Originally Posted by
C17PSGR
Interesting article on these issues. Older properties have the term of their franchise contract expire and they decide to reflag to a lower level brand, to avoid renovating to meet brand standards. Lots of new Fairfields coming in but the older ones have to make tough decisions -- spend several million to maintain Marriott standards or spend $750k to maintain AmericInn standards. Bottom line, this is a good thing.
Sell, reflag or renovate? Owners have a number of ways to extract value from aging assets facing a loss of brand license ....
HNN - Options abound for owners with old hotels
Thank you for posting the link. That's an interesting article.
In the article, the owner of a first-generation Hampton Inn converts it to a "very successful Best Western" after being told two years in advance that "Hampton would not be renewing their license because of the property’s outdated physical characteristics."
Last week, I stayed at a small, old Fairfield Inn with narrow hallways, small bathrooms, and other physical characteristics that did not begin to measure up to today's new-build Fairfield Inns. Located in Dubuque, Iowa, it was the only Marriott-affiliated property in the city or anywhere in the greater area. The property was clean, well-maintained, and had been renovated in 2016, but there's only so much you can do with paint, furniture, and carpeting.
The night after I checked out from the old Fairfield Inn, I stayed in a relatively new Hampton Inn. It was so much nicer in every way.
Marriott needs to keep its Fairfield Inn brand competitive with Hampton inn. In a few years, I would expect the old Fairfield Inn to convert to a different brand.