Hotel Management Companies Drive Significantly Better Guest Experiences, J.D. Power Finds

Davidson Hospitality Group Ranks Highest in Guest Satisfaction for Third Consecutive Year

The secret to a great branded hotel stay may be in an aspect that guests do not often realize: the third-party management company operating the hotel, which creates consistent, pleasurable and problem-free guest experiences. According to the J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction Benchmark^SM, released today, overall guest satisfaction with branded hotels run by the nation’s largest third-party management companies improves significantly this year, outperforming both chain-managed and independently operated hotels.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240904597390/en/

J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction BenchmarkSM (Graphic: Business Wire)

“Third-party management companies operating branded hotels are really firing on all cylinders by consistently delivering well-maintained buildings, cleaner guest rooms and an overall better guest experience than those seen among independently operated branded properties and even chain-managed properties,” said Andrea Stokes, hospitality practice lead at J.D. Power. “What is most noteworthy is that the largest third-party hotel operators are delivering an improved level of staff service even as higher room rates are pushing guest expectations higher.”

Following are some of the key findings of the 2024 benchmark:

• Overall satisfaction rises significantly year over year: Overall guest satisfaction with hotels run by third-party management companies is 683 (on a 1,000-point scale), up 8 points from a year ago. The year-over-year improvement is driven primarily by improvements in satisfaction with cleanliness of guest rooms; maintenance and upkeep of the hotel; and hotel staff responsiveness to guest questions and requests.
• Improved guest experience offsets higher prices: Although guests at branded hotels say they are paying more for their rooms this year, overall improvement in perceived value for price for the largest third-party managed hotels has risen 6 points, on average, from 2023. This indicates that guests perceive these hotels provide good value for quality and service received.
• Faster front desk service and improved staff responsiveness: Across all operational areas in the benchmark, staff service achieves the highest guest scores. Satisfaction with staff service has increased year over year, driven by significantly higher scores for front desk staff efficiency and responsiveness to guest questions or concerns.

Benchmark Ranking

Davidson Hospitality Group ranks highest in overall guest satisfaction for a third consecutive year, with a score of 735. HEI Hotels and Resorts (705) ranks second and White Lodging (704) ranks third.

The North America Third-Party Hotel Management Guest Satisfaction Benchmark, now in its fifth year, evaluates guest satisfaction with branded hotels that are operated by the largest third-party management companies. It is based on six factors (in alphabetical order): communications and connectivity; food and beverage; guest room; hotel facilities; staff service; and value for price. The benchmark includes third-party hotel operators with more than 14,000 branded hotel rooms under management and is based on 4,907 guest responses for branded hotel stays from May 2023 through May 2024.

For more information about the North America Third-Party Hotel Management Guest Satisfaction Benchmark, visit https://www.jdpower.com/business/third-party-hotel-management-guest-satisfaction-benchmark.

See the online press release at http://www.jdpower.com/pr-id/2024094.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto-shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

View source version on businesswire.com: https://www.businesswire.com/news/home/20240904597390/en/