ESA’s Greg Juceam on New Select Suites Brand

At The Lodging Convention 2022, LODGING had the prospect to sit down with Extended Remain The us (ESA) President and CEO, Greg Juceam, to discover extra about ESA’s newly launched Decide on Suites manufacturer, whose appeal to much more value-aware visitors may well be witnessed as a counterpoint to the Premier Suites brand it released just a year back at a higher selling price issue. Prolonged Remain The us Pick out Suites introduced with approximately 100 properties in 30 distinctive states. Juceam mentioned, “We’re essentially launching at scale these 100 properties aren’t just signed, they are open, all set for enterprise, and element of the system.”

What is the story driving this model?

When our 27-year-old brand name commenced out, we thought there was this one monolithic extended-continue to be phase. Despite the fact that our core brand name is properly recognised and has been extremely thriving, more than time, we’ve gotten to know the market and the shoppers greater. We’ve figured out that prolonged-continue to be can be tremendous luxurious all the way down to tremendous economic system. In recognition of these differences, a minor beneath a year in the past, we launched a more upscale prolonged-keep brand—Extended Continue to be The united states Leading Suites—because we experienced identified a sizeable amount of possibility with that promptly adjacent less-price tag-sensitive purchaser. With this third addition to our manufacturer segmentation, we’re just genuinely tapping into additional marketplaces in which our model historically was not able to go, at a price tag level slightly under our main presenting from an ADR standpoint.

The addition of the Extended Stay The us Find Suites brand name to our portfolio will let our friends and franchisees to decide on from three diverse brand names at a few different selling price factors. For franchisees, the new model has a powerful benefit proposition and economical efficiency.

What are the differentiators that set ESA resorts aside from other people in the section?

To start with, contrary to bigger platforms enjoying in the prolonged-continue to be room, with models that could symbolize a one-digit share of total distribution and earnings, we are 100 p.c centered on serving the wants of guests remaining 7 or much more nights. All ESA models have complete-company kitchens with full-size fridges and cooktops. It’s not likely that the big companies dabbling in the area would be uniquely tailoring their offering—whether it’s the reservation delivery system or even how they provide friends —for people being 7 or much more evenings.

What are the distinct attributes that enable a lessen cost point for buyers and a realistic ROI for franchisees?

Very first, this is a conversion brand name with an functioning product that lets for additional labor personal savings. As opposed to our other houses, which are open up 24/7, it will shut down at evening and open in the early morning, like other homes in this phase. We’re also saving expenditures by not furnishing breakfast.

Can you describe the launch as it is occurring and its effect on entrepreneurs and franchisors?

We are equipped to kick this off with 100 accommodations correct from the start—basically launching at scale—because we obtained about 120 lodges in February of about 120 inns across 30 states. Though we very own most of them, they are not but managed or branded by us that will have to materialize steadily. On the other hand, compared with makes that are predominantly franchisers but may possibly individual or manage some motels, we are in all 3 areas: we personal, deal with, and franchise, and, with this start of 100 motels of our individual, we are showing franchisees that we as franchisors have pores and skin in the sport, that we have to try to eat our personal cooking, so to speak. They see that if we build a brand regular, we have to dwell by the criteria we set in put. This is a thing that instills confidence in the upcoming of the manufacturer, some thing I regard as a considerable differentiator.