PETOSKEY — Aiming to take a slice out of the growing market for extended stay lodging, a ground breaking was held Wednesday for a new hotel in the area.
NJA Management Group LLC, a downstate hotel management company, will build a Home2 Suites Hilton at 2531 Charlevoix Ave. in Petoskey. Home2 Suites is an all-suites, mid-priced extended stay chain operating under the Hilton banner.
Dr. Navin Abro of NJA said Home2 Suites is looking to attract travelers who need more than a typical hotel room.
"A majority of the rooms should have a kitchenette, a refrigerator, a microwave so anyone wants to stay in the area for two, three or four or more nights, will have room for their own food and it will also be comfortable for a family," Abro said.
Abro said the extended stay market has been growing over the last four to five years.
"As people travel more, I think they like the comfort of being able to have a fridge for snacks and the ability to warm up some food but also have the option of being able to check out the local restaurant scene," he said.
Jack Levy is a hospitality consultant for commercial real estate firm CBRE. In a research note from last July, he said "the pandemic and hybrid work arrangements have generated strong demand for longer hotel stays, increasing the popularity of cost-effective extended-stay hotels and making them one of the fastest growing segments in hospitality."
With higher margins and lower development costs than full-service hotels, extended-stay properties have the potential to generate higher investment returns, noted Levy.
Abro said NJA has been in Traverse City recently and started to look at Gaylord.
"But being in Petoskey you see the market and knowing what the Home2 Suites brings, I think it was something that we needed here. All the hotels here are nice but adding the Home2 Suites, I think it fits in here well, especially overlooking the water," said Abro.
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Abro said the hotel should employ between 18 and 22 people when it is finished.
"We need (personnel) for the front desk, managerial, housekeeping and maintenance. We always like to hire local. We are coming into the community and we want to be a part of the community," he said.
Abro said his company will be investing from $14 million to $16 million into the project and hopes to have construction completed by May of 2025.
— Contact Paul Welitzkin at pwelitzkin@gaylordheraldtimes.com.
This article originally appeared on The Petoskey News-Review: New extended-stay hotel to be built in Petoskey