In 2005, the NYLO Hotels show its loft-style hotel brand with a plan to create a chain of hotels and expand it across the country by 2010. Furthermore, this company envisioned another brand that in 2008 was announced as XP by NYLO Hotels.

NYLO Hotels planned to have more than 50 hotels opened by 2010.

Despite NYLO Hotels’ ambitions, the company has only opened two hotels, one in Plano, Texas and Warwick, R.I and are scheduled to open a new hotel by late June, 2009 in Irving, Texas.

In a year of recession the hotel industry hasn’t been untouched, however, John Russell, NYLO’s Chief Executive commented that their failure rooted in the fact that they first planned to expand by franchising.

Mr. Russell commented to the New York Times “NYLO had more than 40 franchises in some form of development or negotiation” however, the company is unlikely to have 30 hotels open by the end of 2011.

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