Extended Stay Hotels Relocation

[Sparkleman]

Extended Stay Hotels will relocate to Charlotte, NC later in the summer. This will be confirmed either laterer in the day or in the paper tomorrow.

This will deal downtown a significant blow economically unless they can be replaced (Lockwood Greene anyone?).

Stay tuned for further details.

[gman430]

Man that sucks. Why are they moving?

News article: http://www.news-record.com/content/2011/03/30/article/charlotte_relocation_means_170_new_jobs

[Spartan]

While it is a blow to downtown, it isn't the end of the world. These things happen. We already have a large, office vacancy rate downtown. There needs to be more of a push to improve quality of life in the city to attract business like this to town.

I want to see where they are moving to in Charlotte, because their choice in terms of location up here will say much more about the company and how committed they were to downtown to begin with. I'm betting on a suburban office park in southwest Charlotte.

[gs3]

I certainly hope Spartanburg government and business leaders are working to find out WHY they are moving. To lose a headquarters when a company is bought by another company can be painful, but at least understandable. Extended Stay wasn't purchased....they are simply moving. WHY? What did Spartanburg or the state of SC not do that they could do better? Hope questions are asked and a lesson is learned.

[westsider28]

I agree with gsupstate. I hope these questions are answered.

I also hope that this will be a wake-up call for the City of Spartanburg et al. I hope they have some urgency and are more proactive in seeking out businesses. I don't feel like they're doing enough to draw in and retain these types of white-collar employers. Factories are great, but professional, high-paying jobs are what we need to move forward as a City & County.

[gs3]

I agree with gsupstate. I hope these questions are answered.

I also hope that this will be a wake-up call for the City of Spartanburg et al. I hope they have some urgency and are more proactive in seeking out businesses. I don't feel like they're doing enough to draw in and retain these types of white-collar employers. Factories are great, but professional, high-paying jobs are what we need to move forward as a City & County.

Well said. "Retain" is the key word in your post. It is a great deal easier and takes less energy to retain current companies, customers, etc, than to develop new.....that is true for all cities / industries.

[roads-scholar]

I am not surprised ESA is leaving. They're owned by a private equity firm that could care less about Spartanburg or anyplace else. They've really never been a good corporate citizen. Its all about the bottom line baby!

[Sparkleman]

I am a little too close to the situation to comment freely at this time, but I will say Spartanburg did nothing wrong here. Hell they weren't even consulted about this. The only person that really knew was Nikki Haley and boy she is really turning into an idiot in a hurry. First Darla Moore and now this. 3 1/2 more years of her and the state will be lucky to still be a state. What pisses me off is though is that I bought in and voted for her.

Back to ESH though. I will draw you a comparison. Does anyone know the story of how the Baltimore Colts became the Indianapolis Colts? If so, this is comparable. If not just google it. ESH may say all the right things but the bottom line has nothing to do with the move as their business is booming.

I'll have to leave it at that for now, but things will leak more as the days go by. People will talk that know the real story and its not pretty.

[roads-scholar]

I am a little too close to the situation to comment freely at this time, but I will say Spartanburg did nothing wrong here. Hell they weren't even consulted about this. The only person that really knew was Nikki Haley and boy she is really turning into an idiot in a hurry. First Darla Moore and now this. 3 1/2 more years of her and the state will be lucky to still be a state. What pisses me off is though is that I bought in and voted for her.

Back to ESH though. I will draw you a comparison. Does anyone know the story of how the Baltimore Colts became the Indianapolis Colts? If so, this is comparable. If not just google it. ESH may say all the right things but the bottom line has nothing to do with the move as their business is booming.

I'll have to leave it at that for now, but things will leak more as the days go by. People will talk that know the real story and its not pretty.

Sparkleman, I WAS a Colts fan and remember when this proud NFL franchise left (in the middle of the night) Baltimore. ESA could care less about Spartanburg.

George Dean Johnson brought the company to Spartanburg from Fort Lauderdale, sold it to the Blackstone Group who in turn sold it to another PE.

They are not the same company as when Johnson brought them here. Even their name has changed. It is not Extended Stay America anymore, it is Extended Stay Hotels.

