WICHITA, Kan.--(BUSINESS WIRE)--WaterWalk Hotel & Apartments, the fifth national brand from entrepreneur Jack DeBoer, has strong revenue potential and longer stays than the average hotel and apartment, according to new research from hospitality consultancy firm The Highland Group. The report adds to the growing evidence of WaterWalk’s hybrid hotel and apartment business model, which The Highland Group shows can generate higher occupancy, average daily rates (ADR), and revenue per available room (RevPAR) compared to extended-stay hotels. At the same time, WaterWalk is uniquely positioned to capitalize on the growing demand for corporate housing.
Every year, the total number of room nights in hotels, corporate housing, and extended-stay hotels by Americans exceeds 1.12 billion. Extended-stay visits amount to 95.7 million room nights, and corporate housing experienced approximately 18 million room nights. The Highland Group report finds that WaterWalk’s total package – its larger, upscale rooms and all of the included amenities -- align with current demand trends. This results in an unprecedented opportunity, with the Highland Group estimating WaterWalk has the potential to capture one percent of the total market size and have demand for 10 million room nights in the coming years.
Nationally, the ADR of upscale, extended-stay hotels was $122 in 2013. The Highland Group found that across the 100 largest markets in America, corporate housing commands an ADR between $83 and $301, with an average price of approximately $137, and an average annual occupancy of 88 percent.
In 2013 total room revenue for corporate housing was $2.48 billion, or two percent of total U.S. lodging revenue. The RevPAR premium corporate housing and upscale extended-stay hotels attain above traditional hotels is substantial. Corporate housing reported a 73 percent RevPAR premium in 2013. The corresponding value for upscale extended-stay hotels was 34 percent.
“As the U.S. economy continues to add thousands of workers throughout many diversified types of business, from tech, to government, to energy and others, demand will increase for these types of properties. WaterWalk will help fill this need across the country,” said David Redfern, President of WaterWalk Development. “Our versatility makes WaterWalk an unmatched opportunity for investors and franchisees—the built-in advantages offer investors the higher revenues of an upscale extended-stay hotel and the capital structure and valuation of an apartment.”
The Highland Group report estimates that business travelers make up 70 percent of stays at upscale, extended-stay hotels, and that 9 percent of all trips were for seven nights or more. WaterWalk Hotel & Apartments, which has a location open now in Wichita, Kansas and eight more locations breaking ground in 2015, offers these upscale furnished rooms at weekly or monthly rates—perfect for these business travelers.
WaterWalk’s stays are trending longer with 87 percent of guests in furnished units staying more than 30 nights, with the average length of stay at 84 nights—approximately the same as the national average length of stay in traditional corporate housing locations.
WaterWalk’s hybrid model of hotel and apartment combines all of the traditional hotel services into a gated, purpose-built community, and offers a bevy of upscale amenities and features such as all-inclusive pricing, full-sized appliances in a modern kitchen, high-speed Internet, DirecTV with premium channels, housekeeping, fitness memberships, a communal bicycle program, local transportation, and free customized breakfast.
Companies using WaterWalk for their corporate housing will find an added level of convenience and quality over other corporate housing facilities, including a national sales team and full support staff that are accessible and available on-site 24-hours a day for any guest needs, increased flexibility in lengths of stay, competitive pricing, and premier safety and security measures. WaterWalk’s Wichita location has already drawn corporate lodging rentals from Fortune 1000 companies.
In 2015, construction will begin on nine new WaterWalk Hotel & Apartments complexes in eight cities: Louisville, Charlotte, Raleigh, Fort Lauderdale, Atlanta, Denver, St. Louis, and two in San Antonio.
For more information on the report, please contact Leigh Minnier at (610) 228-2108 or at Leigh@GregoryFCA.com. Potential franchisees seeking additional information on the brand can contact Julie Olson at 316-516-2619 or at Julieo@waterwalk.com.
About WaterWalk Hotel & Apartments
Headquartered in Wichita, WaterWalk Hotel & Apartments is the nation’s first serviced apartment brand, combining the most appealing features of an upscale extended-stay hotel with the lifestyle of apartment living. Guests may choose to stay a day, a week, a month, a year, or longer with an all-inclusive bill for utilities, TV, internet, phone, and concierge services. For the full-service Gold package, housekeeping, fully-furnished apartments, and breakfast are also provided. WaterWalk Apartments is the fifth national brand started by Jack DeBoer, founder of Residence Inn, Summerfield Suites, Candlewood Suites, and Value Place. For more information, visit www.waterwalk.com or call (316) 219-6060.