Chain Scale: Different Flags for Different Travelers


Chain Scale: Different Flags for Different Travelers


Think about the time you stayed at a hotel. Was it for work? maybe a vacation?

Maybe it was for an extended period of time? It turns out, major hotel brands create different products or “flags” to serve a wide variety of needs for their customer base, and knowing how to differentiate between them allows a market to build several different types of hotels. Hotel companies know that their customers have different preferences, depending on how much they’re willing to spend, and for what reason they are traveling. Here’s a quick rundown of some of the basic hotel types, or chain scales, that major hotel brands offer:

I’m John with, and we’ll be taking a inside look at different types of chain scales.


#1 Full-Service Hotels: Full Service Hotels are typically found in large city centers and other scenic destinations. They often have amenities including on-site restaurants, spas, bars, lounges, and banquet rooms.


#2 Select-Service Hotels: Select-Service Hotels are the most popular and consistent option for many corporate and leisure travelers due to their balance of amenities and price. Select-Service hotels are convenient for corporate travelers who can meet in conference rooms and business centers within the hotel near or around their work destinations. It’s also a place they can unwind in social public spaces that often feature a food and beverage component.


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#3 Limited-Service Hotels: These hotels offer the bare essentials such as free WIFI and free hot breakfast. These hotels take a skip on the amenities that their full-service counterparts might have. You won’t find spas or restaurants, but they are extremely efficient, and many limited service hotels now have  modern fitness rooms and business centers.


#4 Economy: These hotels appeal to the budget conscious traveler. Economy hotels like Motel 6 and Days Inn offer basic lodging without frills or many amenities.  For that reason, economy hotels/motels typically cost less to stay at.


#5 Extended Stay Hotels: For travelers looking to stay for a longer trip, extended stay hotels are a great option. Extended stay hotels have in-room kitchenettes for individuals who are staying away from home slightly longer than the typical business or leisure trip. These hotels appeal to corporate travelers working for long-term projects or families in-between moving.  Many technology parks with foreign IT workers and hospitals often build a extended stay hotel on their campus.


So there you have it! As a prospective investor, you’ll have to make smart decisions about what type of hotel makes the most sense to invest in. Knowing the location and nearby demand drivers will help you select the best type of hotel product.

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