Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently assistant editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers.
Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
THE ECONOMIC DOWNTURN caused by the COVID-19 pandemic has left an opening in third-party hotel management that Ashwin Patel and his partners plan to fill. They have launched a new company, Iridescent Hotels, that will focus initially on managing distressed and in receivership properties that are repositioning or closing.
Iridescent Hotels will focus on private, institutional and financial clients separate from Ashwin’s existing company, Southwest Hospitality Management in Mesa, Arizona. Ashwin, who also is a former AAHOA chairman said the current situation played a part in the decision to form the new company.
“Over the last few years, we have had a lot of management companies, midsize and large size, consolidating into bigger companies, merging,” he said. “And then, during this COVID-19 period, a lot of them lost their staff because the revenue streams were not there and many people were furloughed. We looked at it and said, ‘Hey, what is our industry missing? And what can we do as a management company that is going to be different and still very timely?’”
Many existing companies do not offer complete service covering everything from pre-opening management, technology services, renovation services, support on PIPs and acquisitions or disposition solutions.
“They don't bring all the solutions at the same time,” he said.
Iridescent Hotels will be a one-stop-shop, Ashwin said.
The team
Ash’s partners in Iridescent Hotels are Tim Walker, former president of Island Hospitality and CEO of Innkeepers USA Trust, over operations; Gary Mills, former vice president of real estate for NewcrestImage, over real estate and development; Ajit Patel, CFO at Southwest Hospitality, over finances; Christopher Puntureri, over sales and marketing consultant; and Raj Chauhan over information technology.
“The talent pool that we put together has operated many, many hotels,” Ashwin said. “We have close to 150 years in time management experience.”
NewcrestImage experimented with third-party management two years ago. Mills said the new company has a different approach.
“Iridescent has all the bases covered and is focused on adding value to hotel owners who are seeking a strong operating partner,” he said.
Walker said Iridescent Hotels’ multi-prong approach will give it an advantage.
“Providing a one-stop-shop management arm with select disciplines around people, processes and financial reporting puts Iridescent Hotels in a position to add value to debt holders, investors, special servicers and private owners that most Industry leaders have lost sight of,” he said.
The market’s needs
The stresses being placed on the market by the pandemic also have given rise to a new opportunity as the number of hotels entering delinquency rises. Ashwin said almost 50 percent of the industry is in distress.
“If you look at the CMBS market news, if you look at the special servicers that have been engaged, chances are that there may be another 3,000 to 5000 hotels that may go into special servicing and be given to receivers to transition over again,” he said.
There are not enough management companies to meet that demand, Ashwin said.
“When some of these distressed assets come to the market, the processes are directed through the court systems. A receiver comes in play and there are some instructions by the court systems,” Patel said. “Most of these hotels, in order to survive, have already cut their staff and cut their sales and marketing staff and are probably not even responding to RFPs and all the other things that are happening.”
Iridescent Hotels’ team is familiar with ownership of hotels, putting investor groups together and other aspects of third-party managing these distressed properties.
The method
“We go in obviously to evaluate these hotels. We have a team of individuals that are ready to take over an asset, evaluate the assets, evaluate the current staff on board, evaluate the prior businesses, prior accounts, and evaluate the performance and budgets and everything,” Patel said.
They look at the assets in terms of risk management, ensure brand standards are being followed and work with the brands.
“We want to make sure that we're not overstaffed and the labor models are not out of whack,” he said. “We bring back the business at the hotel, work against our competitive set, and bring value back to the hotel so that when it does transition, when the lender and the receivers are ready to transition the hotel, that they're getting maximum value out of it.”
One specific challenge unique to the current environment is the existence of more stringent cleaning protocols from the Centers for Disease Control and Prevention, the Occupational Safety and Health Administration and local health departments, as well as from brands, put in place to fight COVID-19. Ashwin said Iridescent Hotels will oversee the implementation of those protocols at hotels it is contracted to manage.
