Business Travelers Lower Their Sights Demand Shoots Up For ‘Limited Service’ Lodging

Demand is growing for less expensive business-class lodgings, prompting plans to build hundreds of new “limited service” hotels across the United States over the next few years.

Officials at Hilton Hotels say night rates at most of the 100 proposed new Hilton Garden hotels will usually be less than $80.

Doubletree, which took over the Boston-based Guest Quarters chain last year, has plans for a new chain called Candlewood where a studio unit would rent generally for $50 or less. ITT Sheraton is giving its Sheraton Inns a new name, Four Points, and promote them as midprice business hotels.

Blame it on the economy. “During the boom of the 1980s business travelers didn’t seem to much care whether they paid $20 or $30 a night more for a full-service hotel over a limited-service hotel,” said Rachel Roginsky of Pinnacle Advisory Group, a Boston hotel consultant. “Now it matters,” she said.

Courtyard by Marriott, Fairfield Inns (also by Host Marriott), Red Roof Inns, Best Western and Hampton Inns all have done well in this climate. Now, the rest of the industry wants in.