00:01.136 –> 00:02.377
Anthony, it’s so great to see you.

00:02.397 –> 00:04.920
I got to tell you, I’m going bananas for today’s show.

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We saw the OnlyFans page for bananas.

00:07.923 –> 00:08.443
I’m Anthony.

00:08.623 –> 00:09.924
Welcome to No Vacancy Lines.

00:10.265 –> 00:11.126
That’s my friend Glenn.

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You’re watching the number one show in hospitality.

00:27.363 –> 00:27.903
Hey, everybody.

00:27.924 –> 00:30.566
Welcome to the one and only No Vacancy Live.

00:30.606 –> 00:31.867
That’s Anthony Melchiorri.

00:32.167 –> 00:33.048
I’m Glenn Hausman.

00:33.088 –> 00:35.370
It’s so great to see each and every one of you today.

00:35.470 –> 00:41.796
So, Anthony, I’m here at the beautiful One Hotel in South Beach, Miami.

00:41.816 –> 00:48.603
I had the honor of getting to speak with Raul Leal, the CEO of SH Hotels, the parent company this morning.

00:48.823 –> 00:51.025
And this is a beautiful hotel over here.

00:51.570 –> 00:53.071
Yeah, were you there yesterday or no?

00:53.091 –> 00:53.872
You were in a different hotel.

00:53.912 –> 01:01.198
No, I was here yesterday, but it was kind of a surprise that I was going to be doing this thing this morning, so we had to keep it all under wraps and stuff like that.

01:01.618 –> 01:02.779
Oh, that’s why you didn’t mention it.

01:03.240 –> 01:04.361
Yeah, yeah, I know.

01:04.401 –> 01:05.101
So I’m happy to be here.

01:05.121 –> 01:08.484
You see, I got a different angle today, so you can see the room.

01:08.544 –> 01:11.627
Like, look how cool this place is.

01:11.807 –> 01:18.753
And so I look like I belong to run that hotel because I have a little, you know, a little gruff on my face.

01:18.773 –> 01:18.853
Yeah.

01:20.534 –> 01:21.674
Yeah, I hear you.

01:21.915 –> 01:22.195
Oh, yeah.

01:22.235 –> 01:25.516
Dr. Producer Suzanne is saying we have to mention the anniversary.

01:25.936 –> 01:29.337
Eight years of no vacancy.

01:29.737 –> 01:35.339
I started the company eight years ago in January, but we did start the podcast just around the NYU Investment Conference.

01:35.359 –> 01:38.380
So it took me a few months to get my act together and get stuff together.

01:38.520 –> 01:42.141
But it’s been absolutely delightful.

01:42.761 –> 01:46.742
And eight years ago in podcasting was like last year in AI, right?

01:47.002 –> 01:49.143
Nobody knew anything about AI last year.

01:49.163 –> 01:49.703
Now everybody does.

01:50.063 –> 01:55.046
No, my old job, I started podcasting like four years before that or something.

01:55.286 –> 01:57.107
So how long have we been doing it?

01:57.147 –> 01:59.008
We’ve been doing it, dude, about five years now.

02:03.399 –> 02:03.820
Not true.

02:04.500 –> 02:05.001
It is true.

02:05.241 –> 02:06.302
We did four years.

02:06.362 –> 02:17.074
Remember March 2020, we started doing this together, but we did a whole year and change going back to August of 18, I think, when we started doing our show together.

02:17.134 –> 02:23.841
I refuse to believe that because that means you’re older and I refuse to believe that you got older.

02:24.261 –> 02:27.765
Hey, listen, I try to stay eternally young.

02:28.066 –> 02:34.293
And one way that we stay eternally young here is by making sure you folks out there get the best information out.

02:34.873 –> 02:43.783
One of the things, Anthony, that’s really been taking off over the last 10 years is the flood of extended stay lodging in the hospitality business.

02:44.384 –> 02:45.084
Owners love it.

02:45.604 –> 02:46.785
Consumers love it.

02:47.225 –> 02:49.625
The brands are starting to really love it.

02:49.986 –> 02:54.247
But what are the folks that own and operate and want to promote these hotels going to do?

02:54.307 –> 03:03.129
Well, they are going to connect with the good folks over at the Extended Stay Lodging Association, which formed, I think, last March, just before the Hunter Hotel Investment Conference.

03:03.149 –> 03:04.870
They’ve been doing a lot of work behind the scenes.

03:05.290 –> 03:06.470
Finally have them here today.

03:06.770 –> 03:12.392
We’ve got Doug Artugio and Kimberly Rowell joining us to talk about this today.

03:12.632 –> 03:13.612
Hey, guys, how are you today?

03:14.832 –> 03:15.372
Doing well.

03:15.392 –> 03:15.993
Hi, Glenn.

03:16.033 –> 03:16.713
Hi, Anthony.

03:16.973 –> 03:17.673
Great to be here.

03:18.114 –> 03:20.335
Good to see you.

03:20.675 –> 03:24.456
I was saying in the green room, the Extended Stay and now the Cool Kids.

03:24.956 –> 03:32.499
I remember I opened up the Extended Stay, Staybridge Suites in Times Square, probably now going back 18, 16 years ago.

03:34.624 –> 03:39.890
And it was really the first urban state bridge and the first urban extended state in New York.

03:40.571 –> 03:42.233
And we were not cool.