“We make sure that the staff is properly trained and they have the proper equipment in order to manage liability, because right now in the COVID era, Congress has still not passed legislation to indemnify businesses across the country from COVID lawsuits,” Ashwin said. “There already over 2000 plus lawsuits across the country that are COVID related and they are exponentially going up as the days go by.”
Ashwin said there are times when some lenders do choose to shutter a hotel, but then they don't have a third-party asset manager who can oversee the property. Even an empty hotel requires some asset preservation to prevent the risk of deleterious effects, such as mold build up.
“Let's say a hotel is shuttered because it financially is just not worth it to keep it open until it's disposed of, but that could take three months, that could take six months, depending on the courts,” he said. “And the courts are going to be overwhelmed with the number of delinquencies, not just on the hospitality side.”
Ashwin said the staff at Iridescent Hotels also has changed their work methods to suit the COVID-19 world.
“We've also now adapted to being remote. All of our staff will not be working out of an office in Keller, Texas, where we're based, but a majority of them will be actually working in the field and working remotely,” he said. “We think that this remote working and working from home has both pros and cons, but it seems like there are more pros than cons.”
A fresh start
While Southwest Hospitality also has a third-party management wing, Ashwin said there were several reasons to start Iridescent Hotels as a separate entity.
“We figured that it would be better to create a completely new arm with completely new talent that had incentives to be a part of a new company,” he said. “We wanted to start fresh with a fresh name, fresh logo and a new set of advisors.”
So far several potential clients have expressed interest in the new service.
“Key Bank has already informed us that were one of their preferred third-party vendors when some of their assets do come to fruition,” he said. “We have already lined up clients on the receiver and the lender side that when these assets do come to fruition.”
Their model may change in the future as the U.S. overcomes the pandemic and the coinciding economic downturn. Ashwin said they will be ready to transition into more standard third-party contracts with other types of companies.
“The COVID contracts are going to be temporary, they'll come and they'll go, but our talent pool and our company pillars will basically be solid for future growth as a true third party manage,” Patel said.
Choice Hotels International reported Q2 net income of $81.7 million.
Domestic RevPAR fell 2.9 percent due to macroeconomic conditions.
Extended-stay portfolio rose 10.5 percent YoY, with a domestic pipeline of 43,000 rooms.
CHOICE HOTELS INTERNATIONAL reported second-quarter net income of $81.7 million, down from $87.1 million a year earlier. Its forecast for the year remained positive, but was downgraded some to account for changes in macroeconomic conditions.
The company’s global pipeline exceeded 93,000 rooms, including nearly 77,000 in the U.S. Its global system size grew 2.1 percent, including 3 percent growth in the upscale, extended-stay and midscale segments, Choice said in a statement.
“Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy,” said Patrick Pacious, president and CEO. “We are especially pleased with our strong international performance, where we have achieved significant growth and accelerated global expansion through a recent strategic acquisition, the signing of key partnerships, and entry into new markets. With more diversified growth avenues, enhanced product quality and value proposition driving stronger customer engagement and a leading position in the cycle-resilient extended-stay segment, we remain well-positioned to deliver long-term returns for all our stakeholders.”
Domestic RevPAR declined 2.9 percent, reflecting macroeconomic conditions and a difficult comparison with 2024 due to the timing of Easter and eclipse-related travel, the statement said. Excluding those effects, RevPAR fell approximately 1.6 percent. Meanwhile, the domestic extended-stay portfolio outperformed the broader lodging industry by 40 basis points in RevPAR, while the economy transient portfolio exceeded its chain scale by 320 basis points.
Adjusted EBITDA rose 2 percent to $165 million, or $167 million excluding a $2 million operating guarantee related to the Radisson Hotels Americas acquisition. Adjusted diluted EPS increased 4 percent to $1.92, the statement said.
