Maria Wood Real Estate Forum
LOS ANGELES-With its purchase of the Summerfield Suites franchise system now complete, Global Hyatt Corp. has renamed the upscale extended-stay brand Hyatt Summerfield Suites. The new brand was introduced Monday at the Americas Lodging Investment Summit, held at the Hyatt Regency Century Plaza here.
The move is similar to what Hyatt did last year when it acquired the AmeriSuites system and decided to rechristen the select-service chain as Hyatt Place. According to Jim Abrahamson, Hyatt's senior vice president of acquisition and development, the Chicago-based hotel company has budgeted $200 million for post-acquisition renovations of the AmeriSuites and Summerfield properties. "This is a major strategic investment for Hyatt," he said.
In addition to its high-end Hyatt and Park Hyatt full-service brands, Hyatt owns another extended-stay chain, Hawthorn Suites, as well as Microtel, an economy lodging offering. The new Summerfield Suites chain will not compete with Hawthorn because, according to a company release, Hawthorn is positioned as a mid-priced extended-stay and all-suites brand.
There are currently 21 Summerfield Suites with more than 3,000 rooms open, with the first of the converted Hyatt Summerfield Suites to come on line by late 2006. Abrahamson said that the upscale extended-stay segment is "poised for major growth," with much of the current product in the category aging. The new brand's main competitors are seen as Homewood Suites and Residence Inns. "There is a need for new product," the SVP said. "It's a good time to get into the segment." A new prototype for Hyatt Summerfield Suites is expected to be unveiled by midyear, according to Abrahamson.
Hyatt Place is seen as an upscale select-service brand for short-term transient travelers. Renovations will begin in the spring on the 146 AmeriSuites to convert them to the Hyatt Place franchise with the first opening in 2007.
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