Page 11 - August 2022

different hotel products, sizes, and branding. It is important (ADR) premium that can be achieved by small, experiential
to choose the right hotel for each unique project. There is luxury hotels well above the rates achieved in the local
certainly opportunity for these smaller hotels to drive a rate market. This rate premium has been something Mr.
independent of and well above their market competitors. Marchbanks has experienced at the unique properties that
he has ownership in. While I am not aware of publications
exploring this occurrence, I noted that I have seen this
SUMMARY happen in numerous markets where we have completed
market studies. Mr. Marchbanks has graciously offered to
The development of hotels with unique and defined compensate McCaslin Hotel Consulting, LLC for our time to
hospitality experiences can allow these hotels to achieve complete this article exploring in detail the factors that create
exceptional performance since they have less rooms to fill a rate premium for small hotels. While he has provided me
and are less dependent on discounted group bookings. As with some data, at my request, to complete this analysis, all
such, small, experiential hotels have an opportunity to opinions expressed in this article are that of McCaslin Hotel
drive pricing well above the local market. There is no one Consulting, LLC and are independent and unbiased.
solution though, as each property and target market needs
to be approached differently. McCaslin Hotel Consulting, LLC has years of expertise in
It is important to conduct market analysis before the hospitality industry specializing in conducting market
deciding what type of hotel project is best suited to each feasibility studies for both major branded hotels and small,
development.N experiential independent hotels, assisting with determining
hotel branding and sizing, conducting rebranding/
In the interest of full-disclosure, I was recently asked by repositioning studies for hotels and providing hotel asset
one of our clients, Mr. Greg Marchbanks, if there were any management services to maximize hotels profits. For further
publications by experts exploring the Average Daily Rate information, please email patrick@mchotelconsulting.com.

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