The success of the limited service budget hotel sector is a reality. Jan Freitag of STR recently called out demand for this type of product as part of his review of hotel development pipeline “These wouldn’t be so successful—there wouldn’t be so much interest {in development of these types of hotels} if there wasn’t so much demand. The demand numbers are fairly strong,” he said. However, caution needs to prevail, Fitch Ratings recently published an article on US Lodging Supply Growth and called out the near-term risk of over-supply in this sector. So limited service operators and owners are facing both high-demand situations at present and over-supply on the horizon. They need to squeeze high returns out of assets while times are good right now, whilst getting ready to have that competitive advantage in the near future. Limited service budget hotels have often focused on controlling costs in order to drive profitability. Providing guests with good value for money often means that overhead and admin costs must be kept to a minimum. This includes of course limiting the headcount in the hotels themselves, while at the same time avoiding bloated corporate offices. Doing things efficiently and using data as a key driver of decision making is therefore essential. But does it only come down to cost? Limited service owners and operators are increasingly seeing the returns from optimizing top-line revenues in addition to cost-control. Enter the increasing focus on revenue management in this sector. Let’s take a look at the different models that limited service budget hotels can apply to optimize their revenue performance. Download the whitepaper at IDeaS (PDF 890 KB)