03:42.313 –> 03:44.796
Matter of fact, I remember somebody saying, why are you opening a brand like that?

03:45.697 –> 03:47.199
That’s going to kill your career.

03:47.939 –> 03:49.942
And now it’s all the cool kids.

03:52.246 –> 03:56.229
And Doug has quite the experience doing that with IHG.

03:56.289 –> 04:00.291
He was probably there in New York with you opening the hotel, but again, it wasn’t cool.

04:00.351 –> 04:01.552
Were you not a cool kid, Doug?

04:02.172 –> 04:05.955
Well, I hang out with Glenn, so that makes me cool.

04:06.395 –> 04:08.596
But do you know the name Rob Radomski?

04:08.976 –> 04:10.637
I know Rob very well.

04:11.138 –> 04:15.460
Okay, so Rob and I… Wait, wasn’t he a brand leader back in the day?

04:15.760 –> 04:17.281
He lived in the suites in the mid-2000s.

04:17.421 –> 04:17.702
Yeah. 2008.

04:22.233 –> 04:23.736
seven, eight, that area.

04:24.157 –> 04:24.337
Yeah.

04:24.457 –> 04:27.843
And he and I, he came to the hotel, me and him were, I loved him.

04:28.104 –> 04:30.568
And we were, we were doing great together, getting it open.

04:31.169 –> 04:34.095
And then he came right before it opened and he’s looking at our duvets.

04:35.114 –> 04:37.815
And he said, you don’t have our duvet on there.

04:37.835 –> 04:38.735
You don’t have our blanket.

04:39.216 –> 04:40.276
I said, yeah, we’re not doing the blanket.

04:40.296 –> 04:41.216
We’re doing white duvets.

04:41.637 –> 04:42.457
He goes, no, no, no.

04:42.917 –> 04:45.918
You need to have the blanket, the standard blanket for State Bridge.

04:45.958 –> 04:46.698
I go, we’re not doing it.

04:46.718 –> 04:47.679
We’re doing white duvets.

04:48.239 –> 04:48.479
Right.

04:49.039 –> 04:56.042
And this is after I got him to change the colors of the sign outside from that turquoise to black and white because it’s New York First Urban State Bridge.

04:56.542 –> 04:58.223
Finally got that approved after months.

04:58.723 –> 05:00.424
And he goes, and he said, nope.

05:02.399 –> 05:05.120
I said, all right, all right, all right, all right, all right, all right.

05:05.640 –> 05:06.100
He left.

05:06.280 –> 05:07.100
White Duvet’s went off.

05:08.401 –> 05:11.422
And he never said anything about it.

05:11.502 –> 05:12.142
I love that man.

05:12.202 –> 05:13.582
I love that man.

05:13.642 –> 05:15.223
See, you’ll have so much to add.

05:15.243 –> 05:22.125
It’ll be the contrast from decade over decade on how the segment has evolved since then.

05:23.125 –> 05:23.505
Right.

05:23.685 –> 05:28.287
My first two Staybridge Suites in 2000, actually on the same day.

05:28.307 –> 05:29.907
I think number 32 and 33 in the system.

05:29.927 –> 05:29.987
Wow.

05:32.735 –> 05:38.298
20 plus years owning, operating, as well as others, you know, properties.

05:39.318 –> 05:49.844
Doug, it’s so funny because it’s kind of like the extended stay business seems to be the big star, the overnight success in hospitality.

05:50.184 –> 05:55.847
But just like everything else, it seems to you need decades of work in order to be that overnight success.

05:55.887 –> 05:58.228
And it’s amazing how far back the roots are.

05:58.528 –> 06:01.030
of extended stay actually goes in our business.

06:01.070 –> 06:06.613
So the first question I really have for you guys is why create the association now?

06:06.753 –> 06:08.514
Why not a few number of years ago?

06:08.634 –> 06:09.834
Why not a few years from now?

06:10.095 –> 06:10.455
Why not?

06:10.995 –> 06:12.896
I mean, that’s a great question, Glenn.

06:12.936 –> 06:16.538
And it’s, although it’s got like a three or four point answer, right?

06:17.158 –> 06:22.101
And meaning that, so my background goes back 20 plus years in extended stay.

06:22.581 –> 06:25.143
I ran a large full service portfolio for IHG,

06:25.922 –> 06:27.703
I ran the franchise sales group.

06:28.083 –> 06:39.030
And so we were doing extended state properties and I would see people’s net incomes from one year or two years later change dramatically because these type of products throw off just a ton of cash.

06:39.510 –> 06:39.850
Okay.

06:40.330 –> 06:47.014
And so I gave a year’s notice to say that I wanted to leave to build extended state products.

06:47.695 –> 06:48.735
Okay.

06:48.755 –> 06:50.936
And if then, so that’s part one.

06:51.297 –> 06:53.438
Part two, throughout the pandemic,

06:54.549 –> 06:58.094
You know, the entire hotel industry got wiped out in many, many ways.

06:58.714 –> 07:07.405
However, if your extended stay property is running in the 90s, as many were, the worst I ever had of it was like 73 to 75% occupancy.

07:07.905 –> 07:10.088
So we skated through the pandemic.

07:10.769 –> 07:11.009
Okay.

07:11.875 –> 07:15.458
Well, wait, Doug, let me hold you right there because there’s an interesting point to be made.

