Hotel management

Hampton Inn debut at Ranch Cucamonga as part of hotel revival

As leisure and business travel continues to rebound from the COVID-19 pandemic, Newport Beach-based Twenty Four Seven Hotels has expanded operations with the opening of a 108-room Hampton Inn & Suites hotel rooms in Rancho Cucamonga.

The debut brings the hotel management company’s portfolio to 26 hotels, including 17 in California. In total, this includes around 3,500 rooms with more under development.

Twenty Four Seven plans to open three more California hotels in October, including a Hampton Inn & Suites in Marina (north of Monterey), a Hyatt House in Sacramento and a Hyatt Place in Newark (north of San Jose).

A Holiday Inn Express in Chino Hills is also slated to open in early 2023, and a Hampton Inn & Suites in Diamond Bar has a tentative opening slated for 2024, company officials said.

Twenty Four Seven manages all aspects of hotel management, ranging from human resources and accounting to revenue management, digital marketing and day-to-day operations.

The Hampton Inn & Suites hotel in Rancho Cucamonga features an outdoor heated pool, 24/7 market, fitness center and 600 square foot meeting room. (Photo courtesy of Twenty Four Seven Hotels)

CEO David Wani warned earlier this year that opening dates are subject to supply chain disruptions, which can be unpredictable.

“If a delivery of supplies is late, it could push back an opening date by 60 to 90 days,” he said.

Disruptions aside, the hospitality industry is holding up.

Despite high inflation, a slowing economy and fears of a recession, hotels are not experiencing a downturn. Hilton CEO Chris Nassetta predicts the chain “will have the biggest summer we’ve seen in our 103-year history this summer.”

In a recent interview with CNBC, Nassetta said demand was fueled by two factors — the leisure consumer’s additional savings of more than $2.5 trillion and strong corporate balance sheets coupled with “very good” profitability. .

Twenty Four Seven’s earnings in 2022 were supported by healthy occupancy rates, according to spokeswoman Sarah Crowe.

“We’re flat at 68% year-to-date,” Crowe said via email. “Our average daily rate across the entire portfolio is $167.27, which is significantly higher than the national average.”

Data from hotelonline.com shows the average daily rate for US hotels in July was $158.32.

Wani said Twenty Four Seven is primarily focused on the western United States with a flexible and fast-paced business model.

“By prioritizing our relationships with our owners and our brands, we are able to remain nimble and readily available to interact with any of our customers at any time,” he said. “Our goal is to make sure that none of our hotels ever get lost in the mess.”

Twenty Four Seven’s current portfolio of 26 hotels comprises approximately 3,500 rooms. (Photo courtesy of Twenty Four Seven Hotels)

The company’s California hotel roster includes a DoubleTree by Hilton LAX in El Segundo, Hampton Inn & Suites in Ontario, Cambria Hotel in Calabasas, Holiday Inn Express & Suites in Chino Hills, The Waterman in Santa Barbara and the Hilton Garden Inn in Temecula, among others.

Emmy Hise, the CoStar Group’s senior director of hotel analytics for the western United States, said the industry’s recovery was largely driven by leisure travelers.

“They call it a revenge trip,” Hise said recently. “People want to get out, and sometimes they go to more upscale hotels than before because they’ve been locked down for so long.”