financeSkift··1 min·For: Owner, Investor, GM, Revenue
Major Hotel Groups Pivot to Midscale Conversions
Hospitality giants IHG, Marriott, and Hyatt are increasingly utilizing conversions of existing properties to expand their midscale portfolios more affordably and rapidly than new construction allows.
Key Takeaways
- 1Prioritize property conversions over new builds to scale midscale brands faster amid high construction costs and tight financing.
- 2Leverage the midscale segment to capture guest demand for affordable yet quality accommodations in high-cost urban markets.
- 3Monitor the rapid expansion of brands like IHG's Garner, which scaled to 100 hotels quickly, as a benchmark for conversion-led growth strategies.
Source: Skift
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