Hotel Brands Looking to Join the High Performance of Extended-Stay Lodging
Yariv Ben-Ari, Herrick partner and co-chair of the Real Estate Hospitality Group, was quoted in an article from GlobeSt. discussing the extended stay model for hotel brands and travelers. Hilton, Marriott and AirBnB are all expanding their extended stay options for travelers.
Yariv tells GlobeSt. that it’s "no surprise" to see brands such as Marriott and Hilton, as well as Airbnb, increasing their inventory of extended stay brands for a few converging reasons. He continues, "Perhaps the most significant is the current economic realities – including a high-interest rate environment and significantly-reduced lending options – with these less costly assets allowing for reduced development costs for sponsors, even amid an economic slowdown."
Yariv adds, "Additionally, the continuation of the "work from home" and "home away from home" trends make these properties more attractive to a broader swath of visitors. Reduced fees and development costs naturally lead to higher profitability for these developers and longer stays with more, albeit reduced, fees for the brands."