Brands & segments
Upper upscale
Upper upscale is a chain scale classification defined by STR for full-service hotels positioning just below luxury properties. They feature extensive premium amenities, multiple food and beverage outlets, substantial meeting space, and high service levels, targeting affluent business and leisure travelers.
How it is used
Operators and investors use this classification for benchmarking performance, underwriting acquisitions, and evaluating brand affiliation. Revenue managers at upper upscale hotels track competitive sets within the same chain scale to establish pricing boundaries, balancing high Room ADRs against group contract volume. Feasibility studies rely on this tier to determine optimal construct costs versus projected RevPAR, as these properties require larger capital expenditures for public space design, spa facilities, and extensive conference infrastructure compared to upscale counterparts.
Worked example
A 400-room metropolitan Marriott generates $220 ADR at 75% occupancy, yielding $165 RevPAR. Despite lower rate ceilings than a luxury Ritz-Carlton, its 30,000 square feet of banquet space drives additional non-rooms revenue, keeping total RevPAR competitive across its market subsegment.
Common mistake
Misclassifying a select-service property as upper upscale simply due to a high ADR, ignoring mandatory full-service criteria like dedicated concierge and extensive meeting facilities.