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J.D. Power: Guest Satisfaction at Third-Party Managed Hotels Significantly Improves

  • LODGING Staff
  • 4 September 2024
  • 2 minute read
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This article was written by Lodging Magazine. Click here to read the original article

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TROY, Michigan—According to the J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction Benchmark, overall guest satisfaction with branded hotels run by the nation’s largest third-party management companies improved significantly this year, outperforming chain-managed and independently operated hotels.

“Third-party management companies operating branded hotels are really firing on all cylinders by consistently delivering well-maintained buildings, cleaner guestrooms, 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.”

The following are some of the findings of the 2024 benchmark:

  • Overall satisfaction rises significantly yearly: 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 the cleanliness of guestrooms; 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 the 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

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

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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.

Please click here to access the full original article.

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