SpringHill Suites by Marriott: Brand Overview and Market Analysis

“SpringHill Suites hotel in Kanab, Utah, set against red rock cliffs at sunset.”

Brand Overview

SpringHill Suites by Marriott is an upscale, select-service hotel brand positioned in the all-suites category under Marriott International. The concept centers on providing modern, spacious suites that are larger than standard hotel rooms, featuring separate living/work areas, often with a sofa (some even include trundle beds for extra sleeping space) and contemporary West Elm-inspired décor. Every SpringHill Suites offers complimentary hot breakfast for all guests, reflecting the brand’s focus on added value and convenience. As a select-service brand, properties typically provide amenities like free Wi-Fi, fitness centers, pools, and small meeting spaces, but without full-service restaurants (beyond breakfast and market snacks). This streamlined model caters to travelers seeking a comfortable stay with essential perks rather than luxury frills.

SpringHill Suites launched in the late 1990s and has grown into Marriott’s largest all-suites upscale brand, with roughly 500 locations across the U.S. and Canada today. A typical SpringHill Suites property is a mid-rise hotel with around 100–150 suites. For example, the newly opened SpringHill Suites in Kanab, Utah, features 127 suites in a four-story building (approximately 68,700 square feet), illustrating the brand’s prototypical size. All rooms are studio-style suites, and the hotels usually include a small boardroom or meeting space (often ~300–500 sq ft) for business use. SpringHill Suites is part of the Marriott Bonvoy family, allowing guests to earn and redeem points, and benefitting from Marriott’s global distribution and loyalty program. Marriott International – the brand’s parent company – is the world’s largest hotel operator and SpringHill Suites contributes to Marriott’s broad portfolio of 30+ brands. Notably, SpringHill Suites has earned high guest satisfaction scores in the upscale category (including a past J.D. Power award tie for #1 in guest satisfaction in its segment), highlighting the brand’s success in delivering a consistent, quality experience within its niche.

Market Positioning

Within the U.S. hotel market, SpringHill Suites holds a solid position as an upscale select-service chain, though its overall share of the entire hotel universe is relatively modest. With ~500 properties (totaling on the order of 50,000–60,000 guestrooms systemwide), SpringHill Suites accounts for roughly 1% of all U.S. hotel rooms, a meaningful footprint for a single brand given the fragmented nature of the industry. (By comparison, the U.S. has about 5.8 million hotel rooms in total across all chains and independents.) SpringHill’s footprint makes it one of the larger brands in its tier, even if it is smaller than some powerhouse upper-midscale competitors. For instance, it is Marriott’s largest all-suites upscale brand, but it has fewer hotels than Marriott’s Courtyard brand or Hilton’s Hampton Inn, which are in similar price segments. Nonetheless, SpringHill Suites’ growth to 500 hotels is a significant achievement – in 2023 it celebrated the opening of its 500th property – and it continues to expand in both urban and secondary markets.

In terms of market share by revenue, SpringHill Suites contributes to Marriott International’s leading position in the U.S. lodging sector. Marriott (the parent company) holds roughly 7% of U.S. hotel industry revenue, the highest share of any single company. SpringHill Suites is one of Marriott’s key select-service offerings, complementing sister brands like Courtyard, Fairfield, and Residence Inn. Within the upscale/upper-midscale segments, SpringHill competes with other select-service all-suites brands such as Hilton’s Homewood Suites and Embassy Suites, Hyatt Place, and IHG’s Staybridge Suites, as well as non-suites focused brands like Hilton Garden Inn or Holiday Inn Express that target a similar customer profile. Compared to these peers, SpringHill’s footprint of ~500 hotels is substantial – for example, it outnumbers many upscale suite competitors and is on par with some older brands in distribution. However, giants in the broader upper-midscale category (like Hampton or Holiday Inn Express, each with well over 1,000 properties) still exceed SpringHill’s scale. This means SpringHill Suites finds itself in a mid-sized but influential position: it is large enough to be a familiar name across the country, yet its share of the total market remains under 2% by room count. The brand’s strategy focuses on growing in markets where an all-suite, moderately priced hotel can capture demand from both business and leisure segments – a strategy that has helped it steadily increase its share within the upscale tier. Marriott’s extensive development network and loyalty program also bolster SpringHill’s market positioning, attracting franchise investors and guests alike (Marriott Bonvoy’s membership base of 200 million+ travelers drives significant direct bookings to its brands).

