Hotels can be defined based on their physical characteristics, their market segment, or price segment. In this short article, we will focus on Hotel Types in Latin America based on their physical installations or facilities and touch on the market and price characteristics of each.
LOGAN offers valuation and consulting services for hotel properties in Latin America, including Mexico, Colombia, Costa Rica, Peru, Dominican Republic, Puerto Rico and the Caribbean. We have a dedicated hotel valuation department that specializes in the asset class. LOGAN has worked on almost all hotel types and has specialized in the valuation of portfolios of hotels for institutional owners in the region.
Full-Service
Definition: Full-service hotels are characterized by their comprehensive range of amenities and services, offering guests a complete hospitality experience. These hotels typically have a wide variety of on-site facilities such as restaurants, bars, fitness centers, spas, and conference rooms. They provide extensive guest services, including room service, concierge assistance, and valet parking.
Size, Unique Characteristics: Full-service hotels can vary in size, ranging from mid-sized properties to large resorts. They often feature spacious lobbies, multiple dining options, and extensive meeting and event spaces. These hotels prioritize providing a high level of comfort, convenience, and luxury to their guests.
Demand Orientation: Full-service hotels cater to a broad range of guests, including business travelers, vacationers, and event attendees. They aim to accommodate guests seeking a comprehensive range of amenities and services under one roof.
Price Segment: Full-service hotels are positioned in the upper-mid to high-end price segment. They offer a premium experience with higher room rates compared to limited-service hotels.
Example Brands: Well-known full-service hotel brands include Marriott, Hilton, Hyatt, and InterContinental, Sheraton, Wyndham, Four Seasons, Ritz-Carlton.Top Markets LATAM and Caribbean: Major cities and popular tourist destinations in Latin America and the Caribbean, such as Mexico City, Cancun, Playa del Carmen, Punta Cana, and San Juan, have a significant presence of full-service hotels.
Limited Service
Definition: Limited-service hotels, also known as select-service hotels, offer essential amenities and services to meet the needs of cost-conscious travelers. These hotels focus on providing a comfortable stay at a more affordable price point by offering fewer on-site amenities compared to full-service hotels.
Size, Unique Characteristics: Limited-service hotels are typically smaller in size compared to full-service hotels. They offer essential amenities such as complimentary breakfast, Wi-Fi, and fitness centers, but may lack certain facilities like full-service restaurants or extensive meeting spaces.
Demand Orientation: Limited-service hotels target budget-conscious travelers who prioritize affordability and convenience. These hotels provide a comfortable stay with fewer frills and are often located near business districts, airports, or major highways for easy accessibility.
Price Segment: Limited-service hotels are positioned in the mid to lower-end price segment, offering competitive rates for their services.
Example Brands: Popular limited-service hotel brands include Holiday Inn Express, Hampton by Hilton, Courtyard by Marriott, and ibis, Hilton Garden Inn.
Top Markets LATAM and Caribbean: Limited-service hotels are prevalent in both major metropolitan areas and secondary markets across Latin America and the Caribbean, catering to a diverse range of business and leisure travelers.
Resort
Definition: Resort hotels are destination properties that offer a wide array of amenities and services in a vacation-like setting. These hotels are designed to provide guests with a complete leisure and entertainment experience, often located in scenic or desirable locations.
Size, Unique Characteristics: Resort hotels can vary in size from medium-sized properties to expansive complexes featuring multiple pools, beaches, golf courses, spas, and other recreational facilities. They emphasize creating a relaxing and immersive environment for guests.
Demand Orientation: Resort hotels primarily target vacationers and leisure travelers seeking a comprehensive range of activities and entertainment options during their stay. These hotels aim to provide a sense of escapism and a wide variety of on-site experiences.
Price Segment: Resort hotels typically operate in the mid to high-end price segment, offering a luxurious vacation experience with premium amenities.
Example Brands: Prominent resort hotel brands include Four Seasons, Ritz-Carlton, Club Med, and Secrets Resorts & Spas.
Top Markets LATAM and Caribbean: Latin America and the Caribbean boast numerous resort destinations, including Cancun, Riviera Maya, Punta Cana, Montego Bay, and Playa del Carmen, attracting both domestic and international tourists.
Convention
Definition: Convention hotels are specifically designed to cater to meetings, conferences, and events, providing extensive meeting spaces, exhibition halls, and support services. These hotels offer comprehensive event planning and hosting capabilities for various types of gatherings.
Size, Unique Characteristics: Convention hotels are typically large properties with spacious conference rooms, ballrooms, and exhibition areas. They have advanced audiovisual equipment, dedicated event staff, and a range of auxiliary facilities to accommodate different event sizes and requirements.
