2 years ago
A New Era for the Hotel Investor – Hotel Product Types Demand for New Hotel Product Types New hotel product types. The demand for hotel development is becoming apparent to many investors. Occupancy and average daily rates are at a 10 year high. Hotel investors are looking to take advantage of the opportunity, while the market is hot; but so many of these hoteliers are running into road blocks. Many primary, secondary and tertiary markets are already saturated with well recognized hotel franchises. As a hotel investor, how are you able break into these appealing markets and generate the return you’re looking for? New Hotel Product Types Coming Out of the Ground Marriot, Best Western and Hilton Hotels – They’re all doing it. They are all developing new hotel product types. Hotel organizations are becoming sensitive to the fact, that they need to open up the opportunity to new hotel investors to capitalize on the uptick in the hospitality industry. The organizations are rolling out new hotel product types that will complement existing hotels in a market place. These new products include Home 2 Suites by Hilton, AC Hotels by Marriot and Vib by Best Western. Below is an example video of what Best Western is doing with Vib. Target Market for New Hotel Product Types Many of these new hotel product types are marketed towards a new generation of consumers, the millennials. These concepts are designed with a new urban style and feel, with amenities that cater to era of technology savvy guests. Many of these new products will have rooms equipped smart TV’s allowing guests to stream on-demand content. Work spaces will be modernized with USB power ports for their electronics. And, attractive LED lighting will be used throughout the hotel, creating a welcoming atmosphere. Advantages of These New Hotel Product Types In this new era of hospitality, there is great opportunity for the hotel investor. As some of these hotel products are not yet established, many franchisors will create incentives for the franchisee to take on the risk of these pilot products. The demand for more of these hospitality options has hit a tipping point. If you are interested in learning more about these new hotel product types, please let me know, and I’ll be happy to give you more information. Also, I invite you to read two of my other hospitality related blog posts. One of them looks at how Customer Reviews Can Impact Hotel Listings for Sale, and the other one looks at Full Service Hotels Versus Limited Service Hotels. Thank you for reading, and I welcome you to leave comments in the section below. Advisor Top BarBryan Morelock Hospitality Real Estate About Bryan Morelock - Over more than five years, Bryan has gained significant knowledge of the retail and restaurant sectors. More recently, he has focused on honing his skills and working with clients in the hospitality sector, which he is particularly interested in. Click here to read his full bio, or if you would like to contact him, you can call him at 850-434-7500, or email him at BMorelock@SVN.com.
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Sperry Van Ness