Full or Limited Service Hotels

Full or Limited Service Hotels

Article link - http://www.businesstravelnews.com/Procurement/Select-Service-Boom-Pros-Cons

The article is about the pros and cons of limited service hotels that recently experienced a boom in U.S hospitality industry. In 2014 and 2015 limited service hotels accounted for 70% of all rooms added in the U.S hotel industry. More and more hotel companies, owners and investors choose limited service hotels as they are easier to develop and offer better return on investment. One of the reasons is that the costs of full service hotels are so high that lenders are more likely to finance. Another reason for this is more people want customized experience and the problem with large-scale, full service hotels is that they are providing this generic experience. As companies are looking to cut down costs many hotels are starting to tier down the upper scale hotels realizing that if they provide quality product and service that caters to business travelers, provides them with everything they need at lower cost. However, as with everything there is a downside. Limited service hotels tend to lack space for conference and meeting rooms. Limited service hotel rooms are usually smaller, which means lack of some traditional features, like closets, dressers and desks.

I agree with the article, even though this article is backed up by statistics and facts, I can say from my own observations and experiences I have noticed that hotel industry is changing and more and more companies are building midscale and boutique style hotels. As mentioned in the article a lot of people nowadays are looking for experiences rather than just a bed to sleep in. This is relevant to the industry as the customer wants and needs change. Many businesses are looking for a niche market and the hotel industry is no different. As there is a growing demand and people