Dive Brief:
- Prism, formerly OYO parent company Oravel Stays, is bringing its European apart-hotel Belvilla brand to the U.S. after securing 10 properties through the Sonder bankruptcy court process, the company announced Thursday.
- The former Sonder properties in New York City, Seattle, New Orleans and other top U.S. markets will convert under the lifestyle Belvilla brand, representing the flag’s first operational presence outside Europe, per the release. Prism is taking over the properties after apartment-style accommodations provider Sonder cut ties with Marriott International and entered bankruptcy in November.
- The U.S. “represents an important opportunity” for Belvilla, as the brand plots a “deliberate and selective” expansion in the region, Ankit Tandon, global chief operating officer and Europe CEO at Prism, said in a release. Prism joins other hospitality players that have taken over Sonder properties in the wake of its collapse.
Dive Insight:
The Dutch and Court Square in Long Island City in Queens, New York, are among the properties Prism secured in the bankruptcy proceedings. The company will also take over The Industrialist in Brooklyn, New York; RailSpur in Seattle; The Schaeffer and The Louie in New Orleans; Skyline in Denver; The Queen in Philadelphia; Ida in Phoenix; and East 5th in Austin, Texas.
These properties “met Belvilla’s strict criteria on unit economics and operational feasibility,” Prism said in the release. As part of its U.S. expansion, the company is focused on properties that “can deliver a consistent guest experience while maintaining strong cost discipline.”
“We chose properties where the fundamentals work from day one, ensuring a balanced and sustainable model for guests and property owners,” Tandon said. “We are already in touch with additional owners who are keen to sign up with Belvilla as we expand our presence in the market.”
As part of the initial U.S. rollout, The Dutch, Court Square and The Louie will operate under the newly introduced upscale Belvilla District 6 brand, the release detailed. “Belvilla will initially operate a limited number of properties, as part of a measured, economics-led expansion strategy,” per the release.
The U.S. expansion comes several months after Oravel Stays rebranded to Prism to “reflect the company’s expanded global portfolio and long-term vision,” per a September release.
With this latest move, Prism joins hospitality players, including New York-based apart-hotel company Kasa, that have assumed Sonder properties following its bankruptcy.
In November, Kasa CEO Roman Pedan told Hotel Dive his company was in talks to take over Sonder properties in New York, Chicago, Philadelphia, Phoenix, Seattle and Washington, D.C., among others cities in the U.S. and Canada. According to Pedan, Sonder’s master-lease operating approach was in part to blame for the company’s downfall.
In January, Kasa entered into a strategic combination with residential hospitality provider Mint House.
