- G6 launched its new Studio 6 Plus brand.
- It aims to fill a gap in the extended-stay segment.
- Atlanta’s Natson Hotel Group to develop 15 properties.
G6 HOSPITALITY STARTED its annual franchise conference in Cancún, Mexico, with the announcement of a new brand, Studio 6 Plus. The new design, under the theme “Live Where You Stay,” seeks to fill a gap in the extended stay market.
Studio 6 opened 35 locations last year, and in last four months opened more than 35 locations as well, said Ritesh Agarwal, G6 chairman and group CEO of its parent company PRISM. The inspiration for Studio 6 Plus came from the company’s discovery of open space between class C apartments and the Studio 6 segment and the upscale segment of $65 to $70 RevPAR.
“Our expectation is with Studio 6 Plus we create a brand and a product which resolves this gap,” Agarwal said. “It allows a healthy price difference from $45 to $65 in terms of RevPAR difference, it allows G6 to move up. Every time G6 moves up, it helps everybody.”
Agarwal said Studio 6 Plus would be new build hotels initially. He also said he understood some owners would be concerned about getting enough returns on new hotels.
“My request to you is to be a path breaker. A lot of times, we end up buying preexisting buildings from the ones who built out for the first time,” he said. “If the economics work, with an open mind, please just listen to the economics of investment to return. If it works, it works, it works. If it doesn't work, we understand, but they are very smart investors putting the capital behind it.”
No business stays flat, Agarwal said.
“It either goes up or it goes down, at G6 we only understand one way, which is up,” Agarwal said. “So we are going up with Studio 6 Plus here today and over the next few months and years, I hope you will see this in an exit next to you.”
Taking the first step
Agarwal introduced Sam Patel, CEO of Natson Hotel Group, who has signed to develop 15 new Studio 6 Plus hotels. Atlanta-based Natson already owns and operates more than 70 G6 properties.
“He’s somebody who's not just saying things. He's written now close to a $200 million commitment as an outcome of these 15 locations,” Agarwal said.
Patel said he had confidence in the new brand as well as Agarwal.
“Ritesh is a good friend. He is our fellow Indian, but I am not investing in this brand because he is a fellow Indian, but because this brand makes profit,” Patel said. “Sometime you will understand that taking risk pays off.”