07:16.219 –> 07:25.908
These were already successful, but the pandemic flipped a switch to get the wider hospitality community to really understand and see the value there.

07:26.309 –> 07:31.233
Yeah, thanks to digital nomads and our mobile workforce.

07:31.333 –> 07:32.414
Thank goodness, right?

07:32.534 –> 07:37.299
I mean, that was the game changer of it because our guests changed.

07:37.839 –> 07:49.063
So the brands may be the same, may have been the same up until that point, of course, now launching so many more, but the guest dynamic and that change, that was the key difference.

07:49.524 –> 07:51.304
Doug three.

07:51.604 –> 07:56.946
The quote becomes the secret to some is now the secret to none.

07:57.607 –> 07:57.827
Right.

07:58.287 –> 07:58.547
Okay.

07:59.127 –> 08:03.709
So point three is that they do act differently.

08:03.949 –> 08:04.249
Okay.

08:04.289 –> 08:06.490
The whole economics of the program are,

08:07.236 –> 08:09.857
considerably different, which we’ll talk later about, I believe.

08:10.558 –> 08:15.060
But it is a far superior return on investment than other brands.

08:16.140 –> 08:19.262
Now, during the pandemic, there were a lot of layoffs.

08:19.662 –> 08:26.145
Individual owners had to lay off their sales offices and just reservation, revenue management.

08:26.445 –> 08:29.947
And all of these things are key to a successful extended stay.

08:30.667 –> 08:37.010
So now that the secret is out and everyone wants to build and the brands are now coming out with brand after brand after brand,

08:37.537 –> 08:44.923
There is a big void in education, in competent people, because this is not about turning on the vacancy sign.

08:45.264 –> 08:46.425
This is about working it.

08:46.685 –> 08:48.346
This is about your local sales area.

08:48.646 –> 08:54.171
It’s about getting down in the trenches and finding who’s doing construction in the area, on and on and on and on.

08:54.792 –> 09:01.417
So the need for the association was, A, let’s get back after a long career and extended stay.

09:01.437 –> 09:02.098
Mm-hmm.

09:02.841 –> 09:20.725
there’s an education void that we really need to, as a group of hoteliers, not Doug Artusio, but in a greater facet with all of the brands involved, how do we get back to that strong category of individuals that are going to run and understand these products?

09:21.605 –> 09:23.005
So that was the primary reason.

09:23.445 –> 09:26.806
And we did it as a nonprofit because, again, it’s education.

09:27.466 –> 09:31.347
There shouldn’t be anything in it for any of us as board members outside of

09:31.991 –> 09:37.352
bringing a collective level of education and experience to the masses, if you will.

09:37.953 –> 09:39.353
All right, but why?

09:39.653 –> 09:41.434
Because, Doug, you got it good, man.

09:41.494 –> 09:42.814
You got it all figured out.

09:43.034 –> 09:47.375
You’re going to let everybody in on all of your secrets here that they seem to be learning about.

09:47.455 –> 09:52.637
Why spend all this extra time and effort to give back to the community in this sort of way?

09:53.757 –> 09:54.437
That’s okay.

09:54.537 –> 09:58.618
I mean, I own a number of properties or shares in a number of properties.

09:59.318 –> 10:01.299
It’s not about what’s on the dinner table tonight.

10:01.986 –> 10:03.587
It’s about the community.

10:04.167 –> 10:07.109
It’s about a belief in passion, as Kimberly shares with me.

10:08.409 –> 10:12.371
She’s building extended stay, you know, on a very passionate level.

10:12.411 –> 10:20.576
So it’s not that I’ve had my time, but there’s so much time left and everyone deserves to know this.

10:21.076 –> 10:23.117
I mean, I have data from Mark Skinner that.

10:23.601 –> 10:25.241
I think it’s going to blow your mind later.

10:25.761 –> 10:26.001
All right.

10:26.222 –> 10:31.203
Mark Skinner is, of course, with the Highland Group, and they are the preeminent field in extended stay.

10:31.603 –> 10:39.184
Mark Skinner was going to conferences talking about extended stay when nobody understood what extended stay is.

10:39.244 –> 10:45.985
Kimberly, I want to hear from you, but I thought it would be important to tell you just how serious this association is.

10:46.106 –> 10:49.466
Anthony, waiting to hear who some of these people are on their board.

10:49.506 –> 10:53.287
We got Simon Mendy, divisional president over at Ambridge, friend of the show.

10:53.727 –> 10:56.930
Rick Colling of Hilton, who’s a global brand leader over there.

10:57.490 –> 11:01.493
The one and only Jimmy Taylor from IHG, VP of Ops.

11:01.733 –> 11:03.194
Jason Ballard from Hyatt.

11:03.295 –> 11:04.796
Matt Mecklehair from Choice.

11:04.896 –> 11:06.617
Phil Hugh from Sonesta.

11:06.697 –> 11:08.278
Carl Wren of Concord.

11:08.659 –> 11:10.360
Scott Stevens of HREC.

11:10.740 –> 11:12.061
That aforementioned Mark Skinner.

11:12.662 –> 11:15.064
Glenn Bisping of Extended Stay America.

11:15.244 –> 11:17.185
Our friend Matt Hostetler from Red Roof.

11:17.285 –> 11:19.707
And of course, Kimberly and Doug.