Typical Customers and Booking Behavior

SpringHill Suites targets a broad customer base of both business and leisure travelers who seek a balance of comfort, space, and value. Key customer segments include:

• Business Travelers:  Many SpringHill Suites guests are traveling professionals – consultants, sales representatives, project teams – who appreciate the functional design of the suites. The separate work area with a desk, ample lighting, and reliable high-speed Wi-Fi caters to guests who may need to work from their room, and the free breakfast and on-site fitness center provide convenience for those on tight schedules. SpringHill properties often cluster in office parks, near corporate centers, or airports, making them a practical choice for work travel. The brand’s presence in smaller markets (like tertiary cities or near military bases) also captures regional business travel that larger full-service brands might not serve. Booking data shows that many business travelers favor booking directly through Marriott’s channels (website or app) to earn loyalty points – an attractive feature given Marriott Bonvoy’s large membership and perks. These guests tend to book weekday stays, and SpringHill’s offerings (e.g., business centers, a small meeting room on-site) are designed to accommodate small meetings or remote work needs during their stay.

• Leisure Travelers and Families:  SpringHill Suites is equally attuned to families and leisure travelers on weekends or vacation trips. Every room is a suite, typically equipped with a sofa-bed (and in newer designs, sometimes a trundle bed) along with mini-fridge and microwave, which allows a family of four or five to share the space comfortably. This makes the brand popular for families on road trips, sports tournaments, or visiting attractions, who need extra sleeping capacity and appreciate not having to book a second room. Free hot breakfast is a major draw for families and budget-conscious travelers, adding value by saving time and money each morning. Many SpringHill Suites locations are in or near tourist destinations – from beach towns to national parks – where they serve as a base for vacationers. For example, SpringHill Suites has hotels near theme parks and within scenic areas (one notable property is at the doorstep of Zion National Park, Utah), which attract leisure visitors looking for a reliable, mid-priced hotel with upscale touches. Leisure guests often plan trips over weekends or holidays and may book through a variety of channels – direct, OTAs, or travel packages – but Marriott’s strong brand recognition and loyalty program help capture a good portion of these bookings directly. Notably, SpringHill’s family-friendly amenities have earned the brand accolades (it has appeared in Parents magazine’s rankings of top family-friendly hotels in America), reflecting its appeal to travelers with children.

• Millennial and Gen Z “Bleisure” Travelers:  A growing segment SpringHill Suites caters to is the “bleisure” traveler – typically younger professionals (Millennials and Gen Z) who blend business and leisure on the same trip. These guests might travel for work but extend their stay for personal time, or work remotely while traveling for fun. SpringHill’s formula resonates with this group by offering a casual, modern vibe and social spaces (many properties have spacious lobbies or outdoor patios with fire pits where guests can relax or co-work). The industry trend toward bleisure is strong – younger travelers prioritize experiences and flexibility, often tacking on weekends to business trips. Hotels have responded by ensuring 24/7 high-speed internet, flexible check-in/out, and communal lobby areas to facilitate both work and socializing. SpringHill Suites, with its suites that have comfortable living areas and a “home-away-from-home” feel, is well positioned for these travelers. They can log on from the in-room work desk or lobby, then easily transition to leisure mode exploring the locale. The brand’s stylish design and touches like local artwork also appeal to the aesthetics-minded Millennial demographic. In terms of booking behavior, these younger travelers are very mobile-centric and spontaneous – Marriott’s mobile app and digital key technology cater to that, enabling seamless online booking and check-in. Additionally, SpringHill Suites benefits from Marriott’s marketing to emerging traveler segments that emphasize experience over luxury; its hotels often highlight local attractions and Instagram-worthy aspects (for instance, scenic backdrops or unique lobby art) to attract Gen Z guests looking for shareable moments.

