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Hotel guests see better value for the rates they pay, JD Power survey says

Annual benchmark of third-party operators shows overall improved customer satisfaction
Guest satisfaction at third-party-managed hotels affiliated with brands improved this year, thanks to better perceived value, guest responsiveness and hotel cleanliness. (Getty Images)
Guest satisfaction at third-party-managed hotels affiliated with brands improved this year, thanks to better perceived value, guest responsiveness and hotel cleanliness. (Getty Images)
CoStar News
September 5, 2024 | 2:22 P.M.

Hotel guest satisfaction scores improved year over year at hotels managed by third-party operators, driven by improved perceived value and faster, more responsive staff.

The J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction Benchmark reports overall guest satisfaction of branded hotels operated by third parties reached 683 out of 1,000, an improvement of eight points over last year. It cited cleanliness of guestrooms; maintenance and upkeep of the hotel; and hotel staff responsiveness, according to a news release.

Andrea Stokes, hospitality practice lead at J.D. Power, said in an interview that it was a pleasant surprise to see these results for the largest third-party hotel management companies on average. That’s even factoring in the higher rates hotels have charged in recent years.

“Guests have high expectations because of those high room rates, but the third-party-managed hotels seem to be delivering on those expectations,” she said.

The perceived value for price improved by six points on average compared to 2023, according to the benchmark.

When J.D. Power looked at the different hotel segments, there had been a general decline in perceived value for the money, but that wasn’t the case for the third-party-managed hotels affiliated with a brand, Stokes said. If a hotel is not keeping up with maintenance and general conditions of the property and rooms, guest satisfaction scores reflect that.

Staff service was another highlight, she said. As hiring started to come back for hotels, guests have recognized that and appreciated the better service they’re receiving compared to years ago. The results point to front-desk staff efficiency and overall responsiveness to questions or concerns. Guestroom cleanliness was also noted, which is a sign of the hard work by the housekeeping teams.

This year’s benchmark also ranked 18 of the largest third-party hotel management companies in overall guest satisfaction. Davidson Hospitality Group topped the list for the third year in a row with a score of 735 out of 1,000. HEI Hotels and Resorts ranked second with 705 points, and White Lodging came in third with 704.

The benchmark bases its findings on six factors: communications and connectivity; food and beverage; guestroom; hotel facilities; staff service; and value for price. It included third-party hotel management companies with more than 14,000 branded hotel rooms in their portfolios. It’s based on 4,907 guest responses to stays between May 2023 and May 2024.

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