Brands & segments
Midscale
What Midscale means
Midscale is a hotel chain scale classification positioned above economy and below upper midscale. Properties offer standardized, comfortable guest rooms with limited services, typically featuring free breakfast and Wi-Fi, but lacking full-service restaurants, extensive meeting space, or bell staff.
How it is used
Asset managers and developers target midscale properties for lower construction and operating costs compared to upscale tiers, delivering steady cash flows and gross operating margins often exceeding 40%. Revenue managers use midscale benchmark data to price competitively against local economy and upper midscale inventory. Investors monitor midscale performance as a barometer for middle-class domestic leisure and budget-conscious business travel demand.
Worked example
A developer builds a 100-room midscale property for $110,000 per key, excluding land. Achieving an adjusted ADR of $95 at 70% occupancy yields a RevPAR of $66.50, generating $2.427 million in annual room revenue with minimal food and beverage overhead.
Common mistake
Confusing midscale with upper midscale, which features higher construction costs, larger footprints, and slightly higher ADR expectations.
Related terms
Midscale in our reporting
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Frequently asked
+What does Midscale mean in a hotel?
Midscale is a hotel chain scale classification positioned above economy and below upper midscale. Properties offer standardized, comfortable guest rooms with limited services, typically featuring free breakfast and Wi-Fi, but lacking full-service restaurants, extensive meeting space, or bell staff.
+What is an example of Midscale?
A developer builds a 100-room midscale property for $110,000 per key, excluding land. Achieving an adjusted ADR of $95 at 70% occupancy yields a RevPAR of $66.50, generating $2.427 million in annual room revenue with minimal food and beverage overhead.
+What is the most common mistake with Midscale?
Confusing midscale with upper midscale, which features higher construction costs, larger footprints, and slightly higher ADR expectations.