Across all these segments, SpringHill Suites leverages Marriott’s distribution strength: loyalty members account for a large share of bookings, preferring to stay within the Marriott ecosystem to earn points. The brand thus enjoys a mix of corporate travel bookings (often through negotiated rates or company travel portals) and retail leisure bookings on weekends. Traveler behavior data indicates SpringHill guests value consistency, cleanliness, and efficiency – they choose the brand knowing the experience will be reliably comfortable and geared toward productivity as well as relaxation. In summary, the typical SpringHill Suites customer is someone seeking “best-of-both-worlds” accommodations: upscale comfort and design, at a moderate price point, with enough included amenities (breakfast, Wi-Fi, fitness, pool) to simplify their trip.

Industry Context and Trends

SpringHill Suites operates within the broader U.S. hotel industry, which as of 2025 is experiencing a post-pandemic deceleration in performance growth. To set the context, U.S. hotels in the past year achieved an average occupancy of around 62–63% and an Average Daily Rate (ADR) of roughly $160, which yields a Revenue per Available Room (RevPAR) near $100. These figures are only marginally better than the prior year – in fact, through mid-2025 RevPAR was up just +0.4% year-on-year, the slowest growth the industry has seen since 2010 (excluding the 2020 pandemic collapse). This muted growth comes from a combination of slightly higher room rates (+1.1% YoY) but softening occupancy (-0.7% YoY). Industry forecasters have even revised the 2025 outlook downward, with US RevPAR now expected to decline slightly (around -0.1%) for the full year. The pullback is largely due to a normalization after the strong recovery of 2021–2022, coupled with emerging headwinds in 2024–2025.

One notable challenge is the weakness in weekday/business travel and international inbound travel. Hotels have seen five consecutive months of declining weekday occupancy – a sign that corporate travel hasn’t fully regained momentum. Many companies have cut back on travel or are booking more last-minute (short lead times), which affects how hotels manage rates. Additionally, international tourism to the U.S. is down, partly due to visa policy changes and border frictions; for instance, 2025 is seeing an expected 9% drop in international arrivals, with Canadian visitors projected to decline ~30%. This particularly impacts major gateway cities and certain leisure destinations like Las Vegas and Orlando that rely on overseas tourists. The upshot is that some demand segments that buoyed the industry in early recovery (like pent-up leisure and “revenge travel”) are leveling off, and new demand hasn’t fully filled the gap. Group travel (meetings and conferences) also showed mixed results – after a rebound early in the year, group room nights fell ~3% in Q2 2025 as companies remained cautious. On the other hand, leisure travel is holding up better, but even there we see shifts: affluent travelers are gravitating to alternate options like luxury vacation rentals or cruises (Q2 2025 saw strong performance by luxury cruise lines, which may divert some high-end travelers from hotels). Also, short-term rental platforms (e.g. Airbnb) continue to capture a portion of lodging demand growth; Airbnb reported robust Q2 2025 results with increasing guest numbers, indicating that many travelers (especially families or longer-stay leisure guests) are opting for alternatives to traditional hotels.

