Independent supply, demand growth closer to brands after 2001
By Chad Church | hotelnewsnow.com
A few weeks ago, Carlo Wolff wrote an article about the pros and cons associated with developing an independent hotel versus a branded one. It’s a good follow-up to examine the historical performance of independent hotels compared to branded properties throughout the United States. To set the frame of reference for the scope of the segment, independent hotels account for 42.7 percent of the hotel properties in the STR United States hotel census and 31.2 percent of room supply. The aggregate of independent properties has trailed branded hotels in absolute key performance metrics for the total United States during the past 15 years. More specifically, branded hotels have outpaced independents in monthly room rate and occupancy by an average of 3.2 percent and 4.1 percent, respectively. The real story in the numbers, however, is in the raw data behind the performance metrics – supply and demand.