in varying stages of completion,
are being developed by a couple of smaller operators. Both of them have been active in the
Winnipeg and southern Manitoba scene for many years with solid financial backing.
John Owens, who owns the Best Western Pembina Inns & Suites, is building the 100-room
MainStay Suites extended-stay hotel on King Edward Street south of Sargent Avenue,
scheduled to open next month.
Meantime, Mike Sapozhnik who owns the Quality Inn on Pembina Highway, the Dakota
Hotel and the Howard Johnson Express Inn on Portage Avenue near the Perimeter Highway,
is building a 126-room Fairfield Inn & Suites by Marriott on Ellice Avenue east of Empress
Street, which is scheduled to open next June.
The $12-million MainStay and $18-million Marriott are expensive projects for the
developers, but both say they believe the market can bear additional properties.
"I think there is still room for more hotels in the airport region," Owens said.
For his part, Sapozhnik is so confident that he plans to eventually build a second hotel
beside the Marriott, which will eventually share the swimming pool/waterslide that will be
part of the Marriott development.
And while Canad Inns became king of the suburban nightclub/lounge scene and built a mini-
empire around that success, these two new hotels will both be limited service -- strictly a
"heads and beds" business.
Both Owens and Sapozhnik are searching for restaurant developers to build on their
respective hotel properties on land they have assembled specifically for a third-party
restaurant.
Owens has built and sold Super 8 Motels in Brandon and Portage and has also been in the
restaurant business, which his family continues to operate in Brandon with two A & W
locations.
He is approaching his first foray into a larger format with an international brand flag and
has the confidence gained from years of experience.
There are always risks when introducing new products, but this time that risk is
compounded by the fact that MainStay's extended-stay format is fairly new to the Winnipeg
market. (Each room will contain a stovetop, dishwater, full-sized refrigerator and kitchen
utensils with tiered housekeeping services and room rates depending on the length of stay.)
Place Louis Riel caters to that market, but Owens' new property will be only the first
MainStay Suites hotel in the country, part of the Choice hotel chain, one of the largest in
the world.
Owens said he expects half of its business will come from guests requiring extended-stay
accommodations.
"We sure hope the concept works," Owens said.
"We think it will be able to service a need that is not currently being met."
While there are additional costs involved, flying a brand name flag means taking
advantage of a larger marketing net.
"We are certainly going to rely on their expertise," Owens said.
Running a mini hotel chain means creating management systems that work and in his case,
Owens has brought in an equity partner/manager in the person of Fred Hrehirchuk, former
manager of the Viscount Gort Hotel and a former Canad Inns executive.
"I'm really excited about the property," Hrehirchuk said.
"The extended-stay concept has been very popular in the U.S."
Heather Soule, a Choice Hotels spokeswoman based at the company headquarters in
Washington, said the company is keen to introduce the brand into Canada.
"We believe Canada as a whole is short on lodgings and the kind of travelling and resource
industry that goes on is well-suited for the extended-stay concept."
For Sapozhnik, he'll be happy to get a piece of the family market.
"We did a professional market study," he said. "We're very confident."
One of the reasons he has such strength in his conviction is because Marriott Hotels has
such a loyal following among quality hotel patrons and his will be the first in Manitoba.
The reputation comes at least partly because Marriott demands attention to detail in the
design and construction of its franchised locations.
"It is not easy building a Marriott," Sapozhnik said. "They have very strict requirements.
Customer-safety considerations are extremely important."
Sapozhnik already owns 135 rooms in the city in his three existing hotels. In addition to
the 126 rooms he's bringing on the market with the Marriott, he's planning a 50-room
expansion for the Dakota and another 125-room property beside the Marriott.
"We think the Winnipeg market is very strong," he said.
Jim Baker, executive director of the Manitoba Hotel Association, said these new hotel
properties that have been built throughout the city may be a sign of the times.
"Today, travellers are looking for creature comfort and there is a willingness to pay for it,"
he said.
So while the cheap road-side motels are becoming extinct, Ledohowski and Canada Inns
built up a market in Winnipeg for more comfortable, but still affordable, lodgings.
Now, the next wave of operators are moving in to take advantage of Ledohowski's trail-
blazing.
| CANADAextendedstay.com |
 | |  | |  | |  |
| Extended Stay Hotels * Apartment Hotels * All Suite Hotels Furnished Apartments * Corporate Housing * Serviced Apartments Short Term Housing * Corporate Apartments * Furnished Suites |
News and Articles
| List Your Property Click Here |
| © Copyright 2009-2011 CANADAextendedstay.com |