Expansion and development
The domestic extended-stay portfolio grew 10.5 percent year over year, with a pipeline of nearly 43,000 rooms as of June 30, Choice said. The combined domestic upscale, extended-stay and midscale portfolio grew 2.3 percent. WoodSpring Suites expanded 9.7 percent to nearly 33,000 rooms and ranked first in guest satisfaction among economy extended-stay brands in the J.D. Power 2025 study. The domestic economy transient pipeline increased 8 percent to more than 1,700 rooms.
Choice acquired the remaining 50 percent interest in Choice Hotels Canada for approximately $112 million in July, funded through cash and credit. The deal expanded its Canadian brand portfolio from eight to 22 and added 327 properties and more than 26,000 rooms. The business is expected to contribute approximately $18 million in EBITDA in 2025.
International activity included a renewed master franchise agreement with Atlantica Hospitality International in Brazil for more than 10,000 rooms; a direct franchise deal with Zenitude Hotel-Residences in France, which nearly tripled room count and two agreements with SSAW Hotels & Resorts in China. These include a 9,500-room distribution deal for 2025 and a master franchise agreement projected to add 10,000 rooms over five years.
Global net rooms for upscale brands increased 14.7 percent year over year, the statement said. The pipeline for these brands rose 7 percent since March 31 to nearly 29,000 rooms.
2025 outlook
Choice revised its RevPAR outlook to reflect more moderate domestic expectations due to macroeconomic conditions, the statement said. The adjusted EBITDA forecast includes a $6 million contribution from the Choice Hotels Canada acquisition for the remainder of 2025. It also reflects the $2 million Radisson-related operating guarantee payment incurred in the second quarter.
Net income guidance was lowered to a range of $261 million to $276 million, down from $275 million to $290 million. Adjusted net income remains at $324 million to $339 million.
Domestic RevPAR growth was revised to between negative 3 percent and flat, compared to the earlier range of negative 1 percent to positive 1 percent. The global net system rooms growth projection remains at approximately 1 percent.
In May, Choice reported 2.3 percent year-over-year growth in domestic RevPAR for the first quarter.
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G6 Hospitality and Galaxy Hotels Group are expanding Motel 6 and Studio 6 in the U.S.
Galaxy said G6 brands outperform others in guest satisfaction and value.
One Galaxy hotel generates $8–10M annually; the full G6 portfolio is expected to reach $50M.
G6 HOSPITALITY AND Galaxy Hotels Group are now working to expand the Motel 6 and Studio 6 footprint in the U.S. About 10 Galaxy-managed hotels, totaling more than 1,300 rooms, will operate under the G6 brands, with more to follow.
G6 brands consistently outperform others in guest satisfaction and value, said Galaxy, which rejoined the G6 network after a short break.
“This partnership marks a new chapter in our mission to deliver modern, value-driven hospitality, as we now proudly rejoin G6 Hospitality," said Carlos Cuevas, Galaxy Hotels' COO. "Having previously moved from Choice Group/Park Inn by Radisson, we’ve closely compared the performance of various franchises. Our experience and data show that G6 brands consistently outperform others in guest satisfaction and value. This is why we’re back."
Recent additions include Studio 6 Suites Las Vegas with 308 rooms, Motel 6 Las Vegas – I-15 Stadium with 139 rooms and Motel 6 Las Vegas – Boulder Highway with 160 rooms, the companies said. Studio 6 Suites Las Vegas on the Strip, with more than 300 rooms, will be one of the largest Studio 6 hotels in the U.S., while Motel 6 Las Vegas is also near the Strip and Allegiant Stadium. The portfolio also includes Motel 6 hotels in Modesto, San Jose and Santa Rosa, California and Lakewood, Fort Collins, Thornton and Colorado Springs, Colorado.
Texas-based Galaxy Hotels Group, founded in 1999 and led by CEO Jagmohan “Jag” Dhillon, operates more than 41 hotels in the U.S. One Galaxy hotel in the G6 network generates $8 to 10 million in annual revenue. The full G6 portfolio is expected to reach about $50 million.
