Skip to content

Search

Latest Stories

Sonesta sees strength in extended stay

The decline in international travel remains a key challenge

Sonesta Simply Suites prototype focuses on extended-stay design

Sonesta’s extended-stay brands, Simply Suites and ES Suites, remain strong even as more travelers turn to economy hotels, said Brian Quinn, the company’s chief development officer.

Photo credit: Sonesta International Hotels Corp.

What is Sonesta’s extended-stay hotel strategy?

SONESTA INTERNATIONAL HOTELS Corp.'s extended-stay brands, Simply Suites and ES Suites, continue to perform well, even as travelers shift toward economy hotels during challenging economic times, said Brian Quinn, Sonesta’s chief development officer. The company remains focused on evolving its lifestyle and luxury brands, with a strong emphasis on F&B.

However, the decline in international travel remains a significant challenge for the industry.


“Extended stay continues to be a juggernaut. We’ve got two offerings under Sonesta—Simply Suites in the midscale segment and ES Suites in upscale. When the economy wobbles, extended stay often benefits. People scale down a bit, and this segment holds strong. Similarly, while the economy segment had a strong run and has recently come back to earth, there’s still room for growth,” Quinn said during an interview at AAHOA’s 2025 Convention and Trade Show.

He also discussed the Simply Suites prototype launched at Hunter.

“We’ve been working with owners to optimize sites by exploring options like orienting the building lengthwise or choosing between three and four stories,” he said. “It’s fully digital and AI-driven—the three-story version offers 89 rooms, and the four-story about 122, all on less than two acres. The goal is to maximize revenue potential for owners.”

Key developments

Quinn spoke about preparing Sonesta’s owned assets first and holding themselves accountable before expecting the same from franchisees.

“We’re investing about $200 million in hotel improvements this year despite all the uncertainties,” he said.

On development, Quinn shared updates on two major projects in Miami.

“We’ve got a 336-room James hotel coming up in downtown Miami,” he said. “It’ll be the tallest building in the city and will feature a private club, spa, fitness center and rooftop amenities. We’ve just finalized the capital and structure to make it a brand-in-residence.”

He also announced plans to renovate the Nautilus property on Miami Beach.

“Our affiliated company acquired it for about $175 million,” Quinn said. “That’ll be another James, this time right on the ocean—an exciting step forward for the brand.”

Quinn spoke about executing Sonesta’s playbook focused on being fast, friendly, and flexible. He emphasized the importance of franchising with an owner’s perspective, a point also highlighted on the main stage.

“When we set brand standards, we implement them ourselves,” he said.

He reflected on the company’s rapid growth, noting it now manages just under 1,200 hotels, up from fewer than 50 five years ago.

“We’re following the playbook. First, we integrated finance, legal, and HR,” Quinn said. “Over the last year and a half, we’ve unified everyone on one reservation system and a single loyalty program.”

Sonesta’s loyalty program, Travel Pass, now spans 13 brands, including America’s Best Value, Signature, and Red Lion by Sonesta.

“We cleaned up our brand portfolio too, removing a few brands while others are expanding,” he said. “It’s a bit counterintuitive but strategic.”

The company ran a successful process across 114 hotels put up for sale, attracting 3,040 bidders, Quinn said.

“We reached our target price and are now finalizing purchase and sale agreements, which is incredible,” he said.

Construction lags post-COVID

Quinn said the hotel industry has yet to return to a normal construction cycle post-COVID.

“Inflation was the first major headwind, and now people are stalling a bit, waiting to see how much longer this uncertainty will last and what costs will ultimately look like,” he said. “That said, I think most are being very deliberate and cautious in their decision-making.”

“At some point, we have to figure out how to be more welcoming,” he said. “International travelers might only be a small share, but they’re incredibly hard to replace. That’s a big reason why the West Coast—places like Portland, Seattle, and San Francisco—continues to struggle. We lost all the inbound traffic from China, and you simply can’t make that up.”

Quinn noted he initially expected the market to start turning but didn’t foresee a second wave of disruption.

“I think the Fed gets it, they’re not going to mess with rates unnecessarily,” he said. “But still, there are real headwinds for new construction. That said, I always remember: in previous downturns, during the dot-com bubble, the real estate crash, 9/11, the people who moved first and took risks came out ahead. First movers tend to see better returns.”

He believes the operational discipline gained during the pandemic will continue to serve the company well.

“The muscles we built during COVID will help us navigate this moment too,” he said. “Hopefully, the environment stabilizes soon.”

Despite the uncertainty, Quinn said the fundamentals of hospitality investment haven’t changed.

“We know people want to be near the water,” he said. “They want to be in downtown locations. They want walkable food and beverage. If you're off an interstate, you need fuel and food nearby. These basics haven’t changed, and we’re getting better at conversions across the board.”

Quinn said the AAHOA convention has been successful and that New Orleans has been an excellent host city this year.

“Whether we do it in New Orleans or Las Vegas, we tend to get a strong turnout,” he said. “In these turbulent economic times, it’s important that we come together and speak with one voice. We’re using our collective influence to inform policymakers and others about the real impacts on travel and tourism. Hopefully, we’ll find our way through these challenges. As we said from the main stage, resiliency is part of our DNA.”


More for you

Travel & Tourism Deals Fall 8% Globally
iStock

Report: Travel and tourism deals down 8 percent

Summary:

  • Global travel and tourism deal activity fell 8 percent YoY in H1 2025.
  • Venture financing dropped 25 percent and private equity fell 20 percent.
  • North America recorded a 10 percent decline while Central America dropped 12 percent.

THE GLOBAL TRAVEL and tourism sector recorded an 8 percent year-on-year decline in total deal activity during the first half of 2025, according to market data firm GlobalData. Reduced investor appetite was seen across major deal types: mergers and acquisitions, private equity and venture financing.

Keep ReadingShow less
Vision Hospitality Hosts Red Sand Project in Chattanooga, Tennessee
Photo credit: Vision Hospitality Group

Vision hosts Red Sand Project against human trafficking

Summary:

  • Vision held its Red Sand Project to combat human trafficking in Chattanooga, Tennessee.
  • It fights trafficking through partnerships, staff training and philanthropic support.
  • Tennessee reported 213 human trafficking cases in 2024, involving 446 victims.

VISION HOSPITALITY GROUP held its fourth annual Red Sand Project with WillowBend Farms to combat human trafficking in Chattanooga, Tennessee. The event brought together organizations working to combat human trafficking, including the Family Justice Center for Hamilton County and the Hamilton County Health Department.

Keep ReadingShow less
Choice Hotels
Photo credit: Choice Hotels International

Choice posts $81.7M Q2 profit, 93K-room pipeline

Summary:

  • 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.

Keep ReadingShow less
Hotel exterior of Motel 6 Las Vegas under G6 Hospitality and Galaxy Hotels partnership
Photo credit: G6 Hospitality

G6, Galaxy aim to grow Motel 6, Studio 6

Summary:

  • 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.

Keep ReadingShow less
Choice Hotels campaigns

Choice launches campaigns for extended-stay brands

Summary:

  • 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.

Keep ReadingShow less