Select-Service Hotels

The definition of “select-service” within the lodging industry may vary from person to person, but there is no doubt that properties in this segment are the most popular among developers. Using the broadest definition of select-service, this category comprised an estimated 89 percent of the total hotel projects under construction according to the December 2016 U.S. Hotel Pipeline report from STR.

As the name implies, select-service properties offer limited degrees of services and amenities compared to full-service hotels. While most select-service properties do not contain extensive meeting, recreational, and retail facilities, there is diversity when it comes to the offering of food and beverage (F&B) service for sale. Within the select-service category, there are brands that offer retail F&B services and others that do not.

To gain a better understanding of the performance of select-service hotels, we analyzed a group of 233 properties that provided year-end operating statements in CBRE’s Trends in the Hotel Industry survey each year from 2010 through 2015. One-third of the properties in the sample offer some degree of retail food and beverage service (e.g., Hilton Garden Inn, Courtyard by Marriott, Hyatt Place), while the remainder of the sample are true limited-service hotels (e.g., Hampton Inn, Fairfield Inn, Comfort Inn). For the purposes of this analysis, we only looked at properties that operate in the upper-midscale and upscale segments, and are affiliated with brands that are generally considered to be “select-service.” Excluded from the analysis were extended-stay hotels and full-service suite hotels, as well as traditional full-service hotels, convention hotels, and resorts.

Facilities

Coffee : Cafe Coffee Day
Parks : Nani Nani Park
Groceries : Reliance Green
Bars : Night King
Restaurants : Brown Place

Listing Type Specific

Breakfast Buffet
Outdoor Terrace
Twin Beds
Gym
Meeting Rooms
Solarium

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