American furniture retailer West Elm has done it, as have luxury brands such as Armani and Bulgari. Now Japanese lifestyle giant Muji, which is known for its minimalist aesthetics, is taking a step into the hospitality business.
Capsule hotels in Japan were once the domain of salarymen looking for a cheap, fuss-free spot to crash after a late night. But a new crop of guests has helped spur their resurgence, with growing numbers of novel and upmarket versions opening in the last year.
Hotel transactions in the U.S. top 25 markets accounted for just 37% of sales in 2017, down from 52% of all sales in 2016.
When analyzing the performance of the extended-stay hotel segment, we see a difference in the performance of the upper-priced properties in this segment versus the moderate-priced properties. Since 2010, moderate-priced extended-stay hotels have shown greater gains in revenues and profits. However, upper-priced extended-stay hotels continue to achieve premiums in occupancy, ADR, revenues, and profits.