Dive Brief:
- Hotel management companies Davidson Hospitality Group and Dimension Hospitality tied to rank highest in overall guest satisfaction in J.D. Power’s 2023 North America Third-Party Hotel Management Guest Satisfaction Benchmark study.
- The study measured the performance of third-party hotel operators with more than 14,000 branded hotel rooms under management based on six categories: communications and connectivity, food and beverage, guest rooms, hotel facilities, staff service and value for price.
- Despite persisting challenges in hospitality operations, including labor shortages and tightening budgets, the top-ranked management companies secured strong guest satisfaction scores. There are some areas of operation, though, that all operators can improve on, guest responses showed.
Dive Insight:
Runner-up for the top spot on J.D. Power’s latest guest satisfaction benchmark is HEI Hotels and Resorts, followed by Concord Hospitality and White Lodging.
Driftwood Hospitality Management, Hersha Hospitality Management and Aimbridge Hospitality all ranked above the benchmark average, as well.
According to J.D. Power, these hotel management companies’ investments in renovations, maintenance and staffing have landed them positive reviews by guests — though there is room for improvement, guest responses show. The study found hotel guests want modern and unique design in hotel lobbies and common areas, but only 13% of branded hotels evaluated currently meet these criteria.
The study also found that guests are increasingly demanding EV charging, and accessibility to this amenity is starting to influence their hotel selection and satisfaction. Some 19% of hotel guests surveyed said they need to have an EV charging station at their hotel.
Industry-wide, hotel management companies are addressing guests’ desires.
Driftwood Hospitality Management, specifically, is in the process of renovating all of the guest rooms and meeting space at the 299-room Hilton Dallas/Plano Granite Park hotel following its parent company Driftwood Capital’s acquisition of the property in June.
Several other front-runners in the J.D. Power rankings also expanded their portfolios this year. In February, Davidson Hospitality Group was selected by Flag Luxury Group to manage Wyndham Orlando Resort International Drive in Florida. At the time, Flag Luxury Group CFO Adam Raboy said Davidson was selected for “nurturing relationships, staying present with today’s guests and delivering memorable experiences.”
Aimbridge also extended its management capabilities to more guests through its March acquisition of Terrapin Hospitality’s 71-property management portfolio. And in July, HEI Hotels and Resorts assumed management of three Even-brand hotels in New York, Maryland and Connecticut.
As for EV charging stations, guest demand is prevalent industry-wide. Yesterday, Hilton announced a partnership with Tesla to install 20,000 charging stations at hotels across North America. The partnership, Hilton said, was bolstered by the EV charging search filter on its website becoming the second highest converting filter.
