NEW YORK, NEW YORK – To commemorate Independent Hotel Day, a day which celebrates the individuality and authenticity of independent hotels worldwide, Preferred Hotels & Resorts – the world’s largest independent hotel brand – is pleased to unveil the results of the U.S. Performance Report, conducted by HVS, a global leader in hospitality consulting and services, which evaluated the performance of 92 Preferred-affiliated hotels in North America for the period from 2021 and 2023.
We are seeing an increasing number of owners opting for the independent model, and the HVS report demonstrates that Preferred Hotels & Resorts is the highest performing relationship in the industry,
said Michelle Woodley, President for Preferred Hotels & Resorts. As reported in the findings, we leverage our brand’s prestige and global operating scale to exemplify the strategic advantage our hotels have maintained through ongoing RevPAR growth, and continue to deliver market leading results against our competitors in the group and corporate segments. This momentum is a testament to our brand’s resilience and ability to adapt to changing market conditions, showcasing the strength and strategic advantage of affiliating with Preferred Hotels & Resorts.
For the analysis, the hotels were categorized into three distinct groups: primary markets, secondary and tertiary markets, and resort markets. Utilizing data provided by STR, which assembled Occupancy, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR) data to analyze the performance of Preferred Hotels & Resorts member properties – the HVS study found the Preferred properties outperformed their competitive sets across all three categories over the three-year period studied (2021-2023) when analyzing RevPAR penetration. This was both in total and for each year individually.
Fueling momentum behind Independent Hotel Day, the HVS report highlights the extent to which independent hotels thrive in the areas of RevPAR growth and ADR, while benefiting from significant cost savings, when affiliating with Preferred Hotels & Resorts, a result of the brand’s industry-leading performance.
Key Findings:
- The report cited resort hotels to be the strongest relative performers, with Preferred-affiliated hotels ranging from 131% to 141% RevPAR Index versus their competitive sets. Both occupancy and ADR drove the overperformance – with transient share benefiting from ADR and occupancy overachievement, while group performance was driven more by ADR premiums.
- Primary market hotels affiliated with Preferred Hotels & Resorts also overachieved, reporting a RevPAR Index ranging from 111% to 115% driven consistently by ADR premiums. In this category, transient occupancy also performed especially well, as hotels captured more than their fair share of rebounding and high-rated corporate travel.
- Additionally, Preferred-affiliated hotels in secondary and tertiary markets indicated outsized RevPAR indexes, ranging from 103% to 111%. Similar to other categories, these hotels were able to command premium ADRs and a very strong delivery in the group segment.
- The findings also showed that Preferred Hotels & Resorts’ cost to hotels equate to less than 1.5% of gross rooms revenue, on average, as compared to the roughly 11% of gross rooms revenue charged by other luxury and upper-scale brands.
The goal of the study was to measure the performance of hotels affiliated with Preferred Hotels & Resorts against the identified competitive set, leveraging the brand’s prestige and global operating scale to exemplify the strategic advantage it brings to hotel owners, operators, and management companies by providing strategic group, corporate, and leisure sales, integrated marketing solutions including a global loyalty program, comprehensive revenue management, global connectivity through reservations services, progressive distribution technology, and individualized guest support.
For more information on Preferred Hotels & Resorts, and for hotel owners and operators exploring options to stay or become independent, visit www.PreferredHotels.com/join. To see the full report, visit here.
About Preferred Hotels & Resorts
Preferred Hotels & Resorts is the world’s largest independent hotel brand, representing more than 600 distinctive hotels, resorts, residences, and unique hotel groups across 80 countries. Through its curated global collections, Preferred Hotels & Resorts connects discerning travelers to the singular luxury hospitality experience that meets their life and style preferences for each occasion. Every property within the portfolio maintains the high-quality standards and unparalleled service levels required by the Preferred Hotels & Resorts Integrated Quality Assurance Program. The I Prefer™ Hotel Rewards program, Preferred Residences℠, Preferred Pride℠, and Preferred Golf™ offer valuable benefits for travelers seeking a unique experience. For more information, visit PreferredHotels.com.
AboutI PreferHotel Rewards
Launched in August 2013, the I Prefer Hotel Rewards program from Preferred Travel Group – the parent company that operates hotel brands Preferred Hotels & Resorts, Beyond Green, Historic Hotels of America, and Historic Hotels Worldwide – extends points, status, and other complimentary benefits to members upon eligible stays at over 600 participating hotels and resorts worldwide. In addition to earning points for eligible room nights, members receive additional benefits based on their tier status. The I Prefer program also offers a free mobile app, available on Apple and Android devices, which allows members to search and book hotel stays, and easily redeem Reward Certificates. With 5 million travelers currently enrolled in membership, I Prefer is complimentary to join. To learn more and to enroll in the program, please visit IPrefer.com/enroll.
