Feds’ infrastructure spending may buoy midscale hotel segment

Skift notes Choice Hotels desire to climb the property ladder, citing a development pipeline that anticipates “30% higher revenue-per-available room potential than current properties,” even as Marriott slashes headquarters staff to achieve $90 million in annual savings and promises to cut property owner-partner costs, while increasing midscale flags.

One interesting note in the Choice story is the influence of Biden administration economic-development spending from the American Rescue Plan (nearly $2 trillion), Infrastructure Investment and Jobs Act ($1.2 trillion), and Inflation Reduction Act ( $740 million) on midscale hotel revenue; just as such hotel spend fell off to a lesser extent during the COVID-19 pandemic (as some workers could not telecommute), it shouldn’t be underestimated going forward.