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MainStay Suites Live Like Home Value-engineered to help deliver a competitive cost per room, the MainStay Suites brand allows owners and operators to care for the special needs of long-term guests at a reasonable cost. As an extended stay product, MainStay ® enjoys high occupancy rates and operational competencies typical of its business model. As a midscale all-suites brand, MainStay Suites hotels are a home on the road for extended stay guests. Sleep Inn Dream Better Here ® Sleep Inn is the midscale new construction brand that sets itself apart from competitors with a cost-effective prototype – designed to deliver a high return on investment by keeping development and operating costs low and performance high. Intended to drive strong guest satisfaction and loyalty, the Sleep ® prototype delivers on the brand promise – delighting guests with a simply stylish stay at an affordable price. Sleep Inn ® and MainStay Suites ® Combination Hotel Today’s smart move in hotel development The combined Sleep Inn and MainStay Suites hotel design joins two great brands in one building. With a highly economical design and operating model, it allows for unique construction options enabling developers to capitalize on both transient and extended stay market demand under one roof. By combining two highly sought-after brands in the same building, demand generators from multiple market segments can be accommodated in one building, on one site. The smart design squeezes efficiencies from every square foot of the hotel. Significant operating efficiencies occur due to operating only one front desk, as well as reduced back of the house and service staffing. High occupancies achieved by the MainStay Suites brand, combined with reduced operating expenses, are designed to drive improved operating margins and a return on investment.

Sleep & MainStay Dual-Brand Overview

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MainStay SuitesLive Like HomeValue-engineered to help deliver a competitive cost per room, the MainStay Suites brand allows owners and operators to care for the special needs of long-term guests at a reasonable cost. As an extended stay product, MainStay® enjoys high occupancy rates and operational competencies typical of its business model. As a midscale all-suites brand, MainStay Suites hotels are a home on the road for extended stay guests.

Sleep InnDream Better Here®

Sleep Inn is the midscale new construction brand that sets itself apart from competitors with a cost-effective prototype – designed to deliver a high return on investment by keeping development and operating costs low and performance high. Intended to drive strong guest satisfaction and loyalty, the Sleep® prototype delivers on the brand promise – delighting guests with a simply stylish stay at an affordable price.

Sleep Inn® and MainStay Suites® Combination HotelToday’s smart move in hotel development

The combined Sleep Inn and MainStay Suites hotel design joins two great brands in one building. With a highly economical design and operating model, it allows for unique construction options enabling developers to capitalize on both transient and extended stay market demand under one roof.

By combining two highly sought-after brands in the same building, demand generators from multiple market segments can be accommodated in one building, on one site.

The smart design squeezes efficiencies from every square foot of the hotel. Significant operating efficiencies occur due to operating only one front desk, as well as reduced back of the house and service staffing. High occupancies achieved by the MainStay Suites brand, combined with reduced operating expenses, are designed to drive improved operating margins and a return on investment.

brand HigHligHts

· 446 sleep inn and 81 Mainstay properties are open or under development worldwide currently.

· in 2013, Choice Hotels central reservations and marketing channels delivered 56% of sleep inn & suites reservations and 58.3% of Mainstay suites reservations.**

· Mainstay suites hotels boast the highest average occupancy rate (66.8%) across all Choice Hotels brands.***

· Participation in the Choice Privileges® guest loyalty program, one of the fastest-growing rewards programs in the hotel industry with more than 19 million members.

· the Choice Hotels global sales team works with more than 640 corporate accounts and is committed to increasing the number of room nights from the critical business travel market.

· access to the Choice Hotels web-based property management system, choiceadVantagE®, that provides effective rate and inventory management designed to drive higher yield.

Architectural & Design FeaturesThe Sleep Inn and MainStay Suites hotel combines the key signature features of both brands—the Sleep Inn signature tower and Porte-Cochere along with the distinctive MainStay roof line. It offers a single lobby and community room.

Key Brand IdentifiersAll guests are offered: free Sleep Inn Morning Medley breakfast, complimentary high-speed Internet access, exercise facilities, guest laundry, business center, MainStay Marketplace and free cable TV, including a premium movie channel.

Each MainStay Suites room has a fully-equipped kitchen including: refrigerator, dishwasher, microwave, 2-burner cook-top, sink, coffee maker, cookware and utensils. Housekeeping labor savings are achieved by the standard Weekly housekeeping and Daily Lite-Touch service for MainStay Suites rooms.

In addition to its spacious signature showers, free Wi-Fi, and Morning Medley breakfast, the Sleep Inn brand’s warm neutrals, fresh graphics, and soothing colors provide guests with a simply stylish stay experience designed to drive guest satisfaction and loyalty.

Offering the best amenities of both brands to guests, this combo hotel provides an opportunity to meet the needs of almost any travel occasion.

With 75 years’ experience, and more than 6,800 properties open and under development worldwide, Choice Hotels is one of the largest franchise organizations in the world. We offer services, resources, field support, a property management system and on-going training all designed to optimize hotel performance. In 2013, the total system-wide revenue generated from the Choice Hotels marketing and reservations channels was over $3.1 billion and over $212 million was spent system-wide on programs and promotions designed to increase brand awareness and drive hotel reservations.*

ChoiceHotelsFranchise.com

* Source: Figures reflect the revenues delivered through the Choice Hotels Central Reservation System (CRS) and other non-CRS marketing channels in 2013. The spend figure is based on accounting records of the System fee in 2013 and has been compiled in a manner consistent with generally accepted accounting principles. See Franchise Disclosure Document dated April 1, 2014.** Source: See Sleep Inn and MainStay Suites Franchise Disclosure Documents dated April 1, 2014, Item 19. For the 179 Sleep Inn hotels that were included in the sample, 87 hotels or 48.6% met or exceeded this amount. For the 18 MainStay Suites hotels that were included in this sample, 8 hotels or 44.4% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY.*** Source: See Mainstay Suites Franchise Disclosure Document dated April 1, 2014, Item 19. For the 18 hotels that were included in the sample, 9 hotels or 50.0% met or exceeded this amount. Average Occupancy Rate. INDIVIDUAL RESULTS MAY VARY. Unless otherwise noted, all figures and statistics in this document are from the Sleep Inn or MainStay Suites Franchise Disclosure Documents, dated April 1, 2014, or from internal data of Choice Hotels International, Inc.This advertisement is not an offering. For New York: an offering can only be made by a prospectus filed first with the Department of Law in the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: Sleep Inn #F-1799; MainStay Suites #f-3269.A copy of the Franchise Disclosure Document may be obtained through contacting Choice Hotels International at 1 Choice Hotels Circle, Suite 400, Rockville, MD 20850, [email protected].© 2014 Choice Hotels International, Inc. All rights reserved. 14-161/05/14