A limited-service hotel (LSH) is a hotel without restaurant and banquet facilities, which are part of the defining characteristics of a full-service hotel (FSH). The LSH’s market position is based on the recognition that, for some travelers, the key requirement is a satisfactory room but few of the other amenities.
Lower investment outlay and operating cost, a feature shared by all LSHs, leads to a more stable investment product versus the FSH, and LSHs can deliver an on-par to slightly better risk-adjusted return than other commercial real estate classes.
This is one of the reasons for the rapid growth of the sector over the last two decades.
(For the full article, please refer to the below link:
http://www.ejinsight.com/20160520-limited-service-hotels-can-be-good-investment/) |
| The Super Hotel chain in Japan offers limited amenities (though a few of the hotels have an in-house hot-spring spa), but service is the equal of that in full-service hotels. Photo: superhotel.co.jp |
