We Know Things

Insights

Intent

Why we focus on premier select service

 

We did not just happen into the select service market.  After buying and selling over $5 billion in hotels, we have gained a few insights.  Simpler is better.  Higher returns are better.  We make deals that make sense.  The following is a sample of how we decide to allocate our resources in the premier select service area.

Premium Select Service

Typical Keys
Typical Room Revenue
Average Meeting Space
125
94%
< 2,500 SF

Full Service

Typical Keys
Typical Room Revenue
Average Meeting Space
250
73%
7,500 SF

Advantages of Premium Select Service

LESS

Rooms to fill
Staff
Square footage
Complex
Food and Beverage
Maintenence and replacement of items
Volatility in downturns

MORE

Consumer demand - broader marketplace
Lender options
Disposition options
Operating efficiencies
Complimentary items
Complimentary items - hot breakfast, happy hour
Easily renovated - standardized FFE and OSE packages
Ability to drive higher margins

Key Takeaways

Room Revenue is typically ~94% of total revenue

Standardized, efficient operating model

Operating efficiencies, and lower cost drive higher returns on investment