Another lens on industry performance is by chain scale segment: there’s a widening divergence between the luxury/upscale end and the lower-priced end. In mid-2025, Luxury hotels’ RevPAR was up about +3% year-over-year (as higher-spending travelers kept luxury demand strong), whereas Economy hotels’ RevPAR was down roughly -1.9%. In fact, by July 2025 the economy segment saw a sharper fall (RevPAR -5.2% that month) as some of the temporary demand that had propped up budget hotels (e.g. housing for disaster recovery or highway travelers during pandemic-related shifts) dissipated. Upscale and midscale segments were more in the middle – essentially flat to slight growth in RevPAR. For a brand like SpringHill Suites (upscale select-service), this means it’s operating in a segment that is performing around the industry average, neither as buoyant as high-end resorts nor as challenged as budget motels. A clear indication of the pricing environment: hotel room rates have started to face downward pressure in 2024–25. In early 2025, average advertised hotel prices across the U.S. actually fell below prior-year levels for several months. For example, March 2025 saw advertised rates about 2.5% lower than March 2024, and April was down over 3% YoY – notably driven by the “3-star” (midscale) segment cutting prices to attract price-sensitive travelers. This suggests hotels have less pricing power now that the post-COVID travel surge has faded and travelers have more options. Brands in the upper-midscale/upscale tiers (like SpringHill) may need to offer promotions or keep rates competitive to maintain occupancy, especially on weekends or off-peak periods.

On the supply side, the industry is experiencing historically low levels of new construction – a factor that actually bodes well for existing hotels’ performance in the long run (lower supply growth limits competitive pressure). As of mid-2025, the total hotel rooms under construction in the U.S. fell to around 136,000 rooms, the lowest in five years. To put that in perspective, that active pipeline is only about 2.3% of the existing room supply – quite a subdued growth rate. In fact, annual new supply growth is running at ~0.9%, which is still below the long-term U.S. average of ~1.5–2% per year. The slowdown is directly tied to the high interest rate environment and rising development costs. Financing for new hotel projects has become expensive: construction loans are reportedly being offered at rates of SOFR + 650–750 basis points (with typical 65% loan-to-cost), which many developers consider prohibitive. Consequently, developers are deferring or canceling projects, waiting for interest rates to come down. Many new hotels that would have broken ground in 2024/25 are now shelved in planning stages – indeed, the volume of rooms in planning (not yet under construction) is rising as projects queue up for better conditions. This financing crunch is compounded by sharp cost inflation for construction materials and labor. Hotel developers have been hit by soaring prices for key materials – for example, tariffs and supply chain issues have dramatically increased costs for furniture, carpeting, lumber, and other FF&E. Chinese-made furniture parts face tariffs exceeding 100%, effectively doubling the cost of some hotel furnishings. These input cost spikes are forcing many hotel owners to delay renovations and new builds. Even major brands like Marriott, Hilton, Hyatt – which typically rely on continuous new openings (new-builds account for ~70% of their annual growth) – are seeing their expansion plans throttled back by the construction slowdown. Projects already underway are generally being completed, but some planned openings have been pushed out or scaled down because of the economic hurdles.

Labor is another significant issue in the industry context. Hospitality employment has not fully recovered to pre-pandemic levels, and many hotels face persistent staffing shortages. A late-2024 survey found about 65% of U.S. hotels were still short-staffed in some departments. To attract workers, 47% of hotels have increased wages or offered incentives, yet employees often feel those raises haven’t kept up with inflation. The labor crunch has even led to labor actions – over 10,000 hotel workers across major brands (Marriott, Hilton, Hyatt, etc.) went on strike around Labor Day 2024, pushing for higher pay and better conditions. This unrest underscores how labor costs and availability are constraining operations. From an owner’s perspective, rising labor costs are squeezing profit margins: industry data (CoStar/STR) indicates that in 2024, despite rebounding revenues, higher wages and operating costs drove hotel profit margins down – net income is expected to be only ~11.9% of revenue in 2025 on average. That is a relatively thin margin for hotels (which historically, pre-pandemic, might have had mid-teens profit margins in good years). Hotels have responded by adopting efficiency measures – greater use of tech like mobile check-in, housekeeping on request, even exploring automation and robotics for routine tasks to offset labor needs. In select-service hotels such as SpringHill Suites, the impact of labor shortages is evident in service adjustments (e.g. limited housekeeping frequency, more grab-and-go F&B) aimed at coping with limited staff while controlling payroll expenses.

