CHICAGO—Extended-stay hotels have become one of the most sought after property types in the strengthening hospitality sector. And officials from Chicago-based Arbor Lodging Partners believe the Midwest region provides some of the best opportunities for investors. The firm has now bought eight hotels in just the last ten months, including two in the Indianapolis area this summer.
“We really like Midwest markets that have diverse demand generators,” Arbor principal Sheenal Patel tells GlobeSt.com. He is also the chief executive officer of NVN Hotels, an Arbor affiliate that manages operations for its hotels and others owned by third-parties. US manufacturing is on the upswing, and this has had very positive effects on many cities in the central region, especially where auto manufacturers have operations. “Most of the guests that are coming into these hotels are business travelers.”
As for Indianapolis, it has become a powerful hub for distribution, and that burgeoning activity should keep its extended-stay hotels at high levels of occupancy. “These are very stable properties because most of the folks staying there are there for seven or more days.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
