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May 5, 2022
  • Investment & Partnership
  • Owner & Investor Experience

How Mid-Scale Hotels Are Shaking up the Industry

When you think of a smaller hotel, what comes to mind? A motel with a dated outdoor pool? A trendy boutique? A cut-and-dry room with a bed and tv. A lobby with a self-serve cereal breakfast?

Mid-scale hotels (generally under 140 rooms) are often referred to as limited-service hotels. But, nowadays, service-focused hotel chains are finding innovative ways to offer affordable, high-quality accommodation that rivals upper-midscale and even some full-service properties.

Travellers have changed – so have their expectations

As the world diversifies and travel motivations change, today’s hotel patrons have different expectations. Price remains king – but consumers also want to get the most value out of their dollar without compromising on what they expect of a hotel.

In competitive markets, hotels need to go beyond just a bed and a room. They need to provide an experience, a centre for activity and enjoyment that a visitor will delight in returning to again and again. Mid-scale hotels are filling that need by delivering the services a new era of travelers is seeking out.


People want more from their accommodation and individual needs extend well beyond basic offerings. Hotels need fast, quality WIFI, they need social spaces for guests to mingle. Some are now offering gyms, indoor pools, and even waterslides. Some other things that consumers want in the new age mid-scale hotel are:

  • Smart TVs
  • Breakfast services
  • Extended stay options

While some midscale hotels introduce unique architecture to stand out, others have followed modular design plans which allow them to maximize cost efficiencies and include more amenities for a lower upfront cost. By leveraging every corner of space, these hotels can provide food and beverage, lobby bars, and other gathering spaces that previously were impossible without a larger footprint.

Attention to detail

With fewer rooms, mid-sized hotels can provide efficient builds with heightened attention to detail. Today’s mid-sized hotels can provide things like high-quality finishes, furnishings, and helpful luxuries around the hotel room that make the overall aesthetic and feeling of accommodation much more personal.

By removing the stale, cookie-cutter feeling often associated with limited-service hotels, today’s mid-scale brands can offer a home away from home, a place that has been cared for and makes guests feel comfortable.

Making travel accessible

Coming out of Covid-19, hotels that can offer greater value at a lower cost will be well-positioned to thrive. As airline ticket prices soar and resort packages climb (on top of everyday inflation) many Canadians will find exotic destinations are no longer within their budget. Even business travelers will be under pressure to be more frugal with expenditures.

Midscale hotels that can maximize offerings while maintaining affordable room rates will be able to provide domestic travelers with memorable experiences, without going too far from home.

Find the right fit for your needs

When it comes to hotels, bigger is not always better and mid-sized accommodations are proving that by delivering on consumer needs. Those that can fit both the expectations and budget of middle-income travelers will be rewarded with full rooms and positive reviews.

Considering a hotel for your development property

Business people in discussion sitting around a conference tablebeautiful accessible bathroom