In summary, the industry backdrop for SpringHill Suites in 2025 is one of slowing growth and operational headwinds, but also some positives like constrained new supply. Demand has become choppier – with corporate and international travel lagging, and leisure normalizing – requiring hotels to be agile in marketing and revenue management. Costs (both construction and labor) are elevated, pressuring owners but also deterring new competition from entering the field quickly. For a brand like SpringHill Suites, these trends mean focusing on its strengths (delivering solid value to cost-conscious travelers) and leveraging Marriott’s support to navigate challenges (for example, tapping the vast Bonvoy loyalty base to drive occupancy, or using Marriott’s scale to mitigate procurement costs). The brand’s select-service model (with fewer labor-intensive services than a full-service hotel) actually provides some resilience in a high-labor-cost environment, and the current slowdown in new development could benefit existing SpringHill Suites hotels by reducing the risk of oversupply in many markets.

Case Study – SpringHill Suites Kanab (Utah)

To illustrate the brand’s characteristics and performance in context, let’s examine SpringHill Suites Kanab, a recently opened property in a small Utah market. The SpringHill Suites Kanab is a 127-room, four-story hotel located in Kanab, Utah (address: 635 E 300 S, Kanab, UT) – a town often called the “gateway to Utah’s national parks.” This hotel opened in October 2024, making it a brand-new addition to the SpringHill portfolio. It operates as a franchised property under Marriott, and is classified as an “Upscale” limited-service hotel by industry metrics. The hotel sits on a 4-acre site in Kanab’s small metro area and has a gross building area of about 68,746 square feet. With all 127 rooms being suites, it follows the SpringHill brand standard of offering only studio suites. The layout is interior-corridor and the building features modern mid-rise construction (4 stories), with design elements that blend into the scenic red-rock surroundings of southern Utah.

In terms of amenities and facilities, SpringHill Suites Kanab provides the typical offerings of the brand, adapted to its market. Key features include: a free hot breakfast buffet area (standard for all SpringHill Suites), a 24-hour market pantry for snacks, a business center with computers/printer, and a fitness center. For relaxation and recreation, the hotel has an outdoor pool and whirlpool (particularly attractive in the desert climate) and a patio with a fire pit – something that appeals to the evening stargazers and social travelers. There is a small meeting room (~375 sq ft) on-site, which can host intimate meetings or events (e.g. for 10–20 people) – likely catering to small corporate retreats or family gatherings given the location. Notably, this property even lists limited room service availability, which is a bit uncommon for the select-service tier; it suggests the hotel might partner with a local restaurant or provide a minimal menu for in-room dining (perhaps recognizing that dining options in Kanab are limited at night). Other amenities include free high-speed Wi-Fi throughout, guest laundry facilities, EV charging stations (as implied by modern features many new hotels include), and of course the Marriott Bonvoy benefits for members. The design aesthetic of the hotel is contemporary SpringHill style – likely featuring nature-inspired artwork (apt for Kanab), with the brand’s signature colorful lobby and spacious seating areas.

Ownership and management of SpringHill Suites Kanab are handled by a private hotel investment firm. According to records, the hotel’s owner of record is Maa S8 Blanding LLC, and the true owner/operator is A&B Hotel Management Investment, a California-based hotel management and investment company. This firm presumably developed the hotel and now runs it as the franchisee. The parent brand is Marriott International, meaning Marriott provides branding, marketing, and reservations support, but the day-to-day operations are handled by the franchise owner. Kanab is a small market, so having a recognizable Marriott flag like SpringHill Suites likely helps the property capture travelers who might otherwise overlook a rural town. The development timeline is worth noting: this hotel was proposed in late 2017 and underwent planning by early 2018, but only broke ground in August 2021, finally opening in October 2024. The long lead time (about 7 years from conception to opening) reflects the challenges that can occur – financing, design approvals, and the pandemic likely delayed the project significantly. It underscores the earlier point about how new supply pipelines are slow, especially in 2020–2022 when many projects paused. By the time it opened, SpringHill Suites Kanab was one of the newest hotels in the “Zion National Park” submarket (as CoStar defines the area) and in the broader southern Utah region.

