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 Baymont Inns & Suites Continue Planned Migration 
from Economy Segment to the Mid-market Segment
MILWAUKEE, Wis., December 14, 2000 � Baymont Inns & Suites, the mid-market, limited-service hotel brand of the Marcus Corporation (NYSE: MCS), unveiled a number of new growth initiatives to its franchisees at the brand�s annual conference held recently in Williamsburg, Va.  Reflecting the conference theme of �A Brand New Vision,� Baymont focused on the success of its strategy to reposition the brand in the mid-priced lodging segment and outlined its new strategies for growth.

�We have made the successful transition to the Baymont brand name over the past two years, and it is now time to move to the next level,� said James Abrahamson, Baymont Inns, Inc. president and chief operating officer. 
 

�Average daily rate since we introduced the name change is up substantially, and occupancy and revenue per available room are up significantly at our franchise hotels, compared to flat growth for the brand�s peer group.  It is clear that the concurrent physical upgrades to our properties and change to the Baymont Inns & Suites name are attracting a whole new class of customers.  As a result, we are seeing a substantial increase in interest from the hotel development community.�
Baymont Expanded 
Amenities Include:
  • Lobby breakfast menu now includes waffles and French toast.
  • Also offering larger sizes of coffee and juice plus a complimentary bottle of water in rooms.

Abrahamson said the brand will continue its planned migration from the economy segment to the mid-market segment.  �Our goal is to be best in class in the mid-market segment, and we are taking bold initiatives to achieve that goal.�

He noted that the brand�s growth strategy will be to focus on the customer, adhere to strict quality and consistency standards, provide exceptional service to guests and franchisees and create value for guests.  �Over the next 12 months, we will launch a number of innovative  programs�ranging from new, highly distinguishable amenities to a new, competitive frequent guest program�that will further separate Baymont from its peer group,� he said.  

Abrahamson said that the brand has aggressive plans to expand nationwide.  Baymont Inns & Suites added 11 new properties to the system in the past 12 months and has 30 under development.  �Our goal is to move from our current size of 174  properties to 500 hotels open or under development within five years,� Abrahamson said.  �We will add properties in existing locations, while providing adequate areas of protection for our current franchisees� properties, and expand into new parts of the country, particularly the West Coast and in New England, where one of our franchisees just opened a highly successful Baymont in the Boston metro market.  We expect to open our 200th property sometime in late 2001.�

Baymont also will aggressively step up its consumer marketing efforts, according to Norman Cavin, Baymont�s senior vice president of marketing and sales.  �We are completing extensive consumer research and testing new amenities and innovations and will soon enhance our product to respond to changing consumer preferences.�

Cavin said that Baymont will use a multi-media approach to marketing in 2001, anchored by a new national advertising program.  He pointed out that the company will expand its national sales team to broaden the brand�s efforts in the corporate, travel agent, government, group and leisure travel markets.  A cornerstone will be the launch of a new frequent guest program in the first quarter of 2001.  The company also will step up its e-commerce capabilities, implementing seamless connectivity, a two-way reservation program and an enhanced Web site.

New brand initiatives will make Baymont �easy to do business with,� said Daniel Daniele, president of Baymont Franchises International, Inc.  �Our focus will be on the five �B�s�: business work environment within the room, the bath, bed, breakfast and benefits.  In the coming 12 months, we will launch a number of unique initiatives that will truly set Baymont apart for both the mid-market franchise community and for business and leisure travelers. 
 
Daniele noted that the brand is gaining substantial momentum in the franchise community.  �We are continuing with our ongoing property re-imaging program, which will be completed systemwide by 2003.  At that time, all of our properties will be in �like-new� condition, giving us a much stronger position in the marketplace.  We believe our upgrades and new product initiatives will help us attract new customers and enhance the brand�s ability to increase occupancy and rate.  We are confident that Baymont now is one of the most attractive franchise opportunities in the mid-market, casual luxury, limited-service segment.�

Headquartered in Milwaukee, Wis., Baymont Inns & Suites is owned, operated and franchised by the Milwaukee-based Marcus Corporation (NYSE: MCS), which comprises four divisions:  limited-service lodging, hotels/resorts, movie theaters and restaurants.  In addition to the more than 170 Baymont Inns & Suites, The Marcus Corporation operates seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas, and operates hotels and/or resorts in Wisconsin, California, Minnesota and  Missouri.  

Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. 

Also See Norman J. Cavin, Former VP and Brand Manager at Choice, Joins Baymont Inns as SVP of Marketing / July 2000 
Former Hilton Executive Jim Abrahamson Named President and COO of Baymont Inns Suites / May 2000 

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Contact:
Jerry Daly or Carol McCune
  (703) 435-6293
www.baymontinns.com


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