Brands & segments
Upscale
What Upscale means
Upscale is a hotel chain scale classification positioned above Upper Midscale and below Upper Upscale. Properties offer full-service amenities, high-quality design, premium guest rooms, integrated food and beverage outlets, and dedicated meeting space, appealing to business travellers and affluent leisure guests.
How it is used
Operators use the Upscale designation to benchmark performance against direct competitors using STR data, guide capital expenditure budgets, and set pricing strategies. Revenue managers typically price these properties at a premium over midscale inventory while maintaining competitive RevPAR through strong corporate contract volume and leisure packages. Investors evaluate Upscale assets for higher GOPPAR potential compared to select-service tiers, balancing elevated construction and operating costs against strong average daily rates.
Worked example
A 200-room Upscale hotel in a primary city center achieves an 80% occupancy rate at an ADR of $220. This generates $35,200 in daily room revenue and a RevPAR of $176. The property supplements this with $45 per occupied room in non-room revenue from its full-service restaurant and meeting facilities, bringing Total RevPAR (TRevPAR) to $212.
Common mistake
Misclassifying an Upscale property as Upper Upscale can distort market penetration metrics and lead to unrealistic rate positioning against higher-tier competitors.
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