[Sparkleman]

I am well aware of all that you say Roads and you said it all in the first sentence of that post. The folks at the top of the company care nothing for Spartanburg, however the rest of the company does, but that matters little at this point. At some point I'll give you and everyone else the REAL reason for leaving.

Sparkleman, I WAS a Colts fan and remember when this proud NFL franchise left (in the middle of the night) Baltimore. ESA could care less about Spartanburg.

George Dean Johnson brought the company to Spartanburg from Fort Lauderdale, sold it to the Blackstone Group who in turn sold it to another PE.

They are not the same company as when Johnson brought them here. Even their name has changed. It is not Extended Stay America anymore, it is Extended Stay Hotels.

[roads-scholar]

I am well aware of all that you say Roads and you said it all in the first sentence of that post. The folks at the top of the company care nothing for Spartanburg, however the rest of the company does, but that matters little at this point. At some point I'll give you and everyone else the REAL reason for leaving.

I predict a lot of people in and out of town will start saying: "well, if Spartanburg had done this or done that ESA would have stayed". But, the fact is, this is another example where once again Spartanburg supported a business but that business, for whatever reason, closed up or simply left town for greener pastures.

I'm getting very, very tired of hearing that Spartanburg does not support businesses that come here. Whether that business is a small retailer or a corporation like ESA, it usually comes down to "Spartanburg didn't support it" or "Spartanburg didn't support us" or "Spartanburg didn't support me". Sometimes a business leaves town or closes up because of BAD business practices, BAD products, BAD service, and BAD management. That's right: BAD management.

True story. A little over a decade ago a bright young entrepreneur opened a small business in town. That business appeared to thrive and the young entrepreneur was well thought of in the community. His business attracted a lot of attention from the local media and developed a cult following. Then one day, without warning, the business closed. Who did the young entrepreneur, whom everyone thought so well of, blame for his business "failure"? He blamed Spartanburg, of course. Turns out this young entrepreneur didn't pay his taxes. Yet, he blamed Spartanburg.

Americans everywhere are being duped by CEO's of big and small companies alike who blame THEIR failures on somebody else. The government, the city they operate in, taxes, regulation, lack of support, foreign competition, etc. ESA is not the first nor will it be the last company to crap on their community, or their employees, or their stockholders, or the taxpayers.

Okay, I'll get down from my soapbox.

[clemsonfn]

George Dean Johnson brought the company to Spartanburg from Fort Lauderdale, sold it to the Blackstone Group who in turn sold it to another PE.

They are not the same company as when Johnson brought them here. Even their name has changed. It is not Extended Stay America anymore, it is Extended Stay Hotels.

Extended Stay was my first job out of college, starting in November of 2002 (a few months before the move to the downtown office). They were an active corporate citizen, and went out of their way to put Spartanburg's interest high on their priority list.

They were sold to the Blackstone Group in spring 2004, and the corporate culture changed immediately. Shortly after the acquisition, Blackstone replaced a number of executive positiions with their own people (as was their right). I went to a sales meeting in Atlanta a few months after everything went down, and was aghast when a room full of sales people started cheering about a hurricane that was in the middle of hammering Texas. The people that the hurricane was displacing had driven our area hotels to full occupancy; nevermind the lives that were ruined and property damage incurred......we were making MONEY! High fives all around.

That night, I noticed salespeople left and right taking their wedding rings off before a night on the town. I made it my business to find another job as quickly as possible.

[Sparkleman]

Here's what the SHJ has to say and its not much because they are not saying anything. You can tell GDJ is pissed though.

http://www.goupstate...g-for-Charlotte

[mallguy]

If I were an employee, I'd be irate. Having to sell one's house in a rough housing market and move to a more expensive city? Hopefully everyone's getting a good raise.

[spartanburgh]

If I read the article correctly, only about 50 employees will actually leave the Spartanburg headquarters. The rest will remain in Spartanburg as support staff. The 50 that will go to Charlotte must be top management and the official Headquarters staff people. Maybe the building want be vacant afterall? Just a few more square feet available for lease!

[Sparkleman]

They will be moving to or near the Ballentine section of Charlotte.

Initially only top execs and management will go, but eventually everyone will go. They do not intend to leave anyone here by the end of the year.

