Investing in Select-Service Hotels: Why Marriott & IHG Brands Deliver Stability and ROI
Select-service hotels have emerged as resilient, high-performing assets, offering investors consistent returns and operational efficiencies. With the right brand affiliations, these properties can provide stable cash flows and broad market appeal. At TNB Hotels, we're developing a dual-branded Fairfield Inn & TownePlace Suites by Marriott in Ontario, Oregon, strategically located off the I-84 corridor. This project represents a unique opportunity to invest in a high-demand market backed by two of Marriott's most trusted brands.
Why Select-Service Hotels?
Select-service hotels bridge the gap between full-service luxury and limited-service economy, focusing on core amenities like comfortable rooms and essential services. This model results in:
Lower Operating Costs: Streamlined services reduce labor and maintenance expenses.
Consistent Demand: Appeals to both business and leisure travelers.
High Brand Recognition: Established franchises like Marriott and IHG drive repeat business.
Scalable Operational Models: Shared amenities and services enhance profitability.
Industry Performance Metrics:
Gross Operating Profit Margin: Select-service and extended-stay hotels achieved a 41.3% margin through September 2023, surpassing full-service hotels by 6.1 percentage points. (hoteldive.com)
Investment Growth: Since 2021, the sector has attracted $62.6 billion in investment, nearly double the total of the previous four-year period. (hotelsmag.com)
Average ROI: Industry experts suggest a reasonable return on hotel investment ranges between 6-12%, depending on various factors. (siteminder.com)
Hotel revenue growth trends indicate stable returns for select-service and extended-stay properties in 2023.
Top Select-Service Brands to Consider
Marriott International:
Fairfield Inn & Suites: Reliable, value-oriented accommodations for business and family travelers.
TownePlace Suites: Apartment-style rooms with full kitchens for extended stays.
SpringHill Suites: Spacious rooms with additional amenities for business travelers.
Residence Inn: Extended-stay leader with full kitchens and living spaces.
AC Hotels: European-inspired, design-focused select-service brand.
IHG Hotels & Resorts:
Holiday Inn Express & Suites: Consistent guest experiences for business travelers.
Candlewood Suites: Extended-stay brand with full kitchens and a homelike feel.
avid hotels: Streamlined services and modern design at affordable rates.
Staybridge Suites: Extended-stay accommodations with a social atmosphere.
Hotel Indigo: Boutique-inspired, integrating local flavor with modern amenities.
Select-service hotel brands under Marriott and IHG offer diverse investment opportunities across business and extended-stay segments.
Why Ontario, Oregon?
Ontario, Oregon, serves as a strategic market for select-service hotels, capturing both business and leisure traffic along the I-84 corridor. With growing regional demand and minimal branded hotel competition, the dual-brand Marriott project is poised to deliver strong occupancy and consistent returns.
Graphic Placement:
Caption: Ontario, Oregon’s location along the I-84 corridor offers significant exposure to both transient and extended-stay travelers.
The Dual-Brand Advantage: Two Hotels, One Roof
Combining Fairfield Inn & Suites and TownePlace Suites under one roof allows TNB Hotels to serve multiple guest segments while maximizing operational efficiencies:
Fairfield Inn & Suites: Business travelers, families, and short-term stays.
TownePlace Suites: Extended-stay guests seeking apartment-style accommodations.
Operational Synergy: Shared amenities, reduced overhead, and dual-brand marketing power.
Why Invest with TNB Hotels?
With over a decade of experience in select-service hotel development, TNB Hotels specializes in branded assets that deliver solid returns through strategic market positioning and operational excellence. As a trusted Marriott and IHG partner, we are committed to building assets that perform — for our guests and our investors.
Interested in Learning More?
For detailed investment information, financial projections, and partnership opportunities, contact our Investor Relations team.