My Place Hotels of America

MyPlaceHotels1

My Place Hotels continues to carve out a niche in the hospitality industry

with its U.S. franchise expansion campaign. 

By Kat Zeman

It may be a relatively new start-up company, but My Place Hotels of America has already carved out a niche in the hospitality market.

The Aberdeen, S.D.-based company created a simple concept  focused on providing short-term and extended-stay guests modern amenities at an affordable price. Starting with only five hotels in 2012, the company is quickly moving toward becoming a major franchise brand.

“We’re projecting to be at 100 franchise locations by the fourth quarter 2018,” President and CEO Ryan Rivett says. “We expect to continue growing this brand. There’s no rest.”My Place Hotels Fact Box

Last year, the company experienced a 33 percent increase in growth. It grew from 21 locations in eight states to 28 locations in 14 states. Continuing its franchise expansion campaign, the chain has 33 hotels open and operating with a near-term pipeline of 32 additional hotels and midterm commitments for upwards of 40 more hotels to follow.

While the brand may be new, the people behind the brand have generations of experience in the hotel industry. Rivett’s grandfather and My Place Hotels co-founder, Ron Rivett, is one of the industry’s pioneering hoteliers who gave the industry Super 8 Motels. “It’s been a family business since 1974,” Ryan Rivett says. “We grew the Super 8 brand to about 1,100 franchises.” He plans to grow My Place Hotels in a similar manner. 

Different Designs

My Place Hotels offers franchisees an all-new construction brand that is designed to ensure quality, consistency and uphold its standards for delivering marketplace value. Conversions are not allowed. The company has a prototypical design package that allows developers to choose from one of three schematics: three-story, 46-room; three-story, 64-room; and four-story, 63-room. All are available in Urban or Chalet designs.

“We’re building smaller buildings than typically required,” Rivett says. “It’s a fairly simple model in the hotel industry with fairly low capital requirement. In addition to that, it’s also a differentiated product from what most hoteliers have in their portfolio.”

On the operational side, running My Place Hotel comes with less overhead than an upmarket hotel, which generally has a larger staff and comes with meeting rooms and other labor intensive amenities.

Rivett says My Place Hotels are relatively low-cost and focused on balancing risk and return. Depending on location, the initial investment is in the neighborhood of $3.2 to $4.1 million, excluding real estate. The initial franchising fee is $30,000. There’s a graduated royalty fee that begins at zero and is capped at 4 percent and a 2.25 percent advertising/marketing fee.

When looking at a franchisee, the company seeks those that will operate multiple locations, but it doesn’t require it. “The fundamental requirement is to have experience in business and an entrepreneurial spirit,” Rivett says. “We have long-term hoteliers and first-time owners who are relying on us to show them the hotel business.”

My Place Hotels franchisees receive a variety of support services that include sales and marketing, construction and design, operations and quality assurance. Each franchisee is also supported by the company’s director of franchise relations who helps guide them through development, construction and operations, and facilitates a variety of communications.

Prior to opening their hotel, My Place Hotels offers each franchisee an administrative training course at the company’s Aberdeen headquarters and a comprehensive manager’s training course at the new My Place University training facility, which opened at the brand’s flagship location last year.

New Enhancements 

In addition to focusing on its franchise business, My Place Hotels has dedicated itself to making a number of improvements. Last year, the company launched a new website, and it’s in the process of launching a new loyalty rewards program called My Place VIP Club.

My Place Hotels offer modern amenities at an affordable price including nightly, weekly and monthly rate options. Each extended-stay guest room features a kitchen with a two-burner cooktop, microwave and full refrigerator.

The hotel allows pets and features on-site laundry facilities, complimentary high-speed internet and a 24-hour store in the hotel lobby that is stocked with an array of supplies. Guests also can purchase “breakfast in bed,” a custom breakfast selected from a menu at check-in that is pre-packaged and placed in the guest’s refrigerator the previous day. My Place Hotels prides itself on providing a clean and comfortable facility, with modern amenities and great customer service, all at an affordable price.

 

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