Hotel Brand Performance 2025 — When More Isn’t Always Better

Choosing the wrong flag is costing developers millions—here’s what the data shows.

 

More Brands, Smaller Returns

Over the past decade, hotel companies have introduced more brands than ever—an average of 7% new brand growth per year, according to CBRE and STR. Every major chain is expanding its portfolio to target narrower market segments. But despite this proliferation, real performance has struggled to keep up. Inflation-adjusted revenue per available room (RevPAR) declined by about 1–2% in 2024, meaning most hotels are earning less in real terms than the year before. In short: more brands, smaller returns.1

Top Performing Flags in Upper-Midscale

Among today’s upper-midscale options, these three continue to outperform across satisfaction and stability metrics.

Hampton by Hilton Hotel

Hampton by Hilton — Ranked #1 in guest satisfaction for the Upper-Midscale segment.2


Home2 Suites by Hilton

Home2 Suites by Hilton — Leads the Upper-Midscale / Extended-Stay category two years running.3


Residence Inn by Marriott

Residence Inn by Marriott — Delivers strong occupancy and RevPAR stability across extended-stay markets.4


While Hampton by HiltonHome2 Suites, and Residence Inn stand out for performance and guest satisfaction, we’re also seeing steady development activity in other upper-midscale brands. These four represent the most commonly designed flags at BASE4 today, driven by developer demand for proven returns and flexible prototypes.

BASE4’s Most Designed Flags

These upper-midscale brands represent a large share of our current projects nationwide.


Why BASE4 Matters for Developers

Developers trust BASE4 to help them choose the right flag, design smarter, and build faster. Here’s how we make that happen:

  • Speed: Our integrated architecture + engineering team moves from concept to permit in record time.

  • Experience: Hundreds of upper-midscale hotel projects designed nationwide.

  • Smarter Design: We analyze brand standards, zoning, and site layouts to guide your best flag choice.

  • Cost Efficiency: Proven strategies that cut redesigns and accelerate approvals — saving months and millions.

Recent BASE4 Upper-Midscale Projects


 

Source:

1.CBRE Hotel Horizons Q2 2024; STR 2023–2024 Performance Summary

2.J.D. Power 2025 NAGSI

3.J.D. Power 2024 & 2025 NAGSI

4.CBRE Hotel Horizons 2024; Spark GHC 2024

Thank you,

Blair Hildahl
Blair@hotelsuniversity.com
608.304.5228

Posted in Hotel Design & Planning.

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