Definition
Limited-service hotels are generally economy- or budget-friendly hotels that offer on-site accommodations, like a restaurant, without the food/beverage component. This may include Extended-Stay hotels since individual rooms offer kitchenettes. The hotel may only offer coffee/tea service in the lobby. Limited-service hotels may offer food and beverages in the form of a vending machine, but this type of hotel does not include breakfast service, restaurant, or bar with food service.
Overview
Although limited-service hotels used to be more modest accommodations, a lot has changed in the last few years. Now, the term Limited-Service refers specifically to a lack of on-site F&B (food and beverage service) rather than the level of amenities offered.
It is important to remember that when we speak of Limited-Service, we are speaking about the hotel specifically. A hotel may offer catering for meetings, “to-go” picnic lunches, vending machines with food, or even a glass of wine to welcome new guests. The main takeaway is that the hotel itself is not preparing or serving food in a way that would require food service to be permitted.
Hotel owners may choose to be Limited-Service based on a variety of factors:
- Availability of a hotel kitchen/food prep area
- Space/Lack of Space for food service or breakfast buffet
- Limited time and/or staffing available to offer food service
- If a majority of hotel rooms offer a kitchenette, food service may be redundant
- An adjacent restaurant may offer discounted/free breakfast through an arrangement with the hotel
Investment Style
This investment style is great for an absentee owner with an on-site manager or owner without food and beverage experience. Investors in Limited-Service hotels can focus on guest experience and value for the money without having to devote staff and space to Food & Beverage (F&B) services.
Examples Of Limited-Service Hotels
Some well-known limited-service hotel brands include Hilton Hotels & Resorts (Hampton by Hilton, Tru by Hilton), Marriott International (Fairfield by Marriott, Moxy Hotels), Hyatt Hotels Corporation (Hyatt Place), InterContinental Hotels Group (IHG) (Holiday Inn Express, avid hotels), Choice Hotels International (Comfort Inn & Suites, Sleep Inn), and Wyndham Hotels & Resorts (La Quinta by Wyndham).