It was also a pattern predicated on ignorance of the motel industry, yet buttressed by expertise in the construction industry. As Becker later remarked to the Wall Street Journal regarding his company's genesis, "When we entered the business, we had the advantage of not knowing anything about it, so we weren't burdened by preconceived notions. Four years after the first Motel 6 opened, there were 26 motels in operation, each built for 50 percent of the construction costs other motel properties required.
From California, Greene and Becker had moved into Utah, Nevada, and Arizona and were awaiting the completion of a story motel in Waikiki and two more motels in Iowa, targeting any community that had a population base of at least 50, By this time, Motel 6's advertising budget was less than it was at the company's inception four years earlier, declining as Motel 6 billboards were eliminated. But perhaps more remarkable--and more indicative of the chain's growing success--was its occupancy rate, the true measure of a lodging facility's success.
In , the company recorded a 53 percent occupancy rate, a figure below the national average, but by Motel 6 was registering an This gave Greene and Becker all the encouragement they needed to continue expanding their motel chain. As Motel 6's successes mounted during the late s, outside investors began paying closer attention to the company's burgeoning growth, attention Greene and Becker welcomed.
In a interview with Newsweek, Becker stated as much, auguring Motel 6's future course when he remarked, "We're sort of mavericks in this business, because we've done something that a lot of people said was impossible. Consequently, at times, we haven't had the full confidence of the financial community By the early s, Motel 6 and its group of budget-oriented competitors also had begun to draw the attention of their larger, more luxurious competitors by capturing some of their market share.
The sudden rise and encroachment of budget motels was sufficient to force larger motel chains to adapt to the changing market conditions. But as Motel 6 had demonstrated a decade earlier, driving overhead costs down was not something to be accomplished administratively; it was something to be realized, first and foremost, by paying assiduous attention to construction costs and design plans. One of the pioneers of this revolutionary concept, Motel 6 moved forward with optimistic plans, bolstered by the growing presence and acceptance of budget motels across the country, particularly in the southwestern and western United States.
The company now had roughly motels stretched across 30 states, with plans to add motels by the end of the decade. Those plans were dashed, however, as growth slowed during the balance of the s, at least in terms of the company's hopeful prognostications. Although City Investing's divestiture of the budget motel chain was not directly related to Motel 6's laggard expansion--City Investing's shareholders had voted to liquidate a majority of the company's assets to focus primarily on selling home insurance--there were clear indications that Motel 6 was suffering from potentially debilitating problems.
More alarming than the motel chain's slower-than-expected expansion was its consistently shrinking occupancy rate, which declined from over 90 percent during the early s to 81 percent by , and to 59 percent by the time of the sale by City Investing. Chiefly to blame for Motel 6's malaise were the same companies that had grown along with Motel 6 to be prodigious forces in the lodging industry during the s and s. By the s competition among these companies had become intense, heightened after two decades of expansion that had blanketed the country with budget motels.
In the drive to lure guests into its rooms, Motel 6 was losing ground and its expansion efforts were losing momentum. Meanwhile, its closest rivals began sprucing up their rooms, making them more hospitable, and consequently robbing Motel 6 of its historically high occupancy rates.
A Motel is short for Motor Hotel. It does not have interior corridors, and a Lodge is either, usually a Hotel, in a rustic area and the building itself is also rustic. It connected individually-owned hotels that worked with the business begun by Dennis Brown in The first Motel 6 in Santa Barbara, California, remains in business. The partners developed a plan to build motels with rooms at low cost rates. Accor said it will use proceeds from the sale to slash its debt and grow its luxury Sofitel and Novotel hotels in expanding markets such as Asia, Latin America and Europe.
The chain features occasionally in popular culture, making appearances in a Yo La Tengo song, a Stephen King book and in a Simpsons episode. More Americans plan to travel this Memorial Day weekend -- but many will be following a budget, according to a survey last week from Deloitte. The hospitality industry is gradually recovering from the recession, when travel dropped significantly and occupancy levels in hotels slumped to their lowest levels since the Sept.
Last year, a record number of foreign visitors boosted overall tourism spending in the U. Downtown Los Angeles hotel will have lobby on 70th floor. Tourism spending in U.
Motel 6 said the practice was "implemented at the local level without the knowledge of senior management" and every location had been given a directive that they were "prohibited from voluntarily providing daily guest lists to ICE.
Additionally, Washington state filed a lawsuit in January against Motel 6 for giving the names of thousands of other motel guests to U.
Immigration and Customs Enforcement officers. On April 24, , the American Customer Satisfaction Index published a study of America's most popular hotel chains, placing G6 Hospitality's Motel 6 at the bottom of the category for the second year in a row.
Since , Motel 6 also operates Studio 6, a chain of extended-stay hotels that offers more amenities than a standard Motel 6 location, while also offering weekly and monthly rates.
Studio 6 allows pets with certain restrictions. Studio 6 hotels are located in 15 U. Some Studio 6 locations have been converted from other brands, such as Homestead Studio Suites. Staypedia Wiki Explore. Hotels by. Recent blog posts. Explore Wikis Community Central.
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