DENVER—RLH Corporation (NYSE:RLH) (“RLHC” or “the Company”) has relaunched GuestHouse International as GuestHouse Extended Stay, targeting its efforts to meet the demand for longer-term stays with an upper-economy offering ideally suited for conversions. The concept will feature streamlined housekeeping services, community-centric guest amenities, and right-sized brand standards designed to maximize owner return on investment.
“Despite the extraordinary drop in travel demand our industry is experiencing due to the pandemic, one hotel segment continues to perform significantly better under pressure, and that is extended stay,” said John Russell, CEO of RLH Corporation. Given the statistics, along with the need for extended stay hotels from groups such as construction crews, essential workers, corporate training candidates and families with long-term medical treatments, Russell said, “we had a major opportunity to transform our GuestHouse brand into an upper-economy extended stay model set up for future success due to the resilient nature of the segment.”
Featuring low flat fees that let owners keep more of what they earn, GuestHouse Extended Stay incorporates an owner-first mindset with flexible property improvement plans and brand requirements. GuestHouse Extended Stay properties will include a minimum of 10% of rooms with full kitchenettes with the remaining guestrooms having modified mini kitchenettes, making conversions from non-extended stay or suites concepts achievable for nearly all properties. Through modular guestroom upgrade options created by RLHC and attractive vendor pricing, owners will face minimum downtime and conversion costs.
The brand’s impactful and cost-effective room packages feature a crisp, contemporary feel suitable for any environment, blackout modern window treatments, refreshed art packages, a dining table that can be used for working and eating, and one soft seating element for extra comfort during long stays. Each GuestHouse Extended Stay will feature an in-lobby marketplace with fresh snacks and beverages and a food delivery partnership through a major meal delivery service. “Comforts of Home” amenities will be available, including optional complimentary bikes, board games, and blenders for guest use. All GuestHouse Extended Stay properties will offer laundry facilities at no charge to guests and will encourage guests to keep their routine with an onsite gym or complimentary passes to a local gym.
Not only is the demand for extended stay hotels high with travelers, but demand is also high for hotel owners and developers. With six new build opportunities and 15 conversion prospects in the pipeline in areas such as southeast Texas, Arizona, Florida, and Washington state, the Company is enthusiastic about the numerous opportunities on the horizon. “We want to give hotels owners an opportunity to step out and differentiate themselves within their markets and be successful with an innovative, adaptable, and conversion-friendly extended stay model,” said Harry Sladich, EVP of Lodging Development & Franchise Operations. The Company plans to identify communities where the extended stay product is underrepresented, particularly within major metropolitan areas, and welcomes interest from all owners looking for an alternative to garner not only an increased market share, but higher RevPAR.