Friday 28 August, 2020 TOP STORY More than 80 IHG extended stay properties US: 103 IHG properties in the US, Canada and Puerto Rico are to be reflagged under the Sonesta brand. The properties involved include more than 80 extended stay hotels currently operating under the Staybridge Suites and Candlewood Suites brands. LATEST NEWS If you missed our last newsletter....check out the stories below
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• The falling out between Service Properties Trust and IHG has created a major new player in the US extended stay space.
SPT has accused IHG of not paying millions of dollars in guaranteed returns and is making good on its threat to cut ties with the global hotel giant and reflag 103 properties across the US, Canada and Puerto Rico, which formerly carried IHG brands.
More than 80 of these properties are extended stay hotels, which were operating under the Staybridge Suites and Candlewood Suites brands. These, and the other properties, will be converted to various flags under the Sonesta group - the Royal Sonesta, Sonesta and Sonesta ES Suites brands.
ES Suites will find itself propelled in to the big time with such a sizeable and instant boost to its portfolio, and the brand will be looking to capitalise on this momentum.
Service Properties Trust holds a 34 per cent stake in Sonesta, so the synergies are there for all to see. And while there are inherent risks in switching properties from the well known brands of a global player, SVT says that 16 former IHG hotels that it transitioned to the Sonesta portfolio in 2012 have collectively seen a 14.4 per cent and 10.3 per cent improvement respectively in total annual revenue and EBITDA since the switch.
Market conditions are obviously very different now so it will be interesting to see how these properties fare.
On the subject of new and growing brands, I'm always encouraged to see ambitious start-ups but can't help thinking that new Indian coliving company COVIE should probably have had second thoughts about its moniker. This time last year it probably seemed like a great idea, combining the co-everything principle with the French word for life, but in the light of the last six months I think they should have gone back to the drawing board.
• Don't forget to register for our next Urban Living webinar, which takes place on Wednesday September 2nd BST, when we will be discussing: Flex rentals - investing in innovation
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