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New hotel brands that started out with robust expansion plans in better times are now faced with significantly scaling back their efforts. NYLO Hotels, for instance, planned to have 50 properties by 2010; only three will be open by late June.
"Our plan was always to grow by franchising," NYLO CEO John Russell told the New York Times. "We would do the first three to five hotels ourselves, then have a franchise platform to be able to grow aggressively." He says that the brand has more than 40 franchises in the works but only expects to have 30 hotels operating by the end of 2011.
Starwood's two newest brands—Aloft and Element—have also had to adjust their plans for expansion. Aloft was to have 500 global properties open by 2012, but 25 have debuted thus far. Element wanted to have 15 properties up and running this year, but thus far, only three are open.
Source: New York Times
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New Hotel Brands Scale Back Expansion
May 13, 2009New hotel brands that started out with robust expansion plans in better times are now faced with significantly scaling back their efforts. NYLO Hotels, for instance, planned to have 50 properties by 2010; only three will be open by late June.
"Our plan was always to grow by franchising," NYLO CEO John Russell told the New York Times. "We would do the first three to five hotels ourselves, then have a franchise platform to be able to grow aggressively." He says that the brand has more than 40 franchises in the works but only expects to have 30 hotels operating by the end of 2011.
Starwood's two newest brands—Aloft and Element—have also had to adjust their plans for expansion. Aloft was to have 500 global properties open by 2012, but 25 have debuted thus far. Element wanted to have 15 properties up and running this year, but thus far, only three are open.
Source: New York Times
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