Home | Business News | Browse by Publication | B | Business Travel News

Midprice hotel brands stay on development path.

Article Excerpt
Strong performance by brands within the midprice sector and indications of continued growth have left hotel companies eager to expand their brands and prompted developers to reach out for new contracts. Most of this growth has been among midprice without food and beverage brands, primarily because limited-service properties tend to operate more efficiently and net higher profits than full-service, due to lower operating costs. Developers also are attracted to these projects because they are cheaper to build than upscale or luxury properties.

With building costs continuing to soar, midprice properties remain attractive to developers due to desirable prototypes and profit margins that typically are higher than other types of properties.

"From a feasibility study for new hotels, midprice hotels are where it is at," said Bruce Baltin, senior vice president and executive in charge of PKF Consulting's practice in Los Angeles. "Midprice properties are what we are seeing developed these days because of availability of land and construction costs opposite a...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!