No-Frills Hotels Are Booming

While companies like Marriott struggle to fill rooms, toned-down “lite” hotels are thriving thanks to businesses cutting back on expenses and limited consumer spending:

Sun Sentinel: By scratching room service, restaurants and other amenities, the “limited-service” or “select-service” chains appeal to travellers looking to cut costs on vacation or slim-down an expense report.

The overall gloom surrounding the hotel industry brings an advantage to the limited-service hotels. Since they cost less to open, developers can more easily fund them in a climate where lending is extremely tight. And now they can snatch up more properties at bargain prices

Hotels, of course, remain the very worst area of commercial real estate.

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