11:19.787 –> 11:20.488
What a group, huh?

11:21.149 –> 11:24.853
Listen, you had major credibility, and then you said Jimmy Taylor.

11:25.093 –> 11:27.076
Poor Jimmy.

11:27.556 –> 11:34.705
Listen, we all know Jimmy Taylor is not very good at what he does, and he’s not good looking.

11:36.026 –> 11:38.950
He’s probably the most extended-case salesperson on the planet.

11:39.470 –> 11:39.811
What’s that?

11:40.742 –> 11:49.126
I was just saying that Jimmy Taylor, and I’ve known him for 25 years, he is the quintessential salesperson, as well as any other operator in the business.

11:49.386 –> 11:50.426
He’s the best in the business.

11:51.107 –> 11:54.328
Jimmy and I are very dear friends, and I’m just jostling.

11:54.368 –> 11:55.128
I love that man.

11:55.148 –> 11:58.450
I never, ever want to take a stage after that man.

11:58.470 –> 12:02.132
I don’t want to stand next to him because he’s… He is a little fire off.

12:02.192 –> 12:02.692
He really is.

12:03.532 –> 12:04.993
Yeah, he’s fantastic.

12:05.933 –> 12:06.554
But that’s great.

12:06.694 –> 12:07.314
So, Kimberly…

12:09.657 –> 12:10.478
Tell us about the board.

12:10.519 –> 12:14.967
Tell us about why Doug kind of mentioned it, but why did you get involved?

12:16.530 –> 12:18.033
Because Doug made me do it.

12:18.073 –> 12:18.974
No, I’m just kidding.

12:20.564 –> 12:46.560
i’m just kidding um and but it is because of his passion right obviously you hear his passion and i may have a little bit myself but one of the reasons was i very quickly realized that the newer operators and these newer investors that i was working with having to manage and operate didn’t understand the segment they didn’t understand the animal and they were trying to or attempting to operate as if it were another segment right

12:46.980 –> 12:50.545
And unfortunately, that’s not going to provide an ROI.

12:50.685 –> 12:50.946
This

12:51.656 –> 12:59.059
What sets Extended Stay apart is stability, resilience, and most importantly, profitability.

12:59.399 –> 13:03.660
But you can’t be profitable if you’re running it like any other segment.

13:04.200 –> 13:16.625
And my benefit for the association was that this would give my owners, operators, investors, and colleagues the opportunity to have access to peer-to-peer

13:17.918 –> 13:22.100
With experts and icons, people that have done this like Doug for years and years.

13:22.461 –> 13:27.924
And so they’re able to sit down with them in our town hall meetings and ask them questions on how to get it done.

13:28.304 –> 13:31.826
And selfishly on my part, once they understand it, it makes my job easier.

13:31.886 –> 13:33.727
So maybe it was a little bit selfish also.

13:33.747 –> 13:41.412
But, you know, but sincerely, when you look at the stats and again, can’t thank Mark and the Highland Group enough for that.

13:41.952 –> 13:46.274
You know, having us have a little bit of insider info on that.

13:46.494 –> 13:52.316
But you just if you can get that in front of people and teach them, they can be profitable as well.

13:52.416 –> 14:02.620
And as many brands that are launching and, you know, keys that are going up, we need people to be successful because the segment can’t fail for all of those of us who are investors.

14:03.020 –> 14:06.622
And we also, you know, you hear the term backyard sales.

14:07.242 –> 14:10.083
But extended stay is backyard sales more than anything.

14:10.123 –> 14:17.945
So when I try to explain somebody that is new to extended stay business, I show them a little mud room pad and I show them a black washcloth.

14:18.505 –> 14:19.645
And they’re like, what’s this?

14:20.586 –> 14:22.266
And you’re laughing because you know exactly what that is.

14:22.546 –> 14:28.388
Because when the construction guys come off the site, they’re going to wash their boots and I want them to use a black rag.

14:28.808 –> 14:32.829
And when they come in the door, I want them to put their boots on the mud pad.

14:33.309 –> 14:34.429
And they’re like, oh, okay.

14:36.690 –> 14:57.710
it really is a different business yeah different even more so now and i think that’s why we’re even seeing you know segments that are getting into this that you never thought would have because of these digital nomads because of this mobile workforce they want to feel at home they want the amenities of home so we have to create extended stay brands to accommodate

14:58.410 –> 15:00.112
These room nights and listen to this.

15:00.192 –> 15:03.034
This is so just fantastic.

15:03.134 –> 15:12.542
But the long the cities with the longest average length of stay Fort Worth, Texas, 116 room nights length of stay.

15:12.602 –> 15:13.523
That’s crazy.

15:14.003 –> 15:18.085
Charlotte, Atlanta, 101.

15:18.125 –> 15:20.186
101 is their average length of stay.

15:20.206 –> 15:21.486
That’s insane, right?

15:22.167 –> 15:27.369
Also, just a couple of stats for key viewers wanting, thinking about getting into the segment.

15:27.729 –> 15:30.550
We’re actually able to, you know, guide and lead.

15:30.690 –> 15:39.334
But the cities right now at 70 to 29 room nights, average length of stay in all extended stay segments.

15:40.474 –> 15:41.755
D.C., L.A.

15:42.075 –> 15:51.018
and Phoenix at 70 to 29 nights and then at 30 nights or over, Virginia Beach, Memphis and Portland.

