A Word with GHN Advisory Board Member Rob Palleschi
2019 Priorities and Growth Aspirations
Motel 6 has been a force in the hospitality space for more than half a century. We created the economy lodging segment in 1962 when we turned the lights on at the first Motel 6 in Santa Barbara, Calif., welcoming people and pets for just $6 a night. While there has been significant growth and an abundance of new entrants to the hospitality industry, we have remained the constant. Today, we have established ourselves as a market leader with an iconic brand, supported by an award-winning advertising campaign (We’ll leave the light on for you®). We choose to capitalize on our long history of expertise and success to lead the economy lodging segment into the future. G6 Hospitality currently owns, operates and franchises more than 1,400 economy lodging locations under the Motel 6 and Studio 6 brands in the United States and Canada, Hotel 6 and Estudio 6 brands in Latin America and the Hotel 6 brand in India.
With one of the largest pipelines of any economy brand in the industry, G6 Hospitality is focused on growth across the United States and internationally. To achieve this, we’ve restructured the business to separate owned and managed real estate operations from brand/franchise operations. Brand reputation and quality are critical to our success, and this separation allows us to provide more brand resources and field support for both lines of business. Our owned operations team will focus on managing G6-owned properties and executing on our new brand standards, which focus on consistent delivery of quality and service. The brand management team will focus on servicing and expanding franchise partnerships and – equally as important – ensuring continuity in how our brand is represented across all properties and in every guest interaction.
We know that if we focus on delivering the best support in the business to our franchisees, we’ll grow not only existing relationships, but also attract new ones. Last year, we signed 169 franchise agreements, which is a 10% growth from the previous year, and we’re targeting around the same again this year. Most of these were in the United States and Canada, and this year we expect to see increased interest in Latin America, including Mexico and Colombia. To help with that growth, we unveiled earlier this year at the American Lodging Investment Summit (ALIS) a new flexible design concept that allows owners to build a Motel 6, a Studio 6 or a dual-brand location. The new design prototype gives us the competitive advantage of being one of the few franchisors that can offer a dual-brand option to franchisees.
What to Expect from G6 Hospitality in 2019/2020
We are focused on the rollout of the new design in the year ahead and the investments we’re planning to rejuvenate key corporate-owned and managed properties, including the original Motel 6 location on the Santa Barbara, Calif., beachfront, San Diego, Las Vegas Strip, Jackson Hole, Wyo., Jacksonville, Fla. and Fort Lauderdale. We look forward to expanding our footprint and are dedicated to leaving the light on and providing an excellent experience for our guests in the economy lodging sector.