InTown Suites, a leader in the budget extended-stay hotel segment, today announced operating results for 2001.
Occupancy in 2001 for the chain’s 53 hotels, which included 13 new properties opened during the year, was 87 percent. By contrast, occupancy for the extended-stay segment in 2001 was 73.7 percent, according to The Highland Group. Despite the severe downturn in the lodging industry after September 11, InTown’s revenue per available room (RevPAR) for stabilized properties declined less than one percent.
“While it was a tough operating environment, our hotels’ strong price-value relationship continued to attract guests throughout the year,” said David Vickers, president of InTown Suites. “Our occupancy was off only slightly in the fourth quarter, but we held the decline in average same store net operating income to less than $500 per property for the 13-week period. Guest loyalty is at an all time-high with the average guest staying more than nine weeks.”
Initial results show signs of an improving year for 2002. InTown Suites recorded 87 percent occupancy chain-wide in January 2002, compared to 83 percent for the same period in 2001. February 2002 occupancy was 92 percent with 11 hotels posting occupancies of 95 percent or higher. “We are pleased to see that our hotels continue to maintain and expand a solid guest base in both a strong and weak economy,” he said. “Room rates have held up well, and we expect to increase rates in the first quarter.”
Vickers said that the company expects to begin construction on two new hotels in the second quarter. The properties, both in Florida, will be located in Tampa (121 rooms) and the West Palm Beach area (121 rooms).
Hotels opened in 2001 are located in San Antonio, Texas (two); Indianapolis, Ind. (two); Phoenix, Ariz. (two); Ft. Lauderdale/ Miami, Fla.; Tampa, Fla.; Tucson, Ariz.; Dallas, Texas; Oklahoma City, Okla.; Salt Lake City, Utah; and Richmond, Va. All 13 of the hotels were profitable by year-end 2001.
“Our in-house construction team has delivered all of our new projects in approximately 10 to 12 months for approximately $35,000 a room, including soft costs,” Vickers said. “Our attractively priced product encourages longer guest stays, which allows us to maintain high occupancies and achieve superior returns.”
A typical InTown Suites property features 121 studio suites and is located in urban and suburban areas on major thoroughfares with high visibility, usually near large concentrations of retail facilities. Each suite measures approximately 300 square feet of space. InTown Suites is a privately held corporation based in Atlanta, Ga., that develops, owns and manages 53 hotels with more than 6,800 rooms in 13 states and 25 major cities.