15:51.398 –> 15:51.658
Wow.

15:51.678 –> 15:53.499
So those are just key markets.

15:53.619 –> 15:57.000
But again, it goes back to the digital nomads and mobile workforce.

15:57.380 –> 15:59.441
And what are they wanting to do in that area?

15:59.581 –> 16:01.642
So I love what you said about backyard sales.

16:02.342 –> 16:03.042
Absolutely.

16:03.483 –> 16:13.227
And it’s really understanding what’s attracting people, these digital nomads and mobile workforce to your city and community to maximize on that for your property.

16:14.296 –> 16:19.681
And this board would probably be very good for the salespeople that are running regular hotels.

16:19.781 –> 16:23.124
When I say regular, you know, a three night stay, two and a half night stay hotels.

16:23.805 –> 16:25.786
And they’re coming to this and they don’t understand it.

16:25.947 –> 16:30.511
And they’re going to go to where they’re comfortable and they’re going to try to be getting two or three night business.

16:30.631 –> 16:31.491
And that’s the point.

16:31.792 –> 16:33.433
Of course, you’re going to take that business when they come.

16:33.453 –> 16:34.274
But that’s not the point.

16:35.277 –> 16:37.199
And how do you manage that rep?

16:37.239 –> 16:46.365
Like how you that is, I mean, if you you know, if you don’t have a revenue manager, you have to understand that animal and the difference when you’re pricing and the pricing strategy that goes along with

16:46.915 –> 16:47.115
Right.

16:47.195 –> 16:48.837
And I think it’s very important.

16:48.877 –> 16:49.937
Kimberly, you mentioned it.

16:50.198 –> 16:59.144
The biggest potential Achilles heel for owners is not understanding how different this model is than traditional hotels.

16:59.625 –> 17:05.069
And I have a lot of conversation with people around the country, and that seems to be the biggest fear.

17:05.089 –> 17:11.634
There are so many people that are going into this now because they see opportunity, but they don’t appreciate how the opportunity works.

17:11.714 –> 17:14.296
And that’s why I think this is actually at the right time.

17:14.936 –> 17:20.420
And Glenn, I think a super key point is the whole thing about the peer-to-peer aspect.

17:21.081 –> 17:23.543
Because we are not the brands.

17:23.683 –> 17:29.687
We, as peer-to-peer, are not subject to the FDD, which is a franchise disclosure document.

17:30.188 –> 17:31.329
I don’t care my P&Ls.

17:32.426 –> 17:34.387
OK, I could show profitability.

17:34.467 –> 17:39.069
I can show gross operating profit percentages, net operating income percentages.

17:39.449 –> 17:53.095
I can share my development sheets and I’m willing to do that across off names, you know, but but still to really kind of get into the nitty gritty for developers, let’s say that want to understand the profitability and yet the costs.

17:53.835 –> 17:54.716
We can do that.

17:54.976 –> 17:59.919
I mean, it is an educational plethora of opportunities to share.

17:59.939 –> 18:06.003
Again, giving back, sharing, and it’s just going to make people more and more developed.

18:06.736 –> 18:07.997
I love that attitude.

18:08.277 –> 18:12.459
And, you know, Anthony and I, I think both take that same thing with our approach to our careers.

18:12.499 –> 18:17.061
The more successful we can make people around us, the more successful all of us can be.

18:17.101 –> 18:22.143
The fact is hospitality industry is continuing to grow and there’s more opportunity for everyone.

18:22.323 –> 18:24.084
There’s no reason for us not to get all together.

18:24.444 –> 18:26.185
And if you’re good at your, I’m sorry, go ahead.

18:27.625 –> 18:30.967
I was just going to quote Mark Skinner, you know, because currently the,

18:33.760 –> 18:44.064
If you look at paid revenue in the seven to twenty nine day average stays, the extended stay is doing about three point five billion dollars.

18:45.185 –> 18:49.646
Non-extended stay for that seven to nine currently is doing seven billion.

18:50.587 –> 18:55.949
OK, so actually non-extended stay is doing more of the shorter extended stay work.

18:56.721 –> 19:02.185
meaning the opportunities for extended to give the customer exactly what they want is phenomenal.

19:02.706 –> 19:02.986
Okay.

19:03.586 –> 19:04.227
Secondarily.

19:04.267 –> 19:14.895
And if you reverse that, if you look at room nights or rather stays over 30 nights, then the extended stays are doing 3.9 in the non-extended stays.

19:15.175 –> 19:24.903
We’re only doing 1.9 billion, which means that people get it on the super long stays, but in that seven to 29 range tier two and three, basically the,

19:25.843 –> 19:34.511
and how you price your work, there’s such great opportunity for new development because so many people are not getting what they want or need.

19:35.372 –> 19:35.552
Right.

19:35.632 –> 19:47.563
And this is why we see the major brands introducing new products to the marketplace, not just an extended stay product, but now we’re starting to see the segmented part of the business.

19:47.583 –> 19:49.125
Yeah, go for it, Anthony.

19:50.874 –> 19:51.415
I don’t know.

19:51.475 –> 19:57.600
I’m not keeping up with all the new extended stay, but I will tell you this about Staybridge and about Rob and his team.

