What's new at NYLO, which last year announced the introduction of a new class of hotels featuring loft accommodations, innovative design and affordable rates?
The Atlanta-based company will be breaking ground for its first property some time next month.
"We start breaking ground in May in Warwick/Providence R.I.," NYLO CEO John Russell said in a telephone interview. NYLO's Warwick/property will be located four miles from the regional airport, on a river, and next to large malls and universities.
A second NYLO ground-breaking is scheduled for July, and a third in October, at locations to be announced, Russell said.
NYLO Hotels will feature an urban-loft design, with a red-brick-and-glass construction, 11-foot-ceiling loft accommodations with oversized windows, exposed-brick-and-polished-concrete walls and custom-made furnishings.
Russell described NYLO Hotels as being for "people are looking for the next new trendy edgy type of product…"NYLO won't be "cookie cutter, it's a very distinctive look," he adds.
In an attempt to attract the age 22-58 business traveler, each NYLO Hotel will also feature The Loft, a common area where guests can work, eat, socialize, read or check e-mail in a living room atmosphere. Meeting facilities will feature advanced technology.
Russell said that NYLO seeks to fill "a gap between Hilton Garden Inns and Marriott Couryards, and full-service Hiltons, Hyatts and Marriotts… both by product category as well as by price." The niche includes the Aloft brand from Starwood and Hyatt's transformation of AmeriSuites into the Hyatt Place chain. Russell foresees 50 NYLO Hotels open by 2010. Overnight prices will range from $115-130 per night.
NYLO plans include being part owners in "six or seven" properties in secondary and tertiary markets. "We're not going into gateway cities because of costs and products already exist," he said.
During the initial period the company will "manage and create the service culture" and expects to begin offering franchise opportunities later this year. "We're in the process of filing for a Uniform Franchise Offering Circular, which will enable us to start selling franchises around September," Russell said.
Russell's partners in NYLO are renowned designer Stephane Dupoux, Christopher Jones, Senior VP of Development, and President Mike Mueller, who is looking for sites around the country.
In a company press release, Mueller, originator of the idea and business plan for NYLO, said: "NYLO Hotels are designed on the premise that travelers appreciate innovative design and good value. Mueller also played a major role in the dramatic growth of Starwood Hotels & Resorts from its formation until 2004 and recently oversaw the development and acquisitions for Starwood's W brand globally.
In a separate announcement, Russell said that NYLO now has the global investment bank Lehman Brothers as a " strategic partner that is going to help fund our operating costs as well as (have an) opportunity to participate as equity partners in six or seven hotels."
Adds Russell: "It's nice to have a strategic partner, we can concentrate on fulfilling the vision and getting things done without having to keep raising money every two weeks."
