"We have a lot of contracts for properties in Texas at the moment, but no construction under way in Texas," says the company contact. Construction is pending at MoPac Boulevard and Southwest Parkway where Extended StayAmerica hopes to open its 38th Texas location after finalizing contract negotiations for the land. Construction is tentatively scheduled to begin in early 2001, says the spokeswoman.

"We choose our areas for expansion based on market demand for extended-stay properties," she says. "Most of our development is in the West and Northeast." Company real estate representatives operating out of eight regions select the sites. Texas is included in the company's southeastern division based in Spartanburg, SC. A site such as the company's new Guadalupe Street location in Austin, she explains, appeals to the company because it is in a high-visibility area, near the Capitol and the University of Texas.

The extended-stay hotel concept is quickly catching the attention of the traveling public, prompting companies such as Extended StayAmerica to keep up with market demand for the rooms. A 1998 study commissioned by the company through PricewaterhouseCoopers had concluded the national demand for extended-stay hotel rooms exceeds available rooms by a 3-to-1 margin.