19:59.021 –> 20:08.190
You go to any market, and I challenge anyone to go to any market right now, and if it’s got a Staybridge in the market, it’s going to be in the top five hotels in your market.

20:08.843 –> 20:15.684
Their service standards, cleanliness, and customer engagement is the best I’ve ever seen from a brand.

20:16.505 –> 20:21.606
And you go, I don’t know now, but in Vegas, the number one hotel in Vegas was the Sabert Suites off the Strip.

20:22.306 –> 20:37.709
And because of service, because of cleanliness, and Rob made me, after 25 years, and you’ve heard this, but 25 years of running hotels in New York City, when I developed that hotel, he made me go to the GM training.

20:38.890 –> 20:41.672
And I was just like, I’m not going to GM training.

20:42.633 –> 20:43.354
I’m not going.

20:44.034 –> 20:45.135
Guess who was at GM training?

20:45.155 –> 20:51.881
And I’m just talking about Sabrage because that’s what I know.

20:53.003 –> 20:57.627
They were really into like doing it the right way.

20:57.647 –> 21:01.450
A lot of brands just kind of pop up and they forget about the service and how to clean a room.

21:01.951 –> 21:04.293
But I was always very impressed with Sabrage Suites.

21:05.814 –> 21:10.995
We are very fortunate on the board to have companies like Hilton, which does the same as IHG.

21:11.055 –> 21:22.918
And although I have a lot of IHG product, I have to say that Hilton, ESA, and the others for the segments that they are in have had that same attitude of quality every time, consistency.

21:24.498 –> 21:28.759
It’s really going to be a benefit as we move forward with a lot more extended stay brands.

21:29.381 –> 21:29.981
I agree.

21:30.021 –> 21:32.502
And there’s some notable brands that are emerging out there.

21:32.642 –> 21:36.763
I like, they’re all, they’re all pretty interesting, but two that immediately popped to mind.

21:36.883 –> 21:41.465
I like what Waterwalk is doing with the live version and the stay version.

21:41.905 –> 21:46.906
So you could get, you can stay up 30 days or you could get an apartment month to month.

21:47.026 –> 21:48.047
I think that’s really unique.

21:48.447 –> 21:55.469
And I like this new LiveSmart Studios, formerly H3 with Hilton, because they’re approaching it different

21:56.149 –> 22:02.033
than everyone has before going for those super extended stays that Kimberly was talking about looking for more.

22:02.874 –> 22:05.635
Well, they had to compete with the apartment hotels, right?

22:05.995 –> 22:17.563
The apart hotels there, you know, that you had to introduce a professional management and brand environment to compete against those that truly don’t know what they’re doing.

22:17.603 –> 22:19.244
So you’re offering loyalty.

22:19.544 –> 22:20.805
We’re all forgetting with things.

22:20.865 –> 22:23.086
It’s like living in an apartment with loyalty points.

22:23.226 –> 22:24.067
It’s amazing.

22:24.627 –> 22:24.707
And,

22:25.365 –> 22:40.975
One of the things I want just to end statistically speaking, but it’s huge and this is great for everyone to know that is considering getting into the segment, is that Smith Travel Star data has the CAGR, which of course is the compound annual growth rate.

22:41.525 –> 22:44.988
at 3% each year through 2025.

22:45.168 –> 22:50.231
So we have a full another, and that just came out, a full another two years of growth at 3%.

22:51.372 –> 23:00.899
And also the extended stay segment was the, it grew more quickly than any other segment after the pandemic.

23:01.460 –> 23:04.382
It was the, excuse me, it was the fastest to recover.

23:05.422 –> 23:05.603
Right.

23:05.963 –> 23:06.043
And

23:06.528 –> 23:26.806
representing a real plurality of all new hotel development owners and investors are really liking this particular model because you need fewer human beings at the property something that everybody’s been struggling with plus you don’t have to sell a room every night if you get a good client that’s going to stay for 30 40 111 days it really simplifies thing when done the correct way

23:32.190 –> 23:36.192
So is this for first-time investors now as well as institutional?

23:36.573 –> 23:41.456
I don’t think we saw a lot of institutional investors in this segment historically.

23:42.056 –> 23:56.366
And I think this might be a barrier of entry for first-time investors to get their feet wet, provided they have the knowledge of how to manage it properly and differently, the extended stay way.

23:56.386 –> 23:59.428
I see there’s an extended stay brand.

24:00.389 –> 24:00.869
I beg your pardon?

24:01.462 –> 24:03.743
Didn’t Blackstone buy an Extended Stay brand?

24:05.063 –> 24:07.484
I think they have Extended Stay America, if I’m not mistaken.

24:07.684 –> 24:09.445
Or they owned it, sold it, bought it again.

24:09.465 –> 24:12.126
I don’t know.

24:12.146 –> 24:16.488
I’m pretty sure that they own that particular brand.

24:17.608 –> 24:19.369
So that’s all really fascinating.

24:19.409 –> 24:21.950
I forgot what my point was going to be that I was going to make.

24:22.050 –> 24:24.851
So I guess we’ll just have to move on.

24:24.871 –> 24:25.571
So…

24:27.799 –> 24:29.521
How do people really get involved?

24:29.621 –> 24:32.423
What do you expect from them when they join?

24:32.483 –> 24:33.604
How does it all work?

24:35.226 –> 24:35.526
Kimberly?

24:37.479 –> 24:38.439
Okay, great.