OYO CEO Ritesh Agarwal is chair of G6 Hospitality and Sonal Sinha is its CEO. OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans 150 more by year-end.
Marriott International ended Q2 with a record pipeline of about 3,900 properties and more than 590,000 rooms.
Global RevPAR rose 1.5 percent, including a 5.3 percent gain in international markets.
Net income slipped 1 percent to $763 million; 17,300 net rooms were added.
MARRIOTT INTERNATIONAL’S GROWTH continued in the second quarter, according to the company’s recent earnings report. Along with its active pipeline, the company saw rising revenue and launched a new brand.
Marriott’s global development pipeline stood at approximately 3,900 properties with more than 590,000 rooms at the end of the second quarter. The company added about 17,300 net rooms, signed nearly 32,000 and reported more than 70 percent of signings and 8,500 of added rooms in international markets.
“Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty,” said Anthony Capuano, Marriott president and CEO. “Global RevPAR increased 1.5 percent in the second quarter, primarily driven by the leisure segment. International RevPAR rose more than 5 percent, with strong growth in APEC and EMEA. In the U.S. and Canada, RevPAR was flat year over year with continued strength in the luxury segment offset by a decline in select-service demand, largely reflecting reduced government travel and weaker business transient demand. Adjusting for the Easter holiday shift, U.S. and Canada RevPAR increased by nearly 1 percent.”
Base management and franchise fees rose nearly 5 percent to $1.2 billion, driven by RevPAR growth, room additions and co-branded credit card fees, the statement said. Reported operating income increased to $1.236 billion from $1.195 billion, while net income declined 1 percent to $763 million. Reported diluted earnings per share were $2.78, up from $2.69.
Adjusted operating income rose to $1.186 billion from $1.120 billion, Marriott said. Adjusted net income increased to $728 million from $716 million and adjusted diluted EPS rose to $2.65 from $2.50. Adjusted EBITDA grew 7 percent to $1.415 billion.
Pipeline and brands
Marriott added about 17,300 net rooms in the quarter, including over 8,500 internationally, bringing its global system to more than 9,600 properties and around 1.736 million rooms. It signed nearly 32,000 rooms, over 70 percent in international markets. Conversions made up about 30 percent of signings and openings in the first half. Full-year net rooms growth is expected to approach 5 percent.
Marriott Bonvoy membership also reached nearly 248 million by the end of June, the statement said.
“Development activity remained robust,” Capuano said. “We signed nearly 32,000 rooms, more than 70 percent of which were in international markets, and our quarter-end pipeline stood at a record of more than 590,000 rooms. Conversions continued to be a key driver of growth, representing approximately 30 percent of our room signings and openings in the first half of this year. We still expect full year net rooms growth to approach 5 percent this year.”
The development pipeline included 3,858 properties and more than 590,000 rooms, with 234 properties and over 37,000 rooms approved but not yet under contract, the statement said. The pipeline included 1,447 properties with more than 238,000 rooms under construction or conversion. Over half of the pipeline rooms were outside the U.S. and Canada.
The company launched Series by Marriott, a regional collection brand for midscale and upscale segments, and announced its first agreement to affiliate India’s Fern portfolio. Marriott also completed the acquisition of citizenM. However, the citizenM and Series by Marriott additions were not included in the pipeline total.
Capuano said both brands are expected to support international expansion.
2025 outlook
Marriott’s outlook assumes no major shifts in macroeconomic conditions. The company expects RevPAR to be flat to up 1 percent in the third quarter of 2025 and grow 1.5 to 2.5 percent for the full year. Net rooms growth is projected to approach 5 percent in 2025.
Gross fee revenues are expected to total $1.310 billion to $1.325 billion in the third quarter and $5.365 billion to $5.420 billion for the year. Adjusted EBITDA is forecast at $1.288 billion to $1.318 billion for the third quarter and $5.310 billion to $5.395 billion for the full year.
