The first Serviced Apartment Summit Americas which took place earlier this month in New York City produced some fascinating discussions, many of which highlighted the similarities between the serviced apartment/extended stay sector in the US and here in Europe, and others which revealed some major differences.
One of the most intriguing speakers was Jon Pertchik, CEO of InTown Suites, which unabashedly operates at the economy end of the extended stay market. InTown, and its only major national rival Value Place have a combined market share of around 50 per cent, and profit margins that would make even the most successful in the luxury space green with envy.
Pertchik is helming a major renovation and expansion phase which will bring the brand slightly upmarket, but he is betting that the increased revenue it will bring will protect his margins.
The model is fascinating, and certainly raised a few eyebrows among the European delegates who had made the trip to New York for the Summit.
It will be interesting to see if any of them think that a model like InTown Suites – which has an average stay of 89 days – could work in Europe, and if anyone is brave enough to give it a go.
Click here to watch a video interview with Jon Pertchik discussing his plans.
Overlooked margins
The first Serviced Apartment Summit Americas which took place earlier this month in New York City produced some fascinating discussions, many of which highlighted the similarities between the serviced apartment/extended stay sector in the US and here in Europe, and others which revealed some major differences.
One of the most intriguing speakers was Jon Pertchik, CEO of InTown Suites, which unabashedly operates at the economy end of the extended stay market. InTown, and its only major national rival Value Place have a combined market share of around 50 per cent, and profit margins that would make even the most successful in the luxury space green with envy.
Pertchik is helming a major renovation and expansion phase which will bring the brand slightly upmarket, but he is betting that the increased revenue it will bring will protect his margins.
The model is fascinating, and certainly raised a few eyebrows among the European delegates who had made the trip to New York for the Summit.
It will be interesting to see if any of them think that a model like InTown Suites – which has an average stay of 89 days – could work in Europe, and if anyone is brave enough to give it a go.
Click here to watch a video interview with Jon Pertchik discussing his plans.
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