Staying power

Latin Trade, June, 2003 by Mary A. Dempsey

They're ubiquitous in Brazil, common in Chile and growing in number in Peru. But in Johnny-come-lately Mexico, long-stay hotels have been a novel notion--until now.

The Inter-Continental Hotel Group, which also includes Crowne Plaza and Holiday Inn hotels, has announced the opening of Mexico's first long-stay hotel in Puebla in 2005. The hotel will bear the Staybridge Suites brand name. Inter-Continental Hotel Group will market the property.

"Mexico will become the newest market for long-stay hotels, designed for travelers who stay five nights or more:' says Octavio Navarro, director of franchise sales for the hotel group. "Our main market will be Mexican businessmen."

Staybridge, a U.S. franchise, offers one-and two-bedroom apartments with separate work areas, full kitchens and high-speed Internet connections. Each hotel also offers breakfast buffets, a 24-hour business center, a small convenience store, a free laundry room and a gym; some of the more than 50 Staybridge hotels in the United States and Canada have swimming pools.

Navarro, who could not say what room prices would be at the Puebla hotel, noted that Monterrey and other cities are being eyed for additional Staybridge properties. Investors selected Puebla for the first 80-suite property in part, because its Volkswagen auto factory draws business travelers who spend several days in the city.

In the United States, the block-structure Staybridges have uniform designs and facades that hint at American Provincial architecture. However, Navarro says that look maybe modified slightly in Mexico.

Long-stay properties, known as apart-hotels in South America, are among the world's fastest-growing hotel segments. A Staybridge is also planned in Sao Paulo.

Alan Duggan, Mexico marketing director for Starwood hotels, which include Sheraton, Westin and Four Points brands, as well as the new W hotel in Mexico City says apart-hotels blossomed in Latin American countries like Brazil because of construction and tax incentives offered developers. That is not the case in Mexico where, until now, business travelers staying several days in a city have simply negotiated rate discounts with traditional hotels.

Will long-stays work in Mexico? "It's not impossible," says Starwood's Duggan. "It will all depend on price."