From the floors of the Americas Lodging Investment Summit in San Diego, Advaya Hospitality unveiled a global lifestyle hotel brand today to an audience of industry insiders.
The brand, MODO Hotel, will make its debut in major markets around the world, starting with a minimum of five properties in India and another five in Brazil. Advaya also is in the early stages of establishing a fund to acquire strategic assets and build new hotels, targeting major U.S. markets like New York, Kansas City and Miami.
MODO presents a new take on hospitality that’s stylish, affordable and musically inspired. The brand will feature a striking urban, Bauhaus loft design. With its vast collection of vinyl records, CDs and MP3 content, MODO will showcase independent artists around the globe, promising a unique and entertaining travel experience.
Full-service MODO hotels will house 100 or more rooms, a lively restaurant-lounge,courtyard, pool, meeting and event space, library, retail shop and gym. Nightly rates will be in sync with today’s value-conscious travelers and the local markets. In the U.S., rates at full-service properties are targeted to range from $90 – $150 per night with the exception of some larger gateway cities. Additionally, a line of budget lifestyle lodgings will launch in international markets this year, creating a new niche of budget lifestyle hotels.
During the next three years, MODO will roll out in major metropolitan markets in Brazil. Five to ten 150-room hotels will be strategically located in the fastest growing cities of Sao Paulo, Campinas, Curitiba, Vitoria and Manaus. MODO in Brazil will be developed by the newly formed ABR Brazil LLC, a joint venture between MODO and BridgeRock Capital Management LLC.
Additionally, during the second half of this year, a MODO sister brand will premier in India, creating a new market niche of budget lifestyle hotels. Over the next three years, a minimum of five budget lifestyle hotels will launch in India under the MODO sister brand. The 60- to 80-room lodgings will have limited food and beverage offerings and small meeting rooms. They will be located in the cities of Chennai, Tuticorin, Kakinada, Vizag and Vellore.
Building costs for a full-service MODO hotel will be approximately $110,000 per key, including average land cost, with variations in major gateway cities. “That’s at least 20 percent less than those for other hotels in the same class,” saysJohn Russell, CEO for MODO and Advaya.
Franchising is slated to begin later this year. Additional expansion is planned through a combination of acquisitions, new development and conversions of existing properties. Among the target countries are China, Thailand, Malaysia, Singapore and Sri Lanka.