With occupancy levels at around 70% in luxury hotels in California, many are now encouraging guests looking for extended stays to fill rooms. Historically, luxury chains such as Rosewood Hotels and Resorts shied away from encouraging long-term guests but now they are welcomed with open arms as business has yet to return to pre-recession levels.
The Surrey Hotel and Spa in New York added kitchens to its suites during a recent upgrade and has seen long-term stays increase by 50% year-on-year. There are many reasons guests are choosing to stay long-term in luxury hotels. Employees working on projects away from home, recent divorcees, those visiting a city for medical treatment or people finding themselves homeless after a disaster such as flooding are all likely to prefer a luxury hotel over a short-term rental. Relocating families unable to sell their home and those choosing to renovate rather than move up are also likely long-stay guests.
Although visitors staying more than 30 days may negotiate high discounts, they are likely to spend more on additional services, such as butler service, room service, dining and laundry, which all help keep staff gainfully employed. The Rosewood Sand Hill in Menlo Park, California added five villas in its grounds to accommodate long-term guests and it is certainly paying off. The Rosewood Crescent Hotel in Dallas accommodates long-stay guests by providing extra clothing racks and the Mansion on Peachtree, a Rosewood Hotel in Atlanta, is happy to hang guest’s artworks in their rooms.
One long-term guest finds staying at the Pelican Hill in Newport Beach extremely convenient. If he has had too many cocktails, he calls the concierge and requests a pickup in the hotel’s staff-driven Escalade. Pelican Hill struggled after opening in the depths of the economic downturn and has survived by offering discounts for stays over a month. Rooms regularly priced at $745 are $263 a night although turn-down and butler service are extra.