OYO added more than 150 U.S. hotels in early 2025 and plans 150 more by year-end.
Ten additions have more than 100 rooms, reflecting a focus on high-inventory properties.
It is targeting urban and suburban markets in the Sun Belt and Great Lakes regions.
HOSPITALITY TECHNOLOGY COMPANY OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans to add 150 more by year-end. The additions span Texas, Virginia, Georgia, Mississippi, California, Michigan and Illinois.
The company is focusing on high-inventory properties and has added 10 with more than 100 rooms, OYO U.S. said in a statement.
“2025 is shaping up to be a busy year for all of us at OYO,” said Nikhil Heda, head of development, OYO U.S. “We’re helping hotel owners drive revenue and improve operations through our technology. Our growing portfolio gives travelers more options, and momentum on our direct channels shows OYO is becoming a trusted brand for new and returning guests.”
Recent additions include the 400-room Palette Sunset Waves Resort in Myrtle Beach, the 130-room Capital O Kings Inn in Memphis, the 130-room Travellers Inn by OYO in Douglas, Georgia, and the 140-room Jackson Hotel and Convention Center in Jackson, Tennessee. All were previously independent hotels.
The company is exploring urban and suburban markets across the Sun Belt and Great Lakes regions, targeting areas with high demand and growth potential, the statement said.
OYO CEO Ritesh Agarwal, who also chairs G6 Hospitality, the parent of Motel 6 and Studio 6, recently launched a contest to rename Oravel Stays, offering a $3,500 prize.
Choice launched two campaigns to boost bookings across its four extended-stay brands.
Based on guest feedback, the campaigns focus on efficiency, cleanliness, value and flexibility.
They will run through 2026 across social media, Connected TV, digital display and online video.
CHOICE HOTELS INTERNATIONAL launched two marketing campaigns to increase brand awareness and bookings across its four extended-stay brands. The "Stay in Your Rhythm" campaign promotes all four brands by showing how guests can maintain daily routines, while "The WoodSpring Way" highlights the service WoodSpring Suites staff provide.
The company has more than 550 extended-stay locations open, 51 under construction and more than 350 in the pipeline under Everhome Suites, MainStay Suites, Suburban Studios and WoodSpring Suites, Choice said in a statement.
"As leaders in the extended stay segment, Choice Hotels has long understood that this category is unlike any other in the hospitality industry, defined by distinct guest expectations that we continuously strive to exceed," said Noha Abdalla, Choice’s chief marketing officer. "These first-of-their-kind campaigns reflect our deep understanding of why people stay longer — from work assignments and relocations to life transitions and personal journeys. No matter the reason, we know our guests aren't looking to escape their routines; they're looking to maintain them. That's why we take pride in our unique position to offer what matters most: consistency, comfort and connection."
Both campaigns are based on research and guest feedback showing travelers prioritize efficiency, cleanliness, value and flexibility, the statement said. They will run through the rest of the year and into 2026 across paid social media, Connected TV, digital display and online video.
The "Stay in Your Rhythm" campaign shows how Choice's extended-stay brands support routines with in-room kitchens, laundry, fitness centers and pet-friendly options, Choice said. It focuses on daily habits like making coffee, cooking, walking the dog, or exercising.
"The WoodSpring Way" highlights how property teams support guests by providing home-like conveniences, the company said. General managers in Chicago, Denver, Atlanta and Orlando are featured for creating a consistent guest experience and welcoming all guests, including pets.
"We've designed our extended stay properties to ensure we provide guests with everything they need when circumstances take them away from home for weeks at a time," said Matt McElhare, Choice's vice president for extended stay brands. "Through the launch of our campaigns, we aim to educate the growing population of extended stay travelers on how our brands offer the best value in the industry, while also highlighting the culture of our flagship brand, WoodSpring Suites, which has consistently set the standard for guest satisfaction in the segment. We're especially thankful to our owners and management company teams who help build and sustain this culture on property, consistently delivering a great guest experience."