NYLO Expansion to Target Smaller Markets
- Jan 31, 2008
NYLO Hotels, a hotel brand that saw its initial hotel opening recently in Plano, Texas, will focus its growth ambitions on secondary and tertiary markets. Expanding into major, gateway cities is just “too expensive,” John Russell, CEO of NYLO Hotels, told CPN at the Americas Lodging and Investment Summit held Wednesday in Los Angeles. “We want to establish the brand first.” The company announced on Tuesday that they would franchise the NYLO brand, and also debuted a new, select service brand, XP. For every three NYLOs that are built, Russell said seven XPS should be constructed. Average development costs for an XP are approximately $11.2 million, while NYLO’s will be $23 million. XP’s lower development should play well in an environment where obtaining hotel construction loans can be a challenge, Russell said. “If you can develop a hotel for a lower amount of money, that should resonate well,” he said. With its strategic partner, Lehman Brothers, the hotel company wants to have 50 NYLO Hotels open or under construction by 2010. Having hotels in growing suburban communities, such as Plano, is the game plan, Russell said, as the new hotel is located at the 2,665 acre Legacy community, home to the national or regional headquarters of some 50 corporations, and a large amount of retail.NYLO Hotels will feature rooms with high ceilings, exposed brick walls and large windows. The full-service hotels will have a three-meal restaurant featuring Mediterranean-inspired cuisine, a bar, game room, gym, and 24-hour business center.