Building New

Why do hotel developers continue to build budget hotels in an already oversaturated property market? Suppose a new hotel could be built faster than normal, more durable with lower maintenance costs, more operationally efficient, and with additional revenue sources.

There seems to be a myth that all guests want a cheap “budget” hotel to stay in. The reality is that most guests would like to stray in an upscale hotel. They understand it will cost more and are surprised to find so called ‘budget  hotels” are  costing almost the same. For a developer and their hotel manager operating a budget hotel in an already oversaturated market means several difficulties. First the competition is so fierce the profit margins are very slim. Second, with so many competing hotels everyone operates with barely enough filled guest rooms to pay for expenses. Many days there are not enough occupied guest rooms to pay expenses so forget the profits. Third, because the hotel was built on such a tight budget the quality of construction is so low there’s constant and increasing maintenance and upkeep costs. Fourth, many architectural firm designing the property 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 to additional revenue sources or local community needs and thus the hotel must rely solely on room revenues.   

Suppose a unique and highly community-desired hotel could be built in a previously unknown location? Would you be interested? See our two hotel concepts portfolios for 12 hotels that are highly desired by the local communities and are 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. We do not involve ourselves in the oversaturated budget property market. We focus on designing and building upscale hotels. We can build them faster and at lower costs than conventional construction. Are modern construction methodology creates more durable buildings with lower maintenance costs and more 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 of which clients are unaware of. 

Why build another marginally profitable budget hotel in an already oversaturated market? 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