Demand Orientation: Convention hotels focus on attracting event organizers and attendees, including corporate groups, associations, and trade shows. They offer all-inclusive event packages and comprehensive support services to facilitate successful conferences and meetings.
Price Segment: Convention hotels can operate in a wide range of price segments, depending on their location, facilities, and target clientele.
Example Brands: Leading convention hotel brands include Marriott Hotels & Resorts, Sheraton, Hilton Hotels & Resorts, and Westin.
Top Markets LATAM and Caribbean: Major business centers and cities with convention facilities, such as Mexico City, Cancun, Santo Domingo, and San Juan, are key markets for convention hotels in Latin America and the Caribbean.
All-Suite
Definition: All-suite hotels provide guests with spacious accommodations that consist of separate living areas and bedrooms. These hotels prioritize offering larger, apartment-like suites, providing increased comfort and privacy for longer stays or for travelers who desire more space.
Size, Unique Characteristics: All-suite hotels can range from boutique properties to larger hotels. They offer suite-style rooms that feature separate living rooms, bedrooms, and often include kitchenettes or full kitchens, providing guests with a home-like experience.
Demand Orientation: All-suite hotels target guests who require extended stays, families, or individuals seeking additional space and amenities during their trip. They cater to business travelers looking for a comfortable work environment or leisure travelers who desire more room to relax.
Price Segment: All-suite hotels usually operate in the mid to higher-end price segment, offering premium amenities and larger room configurations.
Example Brands: Well-known all-suite hotel brands include Embassy Suites by Hilton, Homewood Suites by Hilton, Residence Inn by Marriott, and Staybridge Suites.
Top Markets LATAM and Caribbean: All-suite hotels can be found in various Latin American and Caribbean cities, including Mexico City, Cancun, Santo Domingo, San Juan, and Montego Bay, attracting both business and leisure travelers.
Extended-Stay
Definition: Extended-stay hotels are designed to accommodate guests who require lodging for an extended period, typically beyond a week. These hotels offer amenities and services suitable for long-term stays, such as fully equipped kitchens, laundry facilities, and spacious living areas.
Size, Unique Characteristics: Extended-stay hotels can range from smaller properties to larger complexes. They provide suites with functional living spaces, including separate bedrooms, living rooms, and full kitchens, allowing guests to maintain a sense of routine and convenience during extended stays.
Demand Orientation: Extended-stay hotels primarily target guests who need lodging for extended periods due to relocation, work assignments, or personal circumstances. They offer the comforts of a home and cater to the needs of travelers seeking a more residential-style experience.
Price Segment: Extended-stay hotels operate in the mid to higher-end price segment, with rates that are often more cost-effective than traditional hotels for long-term stays.
Example Brands: Popular extended-stay hotel brands include Residence Inn by Marriott, Homewood Suites by Hilton, Candlewood Suites, and Element by Westin.
Top Markets in Latin America: Extended-stay hotels are prevalent in major business centers and cities with a high demand for extended stays, such as Mexico City, Sao Paulo, Bogota, and Buenos Aires.
Boutique
Definition: Boutique hotels are characterized by their intimate, stylish, and unique design, offering guests a distinctive and personalized experience. These hotels prioritize creating an atmosphere that reflects their individuality, often incorporating local culture, art, and personalized services.
Size, Unique Characteristics: Boutique hotels can vary in size, ranging from small properties with only a few rooms to larger hotels with up to a hundred rooms. They focus on creating a sense of intimacy, often featuring stylish and creatively designed spaces, curated artwork, and personalized guest services.
Demand Orientation: Boutique hotels target travelers seeking a unique and memorable experience, valuing authenticity and attention to detail. These hotels cater to guests who appreciate a more personalized and culturally immersive stay.
Price Segment: Boutique hotels generally operate in the mid to higher-end price segment, offering a premium experience with a focus on exclusivity and individuality.
Example Brands: Boutique hotels are often independent and not affiliated with major hotel chains. Each boutique property has its own distinctive brand identity and design.
Top Markets in Latin America: Boutique hotels can be found in various vibrant and culturally rich cities across Latin America, such as Mexico City, Cartagena, Oaxaca, and Cartagena, appealing to travelers seeking authentic and unique experiences.
LOGAN Mexico and LOGAN Caribbean offer consulting and appraisal services for different hotel types and frequently work in the major traditional markets (Los Cabos, Cancun, Puerto Vallarta, Cancun, Punta Cana), as well as emerging markets.
References
Hotels & Motels: Valuation and Market Studies – Appraisal Institute
STR – Smith Travel Research
Hotel Learning Online – Steve Rushmore