24:38.519 –> 24:41.682
And I like again, they are able to join.

24:41.762 –> 24:43.823
We do, of course, have our website.

24:44.244 –> 24:45.845
There’s a QR code available.

24:45.865 –> 24:47.566
I could definitely hold up right.

24:47.626 –> 24:48.407
I’ll hold up right now.

24:48.487 –> 24:59.635
But no matter what platform you’re watching on now, I encourage you to go to LinkedIn to the Extended Stay Lodging Association page, otherwise known as ESLA as the acronym is.

25:00.175 –> 25:03.079
and which would take you right to the opportunity to join.

25:03.920 –> 25:09.165
We are really right now partnering with universities and allowing students to become involved.

25:09.205 –> 25:15.072
That was one of Doug’s passions is really ensuring that all of the students have this knowledge going forth.

25:16.013 –> 25:16.193
Right.

25:17.222 –> 25:42.038
correct but our membership is is very uh there’s it’s vast you know it definitely is a wide variety but i encourage everyone to reach out to doug myself or any of the board members directly um i did make a post uh yesterday as well as doug and we’re have a great presence on linkedin um but really the biggest we will be holding town hall meetings

25:42.955 –> 25:45.816
And anyone could join our town hall meeting initially.

25:46.377 –> 25:57.002
And our initial town hall meetings will give potential members of taste of what they’ll get as members in the future will only have access to these icons.

25:57.582 –> 26:03.705
And the list that we have of people that are willing to come on of experts and icons is rather impressive.

26:04.506 –> 26:05.066
Thanks to Doug.

26:06.243 –> 26:15.069
So we plan this series to kind of kick off with, you know, true industry icons that started like, like a Mike Levin style person.

26:15.629 –> 26:15.809
Right.

26:15.849 –> 26:16.169
Hold on.

26:16.229 –> 26:16.910
Mike Levin.

26:18.755 –> 26:30.619
He was way involved in the hospitality industry, most notably overseeing brands that are now part of the Wyndham family and was an integral part in helping create the Asian American Hotel Owner Association as well.

26:30.659 –> 26:31.379
Doug, please continue.

26:32.019 –> 26:33.039
No, exactly.

26:33.059 –> 26:35.520
And so, you know, and we will reach out to others.

26:35.560 –> 26:38.601
They’re the Jim and Hutch of the world that actually were with Jack DeBoer.

26:39.121 –> 26:39.701
Tim’s great.

26:40.001 –> 26:41.982
And now he’s with, you know, Michigan.

26:43.002 –> 26:43.782
Wonderful person.

26:43.802 –> 26:45.863
He’s part of the board, I believe, of Waterwalk.

26:46.523 –> 26:48.909
And excellent extended stay.

26:49.751 –> 26:54.101
You know, he’s a keeper of the flame in many ways because he’s been through all of it.

26:54.862 –> 26:55.722
Yes, for sure.

26:55.762 –> 26:58.523
I got to know Jim years ago, and he’s great.

26:59.063 –> 27:06.584
Jack DeBoer, for those people that don’t know, is the man who created this segment.

27:06.884 –> 27:08.245
He created Residence Inn.

27:08.285 –> 27:09.545
He created Candlewood.

27:09.585 –> 27:11.405
His last product was Waterwalk.

27:11.445 –> 27:15.866
He did Value Place, which is still out in the market.

27:16.266 –> 27:17.446
Why am I blanking on the name?

27:17.526 –> 27:18.487
It’s owned by Choice.

27:18.947 –> 27:20.387
But yeah, so-

27:21.167 –> 27:21.828
Yeah, thank you.

27:22.068 –> 27:30.836
So all of these brands that, you know, really helped get all these companies started were all created by this one gentleman, which is pretty remarkable individual.

27:32.017 –> 27:36.021
And Woodspring, Woodspring runs a 60% gross operating profit.

27:36.682 –> 27:37.302
Unbelievable.

27:39.824 –> 27:40.565
mid-90s.

27:41.745 –> 27:50.670
So there is space not only for this particular product, but so many others that come in that speak to different people.

27:51.170 –> 27:53.611
So this market is here to stay.

27:54.532 –> 27:56.353
ESLA is going to help educate.

27:56.973 –> 28:03.116
We will, as operators, share really interesting information to get people up to speed.

28:05.057 –> 28:08.979
It is, in fact, a secret to none, and we want to spread it as much as we can.

28:09.713 –> 28:17.479
And thank you for sharing the URL, the www.eslo.org.

28:17.899 –> 28:20.381
So how big can this segment be?

28:20.822 –> 28:25.425
And will it inexorably change the hospitality industry as we know it in the future, do you think?

28:25.626 –> 28:31.290
Well, as of today, it only represents about 12% of the entire supply.

28:32.591 –> 28:32.891
Okay.

28:33.171 –> 28:36.514
We only get 4% of the actual business.

28:36.534 –> 28:37.815
It can be extended stay.

28:37.835 –> 28:38.716
Okay.

28:39.338 –> 28:44.020
And so the opportunity is massive for new development.

28:46.241 –> 28:47.261
The pipeline’s strong.

28:47.301 –> 28:47.401
Yeah.

28:48.462 –> 28:57.185
Pipeline’s super strong right now, but I think the key part, it was historically in almost an economy type of product.

