Third-Party Hotel Management Companies Facing Higher Guest Expectations as Room Rates Increase

With average daily room rates at hotels in North America now averaging nearly $150—roughly 15% higher than pre-pandemic levels,^[1]—hotel guests have become more critical than ever of the décor, amenities and food and beverage options provided by the world’s largest third-party hotel management companies. According to the J.D. Power 2022 North America Third-Party Hotel Management Guest Satisfaction Benchmark,^SM released today, customer satisfaction declines 4 points (on a 1,000-point scale) this year, as higher prices drive increased scrutiny.

“It is no secret that many of the major hospitality companies have put off upgrades and deferred maintenance while they were in survival mode during the pandemic,” said Andrea Stokes, hospitality practice lead at J.D. Power. “Now, however, as demand has climbed above pre-pandemic levels and consumers are paying record rates for hotel rooms, expectations are rising rapidly. Now is the time for hotel operators to invest in the maintenance and renovations that improve quality in the eyes of guests.”

Click here to read the full press release, including key findings from the study and which companies scored the highest in the benchmark rankings.

[1] STR Market Recovery Monitor, June 2022