Budget Hotels Going More Upscale

Motel 6 is upgrading with flatscreen TVs; other budget hotels have similar plans

ByABC News
March 20, 2008, 6:08 PM

March 25, 3008 -- More chic than cheap. That might be the new motto of Motel 6, which aims to redefine what it means to stay in an inexpensive roadside motel. Think flat-screen TVs, granite bathroom countertops and other amenities not commonly associated with budget chains.

And don't be surprised to see low-price competitors do likewise. At least two, Super 8 and Red Roof Inns, have similar plans in the works.

CEO Olivier Poirot says Motel 6's first major makeover in a dozen years is not designed to alter its basic appeal or price. The chain has grown over 45 years by promising highway travelers a clean room, free morning coffee and HBO at a low rate. Despite looking more upscale, Motel 6 will continue its low-rate strategy; cost of an average room last year was $45.26.

"The idea was: How can we pack more value into the customer without changing positioning?" he says.

Gone will be the busy, vividly colored bedspread. Bedding in sophisticated tones such as cinnamon or olive will complement an accent wall. In the new bathroom, a white vessel sink will set atop black granite. Room carpets will be replaced by wood-look flooring, and new, contemporary furnishings will resemble something from the pages of a West Elm or IKEA catalog.

The plan also puts Motel 6 on track to become the first economy chain to feature 32-inch flat-screen TVs, Poirot says. Guests will be able to plug in their laptops or MP3 players, and they'll have Wi-Fi access at every hotel.

Poirot expects the flat-screen TVs will be "a revolution" in the budget-hotel category. A major competitor, Super 8, operated by Wyndham Worldwide, will "strongly urge" franchisees to buy flat-screen TVs as they upgrade properties and build new hotels with a stylish, "retro-hip feel," says John Valletta of Super 8 Worldwide.

Red Roof Inns has similar plans. Its next-generation rooms also will have a clean, modern look with minimalist bedding, granite counters, wood-look floors and 32-inch flat-screen TVs. The first of the new Red Roofs is expected to open this year in Columbus, Ohio.