The secret to a great branded hotel stay may be in an aspect that guests do not often realize: the third-party management company operating the hotel, which creates consistent, pleasurable and problem-free guest experiences. According to the J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction Benchmark released today, overall guest satisfaction with branded hotels run by the nation’s largest third-party management companies improves significantly this year, outperforming both chain-managed and independently operated hotels.
"Guests have faced rising costs, including for hotel stays, and guests have many options about how and when to spend money," Andrea Stokes, hospitality practice lead at J.D. Power, told Hotel Management. "In this difficult environment, third-party management companies that operate branded hotels are really standing out from the pack. They’re delivering guest experiences that often surpass those of hotels managed by chains or are independently operated by focusing on keeping the rooms clean and the hotel properly maintained as well as making sure staff is well trained and helpful to guests. Even as guests pay higher prices, data from J.D. Power shows guests believe they are getting good value for their money at branded hotels operated by the largest third-party management companies.
“Third-party management companies operating branded hotels are really firing on all cylinders by consistently delivering well-maintained buildings, cleaner guest rooms and an overall better guest experience than those seen among independently operated branded properties and even chain-managed properties,” Stokes said. “What is most noteworthy is that the largest third-party hotel operators are delivering an improved level of staff service even as higher room rates are pushing guest expectations higher.”
Other key findings include:
- Overall satisfaction rises significantly year over year: Overall guest satisfaction with hotels run by third-party management companies is 683 (on a 1,000-point scale), up 8 points from a year ago. The year-over-year improvement is driven primarily by improvements in satisfaction with cleanliness of guest rooms; maintenance and upkeep of the hotel; and hotel staff responsiveness to guest questions and requests.
- Improved guest experience offsets higher prices: Although guests at branded hotels say they are paying more for their rooms this year, overall improvement in perceived value for price for the largest third-party managed hotels has risen 6 points, on average, from 2023. This indicates that guests perceive these hotels provide good value for quality and service received.
- Faster front desk service and improved staff responsiveness: Across all operational areas in the benchmark, staff service achieves the highest guest scores. Satisfaction with staff service has increased year over year, driven by significantly higher scores for front desk staff efficiency and responsiveness to guest questions or concerns.
Benchmark Ranking
Davidson Hospitality Group ranks highest in overall guest satisfaction for a third consecutive year, with a score of 735. HEI Hotels and Resorts (705) ranks second and White Lodging (704) ranks third.
The North America Third-Party Hotel Management Guest Satisfaction Benchmark, now in its fifth year, evaluates guest satisfaction with branded hotels that are operated by the largest third-party management companies. It is based on six factors (in alphabetical order): communications and connectivity; food and beverage; guest room; hotel facilities; staff service; and value for price. The benchmark includes third-party hotel operators with more than 14,000 branded hotel rooms under management and is based on 4,907 guest responses for branded hotel stays from May 2023 through May 2024.
For more information about the North America Third-Party Hotel Management Guest Satisfaction Benchmark, visit https://www.jdpower.com/business/third-party-hotel-management-guest-satisfaction-benchmark.