hospitalitystyle.com

(July 2008) posted on Fri Jul 25, 2008 EDT

Cost-effective design initiatives at select-service and mid-tier hotels energize brands on a budget.

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By Jenny S. Reising

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High prices don't guarantee a monopoly on style. Just think about what lines by Thomas O'Brien and Zac Posen have done to beef up Target's market reach. "Retailers like Target and IKEA have championed the idea of ‘design for all,' making it possible to be stylish without spending a lot of money," says John Merkin, IHG's senior vice president, brand management, Holiday Inn Brands, The Americas. Now, select-service and mid-tier hotel brands are getting on the design-led bandwagon, offering chic lifestyle experiences without the typical lifestyle sticker shock.

From Best Western and Holiday Inn to Yotel, Hampton Hotels and Microtel Inns & Suites, here's a look at how budget-minded hotels are finding innovative ways to boost their looks in ways their upmarket competitors might envy.

Re-Energizing the Brand

Budget-conscious consumers with low expectations are a thing of the past. With design now accessible and affordable, select-service, economy and mid-tier hotel chains are rethinking their design strategy to stay competitive and relevant. But how do you create an upscale look without pricing yourself into a higher market?

For Microtel, "Very little had been done in terms of design or décor since 1987," says Debbie Campbell, senior vice president of marketing, U.S. Franchise Systems Inc. (USFS), Microtel's parent company. "As we grew to nearly 300 hotels, we realized we had to energize the brand."

Rather than hire a branding or design firm, the chain tapped the creative juices of graduate students from the Savannah College of Art and Design in its hometown of Atlanta. The students were given a set of must-haves-signature elements such as a window seat, built-in furniture, mirror behind the bed and valence lighting-and asked to revamp the guest suite. The new concept takes a fashion-forward approach by creating four "zones"-café, activity, relaxation and sleep-and adding user-friendly elements such as a curved work desk with built-in Ethernet connections.

From a cost perspective, this vibrant and contemporary look is a win-win for Microtel and its franchisees. Not only did Microtel save money by turning to students rather than professionals, but the new design also costs only $800 more per room to implement than its predecessor.

Wyndham Worldwide Corp. will reap the benefits of this design upgrade, as it acquired USFS and its Microtel Inns & Suites and Hawthorn Suites hotel brands in early June from a subsidiary of Global Hyatt Corp.

High Design, Low Cost