Timing is everything, and My Place Hotels of America is hoping this is the right time to offer hoteliers value and resources that many desperately need in the current environment. The company today is launching a new conversion brand for upper-midscale and upscale select-service and extended-stay hotels called Trend Hotels & Suites.
“As we’ve seen with the success of My Place Hotels, a brand that was conceptualized on the tail end of the Great Recession, a well-timed idea holds great value,” said Ryan Rivett, president/CEO of My Place Hotels of America. “Hoteliers were generally conservative back then as they are now and I expect that to continue at this point in the cycle. While that may be a disadvantage for major brands, I expect that conservative outlook to be an advantage for My Place Hotels of America.”
Trend Hotels & Suites addresses younger and middle-aged hotel products, allowing their franchise affiliation to be more valuable at mid-life, according to the company. Instead of the increased franchise-related costs that many of these hotels have on their economic horizon, a Trend conversion will allow them the flexibility to work off their strengths in market share and loyalty while reducing franchise-related costs.
With the goal of efficiently converting and supporting stabilized hotel assets, My Place says Trend will primarily lend itself to hoteliers who are reassessing their franchise affiliation in search of a more balanced relationship of support and contribution.
While Trend is designed to welcome a variety of participants spanning diverse market and demographic profiles, the franchise company has established basic standards and qualifications for “high-quality and well-operated” properties opened in 2005 or later.
Key elements to Trend’s franchise offer include:
- 5 percent franchise royalty fee (gross room revenue)
- Franchises acquired before Sept. 1, 2020, will incorporate a provision for royalties to be zero for 30 calendar days after the effective conversion date before graduating to 5 percent.
- Immediate deployment of resources and departments from the My Place Hotels of America upon signing.
- My Place Hotels of America will tailor the Trend training experience for teams in transition to the brand while supporting further staff development through ongoing education initiatives.
As of June 1, 2020, My Place Hotels are open in 56 markets across 27 states with the largest concentration located centrally in the U.S. The company expects that Trend will allow My Place to expand to areas with higher barriers of entry for new construction products like a My Place Hotel.
Rivett said he anticipates the first Trend to go live mid-July to early August.
“I expect conversations over the next 30-60 days to give us indication of pace,” he said. “As for maintaining the pace for My Place Hotels in tandem with Trend, I do anticipate the development ratio being 1:1 or close to that by this time next year.”
Trend will greatly expand My Place’s market penetration across America, according to Rivett.
“The major brands in the hotel industry have grown more rapidly and less efficiently than ever over the past 15 years while the value of their reservations, loyalty and brand support systems has not grown proportionately,” he said. “At a time when support and guidance are needed most, but conventionally in limited stock, we truly believe Trend Hotels & Suites will set a new standard for the franchising experience.”
My Place’s collection of resources will provide immense support and guidance for franchisees, said Ron Rivett, chairman of My Place Hotels of America.
“I can’t think of a better time than now to leverage the incredible support structure we have developed and maintained over the years at My Place Hotels of America. With the launch of Trend Hotels & Suites, we now have the opportunity to provide great value for the many more hoteliers and travelers across our country,” he said. “Trend will not only stand out for its heritage in relation to our brand, but it will stand out for the way it supports its owners, operators, and guests.”