Kiteville brings budget-conscious extended-stay model to Cedar Rapids

Kiteville, a company focused on no-frills, extended-stay accommodations, has opened its first Iowa location at a former Cedar Rapids hotel. Based in Philadelphia, Kitevilleopened its doors in November 2023 to its newest, and largest, location in the former Ramada Hotel and Convention Center, 525 33rd Ave. SW. Budo Bunul, founder and CEO of Kiteville, said the company’s model provides a new option for certain business travelers – for example, those who may be moving to the community for a new job, but haven’t yet found a home or apartment. In short, Kiteville could be described as an “AirBnb”-style facility on a more institutional level, Mr. Bunul said. “We provide short-term and extended-stay accommodations, with technology-optimized self check-in and check-out,” he said. “You can make your reservation online, pay everything online and receive your check-in details online. And it’s all operated by electronic door entry.” Kiteville facilities differ from traditional hotels, Mr. Bunul said, in that they don’t provide many of the amenities associated with full-service hotels – features such as on-site restaurants, swimming pools or fitness facilities. There are also no front desk workers. Mr. Bunul said Kiteville does provide employees on-site for full essential housekeeping and maintenance services, he noted, much as one might expect at a hotel. The Cedar Rapids location, for example, has about five employees overall. The no-frills approach allows Kiteville to offer quality accommodations at a lower price point than traditional hotels and motels, Mr. Bunul said. “We create a different value,” he said. “Our model is more streamlined to create a safe, clean, affordable place for people who are transitioning to the community. Say you’ve got a job in Cedar Rapids and your salary is maybe $40,000 to $60,000. Maybe you don't have a place to live right away, so you need a month or two to find an apartment or buy a house. You could be in the area for a school program for a month or two. You could be a consultant or a contractor in the area. Our goal is not to appeal to a one-night stay, or someone who’s in the area for just one event. Our goal is to serve populations that are in the area for more like an extended stay.” Nationwide, Kiteville has about a half dozen properties similar to the former Cedar Rapids Ramada, as well as individual properties on a smaller scale, Mr. Bunul said. With approximately 150 rooms, however, Cedar Rapids is the company’s largest location, he said. Kiteville manages its properties through an agreement with the property owners, Mr. Bunul said, providing an advantage for facilities that may be underutilized in certain markets – as was the case with the Cedar Rapids Ramada, he said. “It’s the same ownership, but they were losing a lot of money post-pandemic,” he said. “We are able to reduce some of the costs for properties that are struggling or are not necessarily able to operate at a comfortable financial level. We put our innovations in place to make those properties viable again in the market.” The Kiteville model is also advantageous for smaller property owners who may want to avoid maintenance issues with their properties, he said. “If a guest comes in and causes issues, or there’s a gas issue, you may not be there to take care of it,” he said. “Our model is being professional in managing properties, with boots on the ground. We're able to resolve any issues or problems on-site, as well as serving the guests appropriately.” Kiteville bookings are handled through the company’s website, as well as through online travel sites such as Expedia and booking.com, Mr. Bunul said. Mr. Bunul said he’s also worked with representatives from the Cedar Rapids Metro Economic Alliance and other local employers to share the word about Kiteville’s services, and that the reception so far has been positive. Even in an area of southwest Cedar Rapids that has numerous hotels and motels, Kiteville’s new model has helped increase competitors' occupancy rates as well, Mr. Bunul said. “We’re taking the segment focus in a different direction in the area, and it’s helped the other hotel business in the area,” he said. “We’ve had a few people from neighboring hotels stop in to see what’s happened, and they’ve started seeing an influx of customers to their sites, because we wouldn't necessarily accommodate those shorter-term customers. I feel really great that we have made this change, because those hotels also needed some business, and competing for the same customers doesn’t create an economic value for all the stakeholders.” So far, Kiteville has about 600 units available nationwide, Mr. Bunul said. But based on his 20 years of experience in the hospitality industry, as well as 15 years of startup experience, he said he expects the company’s motel to continue to grow. “We don't have to offer something like a full hotel, where costs could go super high,” he said. “We’re creating spaces that are fully furnished and fully maintained, the utilities are taken care of, all the necessary maintenance and housekeeping is taken care of, all at an affordable cost. We’re hearing there is a real need for this type of service. Plus, it appeals to the growth of the local economy, being able to offer these services.” The hotel property now operated as Kiteville was first opened in 1976 by partners Jack Zazza and Don Broulik as the Sheraton Four Points Hotel. The property then became a Clarion hotel before being sold at sheriff’s auction in February 2015. The facility lost the right to use the Clarion name in 2018 after employees complained the hotel’s then-owners were having trouble paying them adequately or on time. The hotel then became a Ramada and was extensively remodeled before closing in November 2023 and transitioning to Kiteville.