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.

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