HoCoSo'S Jonathan Humphries: Shift in Demand Vs. Supply in Extended Stay21 Jul 2017
HoCoSo's Chairman & CoOwner Jonathan Humphries discusses changes that he has seen in his 11 year experience in the Serviced Apartment and Extended Stay sector. He also reviews how the hospitality industry has evolved over time,and why eh believes the shift has occurred.
Glenn Haussman: You're watching Here To Stay TV, brought to you by bridgestreet.com. I'm here with Jonathan Humphries with HoCoSo but what I find interesting about you is you've got a lot of experience in the extended stay world. You even brought over residents in here to Europe, so how are people feeling about extended stay? How has the market changed and what's the big picture for you?
Jonathan Humphries: Thanks, Glenn. Well, I've been in the sector since 2006 in Europe, so 11 years now, and I've seen a dramatic shift in terms of the product. When we first started getting into extended stay, essentially the demand piece was huge and the supply piece was almost non-existent.
Over the last 11 years, that has started to shift. Having said that, it's still highly fragmented but the weather is very well placed product in this space. It is doing exceptionally well.
Glenn Haussman: Yeah, I'm getting the sense that both consumers and developers are catching on at about the same time and we're about to hit a kind of magical moment for this side of the business.
Jonathan Humphries: Absolutely, and that's the trick is really marrying up the consumer side, the needs, demands, wants, desires, with the development piece to make it economically viable. Right? And if you get those two parts of the equation, you can have a very compelling market opportunity from an expansion perspective.
Glenn Haussman: Why do you think customers are catching on to this product now?
Jonathan Humphries: Actually, they've always been there. I just think it's been underserved and there's not been product that's been fit for purpose, so they have gone to all other avenues, including traditional hotels. They've gone to kind of make-shift rentals and then Airbnb, and all these platforms that we're familiar with today, but when there is tailor-made product that suits their purposes, they're fully on it. They're fully engaged and fully supportive.
It's still about hospitality, there still has to be a service aspect which resonates with them. We're still clearly in the hospitality space even with this extended stay serviced apartment mix.
Glenn Haussman: Makes a lot of sense. We're seeing a confluence of consumer behavior trends, with great development trends that are forming to make this a strong, viable, financially profitable opportunity. I'm Glenn Haussman for Here To Stay TV.