Another Budget Hotel or ?

Why are Budget hotels still being built in an already oversaturated market. They’re in a cutthroat low profit margin competitive market. Yet hotel developers continue to build them, why? Suppose you could have a new hotel built faster than normal, more durable with lower maintenance costs, more operationally efficient, with additional revenue sources, and frequent guests who return and often. Does this make financial sense?

An erroneous belief persists that all guests want cheap “budget” hotels to stay in. Most guests would actually prefer to stay in a quality hotel. They understand it will cost a bit more. They’re continually surprised to find so called ‘budget  hotels” costing almost the same. They’re looking for an alternative.

We all know budget hotels face several difficulties. First the competition is so fierce, profit margins are very slim. Second, with so many competing hotels, everyone frequently operates with barely enough filled guest rooms to pay for expenses. More often, there are many days when there are not enough occupied guest rooms to pay expenses, so forget profits. Third, because the hotel was built on such a tight budget the quality of construction is typically low. There’s  constant and increasing maintenance and upkeep costs. Fourth, many architectural firm designing hotel properties only care about what the building looks like and have little real knowledge of hotel operations or how to enhance them. Lastly there is little thought, if any, about taking advantage of additional revenue sources or local community needs. Consequently, the hotel must rely solely on room revenues.

There is a real alternative. The upscale market of themed 4-star hotels has a limited supply in highly desirable locations. We’ve discovered 12 sites in central Florida where highly desired hotels could be built in previously unknown locations. What’s even more desirable is our operational and profitability approach. See our hotel concepts portfolios for these 12 hotels, All are highly desired by the local communities and in locations with little or no competition.

Architectural Design Partners, Inc is different. We bring 50 years of hospitality operational knowledge to each project. We know how hotels operate and focus on maximizing operational efficiency to maximize profits and reduce operational and maintenance costs. We are not involved in the oversaturated budget property market. Our focus is on designing and building profitable upscale hotels. We build them faster and at lower costs than conventional construction. Are modern construction methodology creates more durable buildings with lower maintenance costs. Our extensive hotel operation knowledge enable us to increase operational efficiency. We also research local community needs to determine additional revenue source to be included in the new hotel. We don’t just design and walk away, we build, furnish, and supervise the project from start to finish. We have access to hundreds of thousands of suppliers most clients are unaware of. 

Building in the marginally profitable, oversaturated budget hotel market is not financially realistic. Are you ready to consider a very attractive profitable alternative. Let’s talk.

I’m Harry, managing director of Architectural Design Partners. See unique customizable new construction concepts in our 2 hotel portfolios on our web site: https://www.architectdesignpartners.com

For a free enlightening consultation fill out the request on our website or email me at architecturaldesign.partners@gmail.com