Originally defined as a hotel without restaurant or banquet facilities, the services and amenities offered to guests of limited-service hotels are typically simple (such as offering complimentary continental breakfast). However, these services and amenities have expanded over the past decade, and in today’s market, a limited-service hotel’s range of amenities might include a business center, a fitness room, a guest laundry facility, a market pantry, an indoor and/or outdoor pool and whirlpool, and small meeting rooms.
Select-Service or Limited-Service hotels have rooms-only operations, (i.e. without food-and-beverage service) or offer a bedroom and bathroom for the night, but very few other services and amenities. These hotels are often in the budget or economy group and do not report food and beverage revenue. This segment has been the fastest-growing hotel segment over the past 20 years due to consumer drive for affordable accommodations that still offer the necessary or most frequently utilized creature comforts of the full-service hotel.
One of the appeals of select or limited-service hotels is the ease and relative simplicity of development, generally incorporating fewer rooms (<200) and fewer ancillary spaces making them less expensive and more efficient from a developer standpoint. In addition, the lack of restaurant facilities makes these properties easier to run for owner/operators and improves net operating income.
Investors without restaurant experience should find select service properties to be a more attractive option, minimizing the challenge of operations by eliminating the major Food & Beverage (F&B) component of the full-service property type. These properties are well suited for absentee owners utilizing professional management as well as hands-on owner/operators.
Examples of Select/Limited Service Hotels and Motels
America’s Best Value, Element, La Quinta, SpringHill Suites, AmeriHost Inn, Fairfield Inn, Lexington Collection, Staybridge Suites, Baymont Inn, GuestHouse, MainStay Suites, Studio 6, Budget Host, Hampton Inn, Microtel Inn, Summerfield Suites, Cambria Suites, Hawthorn Suites, Motel 6, Super 8, Candlewood Suites, Holiday Inn Express, Park Inn, TownePlace Suites, Comfort Inn, Homewood Suites, Red Roof Inn, Vagabond Inn, Country Inn, Key West Inn, Residence Inn, Value Place, Country Hearth Inn, Knights Inn, Sleep Inn, Wingate Inn