NYLO Hotels Announces First Franchise Agreements

NYLO Hotels L.LC. has announced its first franchise agreements for its urban lofts hotels at the 2009 ALIS Conference on Tuesday. The new-build projects are for full-service NYLO hotels in Chicago and New York, and for a select-service XP in Frisco, Texas, near Dallas. W. Developments L.L.C will build a NYLO in Chicago’s West Loop, while Sentry Hospitality L.L.C. will build a seven-story NYLO in New York’s Financial District. Behringer Harvard will build the first XP, a 127-room property in Frisco, Texas. John Russell, CEO of NYLO Hotels, sees a large market for both brands in secondary markets, as lower land costs will make development more economical. Hotel development is being challenged by today’s rigid credit markets, but Russell said that both NYLOs and XPs can be developed in the $10 million to $20 million range, and projects in that price range are getting financing. “It’s many larger projects that are having trouble,” Russell said. He said NYLO originally had a goal of 50 hotels being built by the end of 2010, but Russell said a more realistic goal is now 40. The company has approximately 40 sites in the pipeline, but Russell says not all of those hotels have secured financing. And while secondary markets are attractive, NYLO will also look for opportunities in gateway cities, if a developer who wants to build a NYLO owns a site in a major city, Russell said. There are two NYLO hotels now open, in Warwich, R.I. and in Las Colinas, near Dallas