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