Hotel Management Companies Drive Significantly Better Guest Experiences, J.D. Power Finds
The secret to a great branded hotel stay may be in an aspect that guests do not often realize: the third-party management company operating the hotel, which creates consistent, pleasurable and problem-free guest experiences. According to the J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction Benchmark,SM released today, overall guest satisfaction with branded hotels run by the nation’s largest third-party management...
Photo by J.D. Power
TROY, Mich. - The secret to a great branded hotel stay may be in an aspect that guests do not often realize: the third-party management company operating the hotel, which creates consistent, pleasurable and problem-free guest experiences. According to the J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction Benchmark,SM released today, overall guest satisfaction with branded hotels run by the nation’s largest third-party management companies improves significantly this year, outperforming both chain-managed and independently operated hotels.
Third-party management companies operating branded hotels are really firing on all cylinders by consistently delivering well-maintained buildings, cleaner guest rooms and an overall better guest experience than those seen among independently operated branded properties and even chain-managed properties. What is most noteworthy is that the largest third-party hotel operators are delivering an improved level of staff service even as higher room rates are pushing guest expectations higher. Andrea Stokes, hospitality practice lead at J.D. Power
Following are some of the key findings of the 2024 benchmark:
- Overall satisfaction rises significantly year over year: Overall guest satisfaction with hotels run by third-party management companies is 683 (on a 1,000-point scale), up 8 points from a year ago. The year-over-year improvement is driven primarily by improvements in satisfaction with cleanliness of guest rooms; maintenance and upkeep of the hotel; and hotel staff responsiveness to guest questions and requests.
- Improved guest experience offsets higher prices: Although guests at branded hotels say they are paying more for their rooms this year, overall improvement in perceived value for price for the largest third-party managed hotels has risen 6 points, on average, from 2023. This indicates that guests perceive these hotels provide good value for quality and service received.
- Faster front desk service and improved staff responsiveness: Across all operational areas in the benchmark, staff service achieves the highest guest scores. Satisfaction with staff service has increased year over year, driven by significantly higher scores for front desk staff efficiency and responsiveness to guest questions or concerns.
Benchmark Ranking
Davidson Hospitality Group ranks highest in overall guest satisfaction for a third consecutive year, with a score of 735. HEI Hotels and Resorts (705) ranks second and White Lodging (704) ranks third.
The North America Third-Party Hotel Management Guest Satisfaction Benchmark, now in its fifth year, evaluates guest satisfaction with branded hotels that are operated by the largest third-party management companies. It is based on six factors (in alphabetical order): communications and connectivity; food and beverage; guest room; hotel facilities; staff service; and value for price. The benchmark includes third-party hotel operators with more than 14,000 branded hotel rooms under management and is based on 4,907 guest responses for branded hotel stays from May 2023 through May 2024.
For more information about the North America Third-Party Hotel Management Guest Satisfaction Benchmark, visit https://www.jdpower.com/business/third-party-hotel-management-guest-satisfaction-benchmark.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto-shopping tool can be found at JDPower.com.
About HEI Hotels & Resorts
HEI Hotels & Resorts, headquartered in Norwalk, Conn., is a leading hospitality investment and management company that owns or operates approximately 100 luxury, upper-upscale and upscale independent and branded hotels and resorts throughout the United States. HEI's branding partners include Marriott, Hilton, Hyatt, IHG, Choice and Wyndham. The company is renowned for its commitment to its associates under the culture of HEI Loves, its revenue management, profit contribution and empirically based real estate value creation, driven by a full complement of proprietary software tools to set and exceed targets on a fully integrated basis. HEI works hand-in-hand with institutional capital partners on existing assets under management as well as sponsored acquisition opportunities. The company has ample equity capital and strategically co-invests with its partners on many transactions. To learn more about HEI, please visit www.heihotels.com.
About White Lodging
White Lodging, established in 1985 by hospitality icon Bruce White, has evolved into one of the country's largest privately held hospitality companies focused exclusively on highly curated urban and lifestyle properties. The company develops, owns and manages a portfolio of brands in destination-driven markets, including Austin, Chicago, Denver, Nashville, Indianapolis, and Louisville. With a focus on elevated and experiential service, White Lodging's portfolio consists of approximately 60 premium hotels; a private collection of world-renowned luxury ranches; 50 locally relevant, award-winning restaurants; and 10 market-leading rooftop bars. White Lodging focuses on hiring and developing hospitalitarians that are committed to exceptional service and fostering meaningful connections. White Lodging is the second highest in the 2021 J.D. Power Guest Satisfaction Benchmark for third-party management companies, and has been near the top since the first benchmark was published. For more information about White Lodging, visit www.whitelodging.com or follow the company on LinkedIn, Instagram and Facebook.
About Davidson Hospitality Group
Davidson Hospitality Group is an award-winning, full-service hospitality management company comprised of 87 existing hotels and resorts; more than 230 restaurants, bars, and lounges; and 1.4 million square feet of meeting space across the United States, Europe, and the Caribbean. A trusted partner and preferred operator for Marriott, Hilton, Hyatt, Kimpton, Margaritaville, and Nobu, Davidson offers a unique entrepreneurial management style and owners' mentality that provides the individualized personal service of a small company, enhanced by the breadth and depth of skill and experience of a larger company. In keeping with the company's heritage of delivering value, Davidson Hospitality Group features four highly specialized operating verticals: Davidson Hotels, Pivot, Davidson Resorts and Davidson Restaurant Group. For more information, visit www.davidsonhospitality.com. Connect with us on LinkedIn: @DavidsonHospitality. Follow us on Instagram: @davidsonhospitality and TikTok: @davidsonhospitality. #DavidsonHospitality
Media Contact
Geno Effler
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