28:57.225 –> 29:02.807
And now you’re going, having luxury extended stay being developed and in the pipeline.

29:03.167 –> 29:07.189
So it’s that, it’s just, it’s fascinating in that regard, but going back to,

29:08.252 –> 29:12.694
One of the benefits of joining, never mind our town halls with these icons, right?

29:12.814 –> 29:15.414
You know, just sharing everything with them.

29:15.855 –> 29:18.835
We’re developing, and I am, purchasing packages.

29:19.096 –> 29:22.897
We all know what it costs per key to do an extended stay with a full kitchen, right?

29:22.977 –> 29:23.737
It’s an investment.

29:24.317 –> 29:32.940
So purchasing packages with suppliers, key suppliers, where it’s taking the guesswork for new investors out of what to do.

29:33.440 –> 29:34.741
So we’ll be able to…

29:36.341 –> 29:44.391
introduce them to and have them share these purchasing and packages and operating platforms that are easy for them to follow.

29:44.792 –> 29:47.415
Just kind of be able to do it.

29:47.776 –> 29:52.862
It would be crazy for somebody to get into this part of the business without being part of your membership.

29:54.324 –> 29:54.845
We think so.

29:57.945 –> 29:59.806
I understand.

30:00.027 –> 30:01.628
We have really good dinners too.

30:02.088 –> 30:05.750
For any of those board members watching, our dinners are always very entertaining.

30:06.631 –> 30:09.452
I think definitely Glenn and Anthony should join dinner one night.

30:09.933 –> 30:12.454
I will tell you something.

30:12.995 –> 30:15.016
Hospitality industry folks are fun folks.

30:16.448 –> 30:18.189
And we sure are.

30:18.389 –> 30:23.292
All right, everybody make sure you go to E S L a.org right now.

30:23.473 –> 30:26.975
And while you’re at it, why not go to their LinkedIn page as well?

30:27.055 –> 30:30.257
Give them a follow and tell them no vacancies at you.

30:30.397 –> 30:33.059
Doug, Kimberly, any final words before we wrap up with you today?

30:34.139 –> 30:35.660
No, just a great conversation.

30:35.740 –> 30:39.042
And I’m glad that you share the passion that Kimberly and I do.

30:39.062 –> 30:39.102
Um,

30:40.976 –> 30:47.804
And we want to check back in with you because I think there are just great things to come in so many ways and look forward to seeing everyone at Alice.

30:48.344 –> 30:48.585
Yes.

30:48.905 –> 30:52.128
See you guys next week in LA at the JW.

30:52.169 –> 30:54.651
Always great spending time with you, Glenn and Anthony.

30:54.751 –> 30:58.536
Thank you for the opportunity and everyone travel safely to LA.

30:59.096 –> 31:00.998
And I’ll see you guys later.

31:01.018 –> 31:02.820
Oh, man, that was so much fun.

31:02.840 –> 31:05.342
I love the extended stay market and all the opportunity it has.

31:05.402 –> 31:06.003
You know what I love?

31:06.203 –> 31:07.705
I love watching you.

31:07.725 –> 31:13.571
I don’t know how many people know the history of this industry better than you do.

31:13.731 –> 31:15.533
And I love you pulling out little.

31:15.593 –> 31:15.833
Thanks.

31:16.620 –> 31:18.422
the names and the experiences.

31:18.482 –> 31:22.206
And like, I just love, I’m sitting here going, I’ve been in the business longer than you have.

31:22.687 –> 31:24.949
And you know more about the business from that.

31:25.770 –> 31:27.211
Well, dude, to be fair, right.

31:27.271 –> 31:30.535
You were in this business longer than me, but almost a different business.

31:30.615 –> 31:31.616
Cause I was in the business.

31:31.776 –> 31:35.460
I was in the business of the hotel business where you were running and operating the

31:35.860 –> 31:42.125
hotels and our paths never crossed until I saw you on a TV show once and I said, I got to talk to that guy.

31:42.345 –> 31:43.186
You seem pretty cool.

31:43.626 –> 31:45.587
All right, everybody, make sure you follow us.

31:46.448 –> 31:50.151
Check us out at wherever you get your podcasts, download the show.

31:50.191 –> 31:53.733
And if you’re listening to us right now, why not watch us on LinkedIn?

31:54.053 –> 31:59.617
Watch us at novacancynews.com, Facebook, and all the places you like to interact on social media.

31:59.638 –> 32:00.818
Thanks again for joining us.

32:00.878 –> 32:02.840
And remember, you’ve got one life, so blaze on and

32:04.718 –> 32:05.538
to yourself, Anthony.

32:05.878 –> 32:08.319
Be kind to yourself.

32:11.800 –> 32:16.662
Tomorrow, I’ve got a recorded interview that I did with Raul, the CEO of SH Hotels.

32:16.682 –> 32:20.823
You’ll see how they are putting sustainability first without being preachy.

32:20.843 –> 32:21.663
All right, let’s do that again.

32:21.683 –> 32:22.384
One more time.

32:23.224 –> 32:24.664
Take care.

32:24.684 –> 32:27.925
You’ve got one life, so blaze on, Ed.

32:28.605 –> 32:29.406
Be kind to yourself.

32:29.686 –> 32:30.306
See you all later.

32:30.926 –> 32:33.307
I was looking at my text from Jimmy Taylor because I