Embassy Suites Hotels Announces Three-Year Goal to Expand Portfolio by 25% in the Americas

Growth to 300 Properties will be Propelled by Continued Development Flexibility and Enhancements to the Brand Offering

(McLean/Virginia, USA – 25 January 2013) Embassy Suites Hotels’ new Global Head, John Rogers, announced today the brand’s plans to grow the portfolio by 25 percent over the next three years to reach 300 properties in the Americas. Embassy Suites has honed in on a strategy that will drive the brand forward to aggressively increase market share, which focuses on leveraging the brand’s development flexibility to spur growth in urban markets while strengthening the core brand pillars and implementing smart, new innovations that meet the needs of both guests and developers.

Embassy Suites Phoenix - Airport at 24th Street

Embassy Suites Phoenix – Airport at 24th Street

“We are confident that we have the right resources and offerings in place to give developers a unique and valuable hotel option that is a solid investment and will continue to deliver on the brand promise for which Embassy Suites is known.”

While Embassy Suites will seek to deepen relationships with existing owners who want to build additional properties, the brand also sees an opportunity to grow its user base with owners who are new to the category, specifically focused service developers who want to move into the upper upscale segment. The Embassy Suites offering has proven very attractive to this audience due to superior premiums and operating margins on par with those found in focused service, a well-defined, proven operating model, and the fact that a very high percentage of rooms are driven by brand systems.

“Embassy Suites Hotels fits a unique niche in the marketplace, as there are many cities where both business and leisure travelers are seeking an upscale, full-service, all suites hotel option that provides great value and excellent customer service,” said John Rogers, Global Head of Embassy Suites Hotels. “We’re confident that our growth strategy enables us to bring the brand’s value proposition into new markets and evolve our product offering to effectively respond to changes in guest preferences and developer needs.”

Development has been on the rise for the brand since introducing a new Design Option III prototype and flexible “kit of parts” approach to development in 2009. This prototype – the biggest change the brand has made in the past 25 years – has played an integral role in spurring growth in key urban markets like Houston, Denver, Miami and Seattle. The design decreases the amount of land needed and creates efficiencies for both construction and operational costs, enabling the brand to capitalize on a variety of new development opportunities, including conversions, adaptive reuse and mixed use projects. Currently, nearly three-quarters of the properties in the pipeline feature Design Option III (or elements of it) that bring the key brand elements to life in a non-traditional way without impacting the integrity of the core offering.

As Design Option III demonstrates, Embassy Suites Hotels is always exploring innovative modes to enhance the value and convenience of the guest experience in ways that will also positively impact the bottom line for developers. “The core brand pillars – two-room suites, welcoming atriums, complimentary cooked-to-order breakfasts and Complimentary Evening Receptions* – are key differentiators for Embassy Suites so it’s essential to continually innovate upon them in a way that is relevant to our guests, and then execute them consistently across the portfolio,” said Rogers. This year, the brand portfolio will include new and enhanced offerings such as:

  • Atrium: In both new and existing properties, the atrium area will be transformed into more of a social lobby space where guests can feel comfortable spending time outside of their rooms. The new space has multiple seating areas and configurations designed for gathering and lounging in addition to landscaping and water features that provide the great sense of space and natural light that the Embassy Suites atrium is known for. The atrium decor will also incorporate elements that reflect the local flair of the region, such as sculptures from a local artist or artifacts from a local trade.
  • Cooked-To-Order Breakfast: The breakfast offering has been redesigned to feel more like an upscale, retail environment with updated signage, place settings and displays. Improved flow and efficiency makes it easier for operators to serve guests, and for guests to enjoy whatever breakfast experience they want, whether it’s grabbing a yogurt to go or sitting down to enjoy an omelet and coffee.
  • Brickstones Grill: This easy-to-operate turnkey dining concept helps developers maximize revenue by leveraging the cooked-to-order breakfast space for lunch and dinner to provide a convenient, self-serve food and beverage solution for guests. The contemporary American grill eatery features a brick pizza oven, open pit grill and rotisserie at a low labor cost for owners.
  • “We’re extremely optimistic about the future for Embassy Suites Hotels,” said Rogers. “We are confident that we have the right resources and offerings in place to give developers a unique and valuable hotel option that is a solid investment and will continue to deliver on the brand promise for which Embassy Suites is known.”

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