How to Price Buy-Outs of Smaller Hotels in Leisure Markets

Larry Spelts | May 24, 2024

By Larry Spelts Small properties (one hundred rooms or less), especially upper-upscale and luxury boutique hotels in destination markets that are principally leisure with higher ADRs, are often attractive buy-out destinations for certain kinds of groups. This can range from weddings and reunions to corporate and association retreats or incentive travel. The Challenge of Hotel Buyouts for Weekends: Case Study It is essential to good revenue management that opportunity costs be factored into weekend buyouts because hotels that are in principally leisure segment-dominated locations tend to sell out on many weekends perennially, and beca...