The midscale hotel market is undergoing significant transformation and thriving in this dynamic landscape requires adaptation. But how exactly should stakeholders in midscale hotels ensure they remain abreast of the evolution?
One strategy, Marriott SVP & global brand leader for select service Diana Plaza Trowbridge says, is a rethink of amenities and service offerings. As consumer preferences continue to shift, midscale hotels must adapt by offering amenities that balance guest expectations with operational efficiency.
“The customer is always going to want a lot more features and benefits, but it’s about ensuring that we’re balancing guest demands with the owner’s proposition," she says, highlighting the delicate balance between meeting customer expectations and maintaining cost-effective operations.
For Michael Burnoff, senior vice president of acquisitions at Peachtree Group, the success of midscale hotel investments hinges on aligning financial viability with consumer demand. He emphasizes the importance of thorough market analysis and a keen understanding of the operating model.
“The biggest challenge that we have today on the equity side is bringing workable and attractive financing to the table. So ultimately the numbers have to make sense - it is focusing on the revenue and on the profitability of the asset.”
Read the full article on our sister site, Hospitality Investor.
This surge in the midscale hotel market is driven by several key factors. For more useful insights, read Hotel Management's Midscale Market Special Report.