A second groundbreaking is planned for Warwick, RI, in the second quarter of 2007 with plans for other locations in various stages of negotiations. NYLO accelerated its growth plan last spring when Lehman Brothers became an equity investor and strategic partner in the company. Franchising is slated to begin the first quarter of 2007. The company plans to open 50 hotels in suburban and secondary markets throughout North America by 2010.

NYLO Hotels CEO John Russell tells GlobeSt.com that NYLO Hotels will fill a price point niche in the marketplace. There are hotels, such as the Hilton Garden Inn, whose rates are about $100 per night and hotels, such as the Sheraton, whose rates are $150 or more per night. NYLO Hotel rates will be $115 to $140 per night. "We also saw the need for a newly designed brand to meet the lifestyle needs of today," Russell says.

Russell says the hotels will resemble loft-style residential dwellings with 300 sf of open floor plan space, 11-foot ceilings instead of the 8- or 9-foot ceilings found in most hotels and 6-foot by 5-foot windows. NYLO Hotels will also contain a 24-hour restaurant, bar and lounge called the Loft. The hotels are designed by Stephane Dupoux. "The entire design is very contemporary and technologically friendly," Russell says.

NYLO is testing some of its planned innovations at its 3,500-sf headquarters at 260 Peachtree St. The headquarters houses executive offices and a model guestroom, which serves as a showroom, test lab and model room. The company has held several focus groups at the property.

The 176-room Plano property will be located in the heart of Legacy, a 2,665-acre master-planned community. The 88,500-sf NYLO Hotel will be within walking distance of two major malls housing premier restaurants and stores. The 164-room Warwick property will overlook the Pawtuxet River and is located two and one-half miles from the TF Green International Airport. The 82,800-sf hotel will be in Pontiac Mills, which was once a 19th century textile mill but has been revitalized.