Realstar to bring 20 Studio 6’s to Canada

Irwin Prince

TORONTO—Realstar Hospitality, the master franchisors for Days Inns, Motel 6 and Studio 6 in Canada plan to establish 20 Studio 6 extended stay hotels across the country in the next two to three years. There is currently one Studio 6 in Misssissauga. At the same time, it will continue to grow its Motel 6 brand, steadily adding new build properties over the coming years.

Irwin Prince, president and COO of Realstar, told CLN that company is aggressively building the brand.  “We have had a very strong response to Studio 6, our extended stay brand for the economy segment.”

Studio 6 opens the door to existing hoteliers who are interested in conversions which involve, among other things, installing fridges and stovetops. While the extended stay segment has been well-received in the U.S., Canadian growth has been slower, Prince added.  There is definitely a market here for people with week, month or longer work assignments, who want to move into accommodation without the burden of a long-term lease. Western Canada is one obvious market, and Prince said the brand will also target locations in Quebec and the Maritimes.

“As times get tougher in the country, the value of a brand adds a lot to a retail establishment, whether it is a gas station, convenience store, restaurant or hotel,” he added.  “Our brand, our policies, our procedures and our discipline can help hotels asking, ‘how do I stay where I am and do a little bit better.’”

UNITE HERE rebuttal

Prince also responded to questions regarding a press release issued in mid-January by UNITE HERE, a California-based union of workers in the hospitality and garment industries, including workers employed by Accor in New York and Toronto. Accor North America is franchisor of Motel 6 and Studio 6. Realstar has master franchise rights for the brands in Canada.

“Despite its relative size, UNITE HERE finds that Motel 6 has been slow to grow its franchise base compared to some of its competitors,” the release said.  Motel 6 has averaged only 20 new franchisees a year since starting to franchise in 1996, according to an analysis of the company’s data.  Currently, Motel 6 has less franchised properties than even Microtel – one of the youngest and smallest motel chains, and lags far behind Super 8 and Econo Lodge.”

On the website, the group noted, “A decade after announcing expansion in Canada, it still has only 13 properties there.”

Prince noted that the website information was out of date—the company now has 15 Canadian hotels, with three under construction.  Estevan, SK will open in early February, followed by Kingston, ON and Moncton, NB.  They have also signed hotel deals in Saint John, NB and Lamont, AB with construction scheduled to start this spring.

“The main reason expansion in Canada has been slow is a strategic decision made by the corporate entity to make Motel 6 a new construction brand.  “I have had many requests for conversions,” said Prince, adding that if they wanted to do conversions they could have many more hotels.  “It’s tougher, and takes more money to do new construction.  In the last couple of years, construction costs have gone up.”

“We have good brand DNA,” he said. “We have multiple owners—franchisees who want more Motel 6s.”

“We made a decision to concentrate on quality of growth, quality of the product, quality of owners—and the right product for the right market,” Prince added. “Working within our rules right now means growth is slower than we would like it to be, but we’re slow for the right reasons.”