Why Select Service?
Select-service hotels appeal to cost-conscious travelers on the go. Both leisure and business travelers appreciate generous lobbies, common areas, gathering space, and very comfortable rooms. In most cases, complimentary hot breakfast is served each morning. Pool areas, business conference and training areas, limited event venues, a generous fitness center, fast wireless internet, and convenient parking make these hotels a favorite among a large segment of guests.
Select-service hotels usually have the lowest operating costs of the three hotel categories due to their lack of extras, as opposed to full-service hotels that require a larger staff and larger facilities to accommodate guests who require more luxurious amenities. The select service model provides clarity of the expense profile and the margins these properties produce. Another element that appeals to investors is the diversification of risk. You can reduce your risk by owning multiple select-service hotels rather than one larger hotel.
The segment does better than others. Its resiliency has been clearly demonstrated in both up and down markets.