As leisure and business travel continues to rebound from the COVID-19 pandemic, Newport Beach-based Twenty Four Seven Hotels has expanded it operations with the opening of a 108-room Hampton Inn & Suites hotel in Rancho Cucamonga.
The debut boosts the hospitality management company’s portfolio to 26 hotels, 17 of which are in California. That is about 3,500 rooms with more in development.
Twenty Four Seven plans to open three more California hotels in October, including a Hampton Inn & Suites in Marina, which is north of Monterey; a Hyatt House in Sacramento; and a Hyatt Place in Newark, which is in the Bay Area.
A Holiday Inn Express in Chino Hills also is set to open in early 2023 and a Hampton Inn & Suites in Diamond Bar has a tentative opening scheduled for 2024, company officials said.
Twenty Four Seven handles all aspects of hotel management, ranging from human resources and accounting to revenue management, digital marketing and day-to-day operations.
CEO David Wani cautioned earlier this year that opening dates are subject to supply chain disruptions, which can be unpredictable.
“If a delivery of supplies runs late, that could bump an opening date by 60 to 90 days,” he said.
Disruptions aside, the hotel industry is holding its own.
Despite high inflation, a softening economy and fears of a recession, hotels aren’t seeing a slowdown. Hilton CEO Chris Nassetta predicts the chain will “have the biggest summer we’ve ever seen in our 103-year history this summer.”
In a recent interview with CNBC, Nassetta said demand is being fueled by two factors — the leisure consumer’s more than $2.5 trillion in incremental savings and strong corporate balance sheets paired with “very good” profitability.
Twenty Four Seven’s 2022 profits have been bolstered by healthy occupancy rates, according to spokeswoman Sarah Crowe.
“We are a steady 68% year to date,” Crowe said via email. “Our average daily rate across the portfolio is $167.27, which is significantly higher than the national average.”
Data from hotelonline.com show the average daily rate for U.S. hotels in July was $158.32.
Wani said Twenty Four Seven is primarily focused on the Western U.S. with a business model that’s flexible and fast on its feet.
“By prioritizing our relationships with our owners and brands, we are able to remain nimble and readily available to interact with any of our clients at a moment’s notice,” he said. “Our goal is to make sure none of our hotels ever get lost in the shuffle.”
The company’s roster of California hotels includes a DoubleTree by Hilton LAX in El Segundo, Hampton Inn & Suites in Ontario, Cambria Hotel in Calabasas, Holiday Inn Express & Suites in Chino Hills, The Waterman in Santa Barbara and the Hilton Garden Inn in Temecula, among others.
Emmy Hise, CoStar Group’s senior director of hospitality analytics for the Western U.S., said the industry’s recovery is being driven largely by leisure travelers.
“They’re calling it revenge travel,” Hise said recently. “People want to get out, and sometimes they’re opting for higher-end hotels than that might have before because they’ve been cooped up for so long.”