If you were not an exec or management, I don't know why you would even consider moving. Just start looking for another job.

David Britt knows more than he is letting on per what he said in todays SHJ. At some point the real reason will come out I just can't say at this time, but travel in and out of airports ain't it.

While it is a blow to downtown, it isn't the end of the world. These things happen. We already have a large, office vacancy rate downtown. There needs to be more of a push to improve quality of life in the city to attract business like this to town.

I want to see where they are moving to in Charlotte, because their choice in terms of location up here will say much more about the company and how committed they were to downtown to begin with. I'm betting on a suburban office park in southwest Charlotte.

[mallguy]

That "better air travel" reason isn't the best.

The commute from Ballentyne to the Charlotte airport can be 30 minutes or so. The commute from Spartanburg is what- an hour? If the company were moving to an office park on Billy Graham Parkway I could see a big difference in trip times to the airport, but not Ballantyne.

[spartanburgh]

Maybe the ESH building could become the new City Hall and County administration building in a consolidation move. The old County admin building could be a great place for an apartment complex for Wofford, VCOM and others. The old City Hall site could finally be leveled for new development. Then QS1 would still need to build a new office building if it needs additonal space. The property taxes lost by the ESH building could be repalced by new development on the other two sites.

[Sparkleman]

Maybe the ESH building could become the new City Hall and County administration building in a consolidation move. The old County admin building could be a great place for an apartment complex for Wofford, VCOM and others. The old City Hall site could finally be leveled for new development. Then QS1 would still need to build a new office building if it needs additonal space. The property taxes lost by the ESH building could be repalced by new development on the other two sites.

What do you plan on doing with the fire trucks and equipment that are down at city hall? You can hardly put that into a parking deck.

Plus Wofford has tons of space closer to campus for more apartments should the need arise.

Good thought though.

[spartanburgh]

Plans are for the fire department to be relocated anyway. VCOM will have 600 students in three more years and no housing. Not all students like to stay on campus at Wofford. The ESH building could then be altered to accomodate shops on the ground level with the landscape on the Morgan Square side replaced with a small court for outdoor seating as it should have been from the beginning. The top three floors and the basement could accomodate consolidated City and County offices.

[hub-city]

I'd like to see another company move into the building intead of city services. I feel it just would be a better fit. I do wish/wonder if there is any way to open up the center ground floor section to connect Morgan Square to the garage. With the square on one side and the fountain on the other, it would be a beautiful "entrance" to the square.

[Spartan]

That "better air travel" reason isn't the best.

The commute from Ballentyne to the Charlotte airport can be 30 minutes or so. The commute from Spartanburg is what- an hour? If the company were moving to an office park on Billy Graham Parkway I could see a big difference in trip times to the airport, but not Ballantyne.

The drive from the airport to Ballantyne is 20 minutes tops unless its rush hour. The idea of being in a place like that does not surprise me considering the type of corporation it is (being owned by an even larger firm). It's very tough when your management doesn't live in the same place as the HQ. Everyone in Charlotte was worried that Bank of America would relocate its HQ to Boston when they hired their new CEO (since he lives there)

What do you plan on doing with the fire trucks and equipment that are down at city hall? You can hardly put that into a parking deck.

Plus Wofford has tons of space closer to campus for more apartments should the need arise.

Good thought though.

I like the concept being discussed here. One other thing to consider is that the City's offices are spread all over town, and many without good reason. A consolidated location would help. A lot. That said, the ESA building is Class A office space, so it would make more sense to get another company to move in there.

[westsider28]

The 100,000 sq ft. Extended Stay HQ building is now on the market for sale or lease. We need to get another good company to fill all or some of that space, hopefully soon. Any ideas?

GSA Business article

[Sparkleman]

The 100,000 sq ft. Extended Stay HQ building is now on the market for sale or lease. We need to get another good company to fill all or some of that space, hopefully soon. Any ideas?

GSA Business article

As I have said before Lockwood Greene (called something else now) out on I-26 across from old Waccamaw would be an ideal tenant. How you approach them is beyond me.

[westsider28]

By "we", I meant the City of Spartanburg. But Lockwood Greene would be a great company to move in there.