The local market conditions around the opening of SpringHill Suites Kanab present a mixed picture. Kanab is a leisure-heavy market, serving tourists visiting nearby national parks (Zion, Bryce Canyon, the North Rim of Grand Canyon, plus many state parks and outdoor attractions). This means demand is seasonal – very strong in summer and shoulder seasons, lower in winter. According to data from CoStar, in the trailing 12 months around its opening, the Zion National Park submarket (which includes Kanab and Springdale, etc.) had an occupancy of about 58.7% and an ADR of $190.26, resulting in a RevPAR of $111.65. These metrics indicate that the area achieves fairly high room rates (due to peak season pricing when parks are busy) but occupancy is moderate, likely because of the off-season lull. In fact, the submarket’s occupancy was down about 4.8 percentage points year-on-year, and RevPAR was down 4.4%, even though ADR inched up by 0.4%. Why the decline? A major factor was new supply: SpringHill Suites Kanab itself was a new entrant providing 127 additional rooms in a small market. The data shows the Zion area had exactly 127 new rooms delivered in the past year (which is this hotel) and the broader “Utah South” region saw 901 new rooms delivered, a 609% YoY increase in new supply. This enormous percentage jump highlights that very few rooms were added the year before, so 2024 saw a wave of openings regionally (possibly including this SpringHill and other hotels around Zion/St. George). Meanwhile, demand (occupied room nights) in the submarket actually dipped slightly (-0.5% YoY). Flat or falling demand combined with a big spike in room supply naturally pushed occupancy down. The SpringHill Suites entered this environment in late 2024, so it faces the challenge of building market share against not only existing competitors but also in a market where travel demand has softened somewhat from the prior year’s highs.

Despite these headwinds, SpringHill Suites Kanab benefits from certain strengths of its location. Kanab’s hotel market, though smaller than Springdale (at Zion’s main gate), is strategic – Kanab allows visitors to access multiple parks (it’s centrally located between Zion, Bryce, and the Grand Canyon North Rim). The ADR of about $190 in the submarket is well above the U.S. average, reflecting the pricing power during peak tourist season. SpringHill Suites, with its upscale positioning, is likely capturing a segment of travelers willing to pay $200+ per night in summer for a newer, comfortable hotel experience. Its competition in Kanab includes a few independent motels, some midscale chains (Hampton Inn, Holiday Inn Express opened a few years earlier), and perhaps one or two boutique inns. As one of the only upscale-branded properties in town, SpringHill can differentiate itself and justify a rate premium. The performance ramp-up for this hotel will probably follow the typical pattern: starting with relatively low occupancy in the initial months as it builds awareness, then ramping to stabilized occupancy over 12–24 months. Given the submarket’s ~59% occupancy, a stabilized target for the hotel might be in that ballpark or higher (SpringHill could aim to outperform the market if it pulls demand from older competitors). The fact that the region’s occupancy was slightly higher (60.1% in Southern Utah overall) and also down ~1.8% YoY implies that Kanab’s trends mirror a regional dip in travel in late 2024. It could be due to fewer visitors post-pandemic boom or other factors (e.g., high gas prices tempering road trips).

From an investment perspective, the Kanab SpringHill Suites is a case of a new hotel opening in a market just as the broader industry is cooling off. Its success will hinge on capturing enough of the tourist flow to Zion/Bryce and perhaps developing off-season business (maybe small conferences or retreats, leveraging that 375 sq ft meeting room and relatively affordable winter rates). The local demographic data shows Kanab is a very small town (population ~3,500), so essentially all hotel demand is from visitors, not local business. The hotel’s development cost isn’t listed in public data, but the Kane County property assessment in 2024 valued it at about $10.9 million (roughly $86k per room), which gives a sense of the investment scale. The owner, A&B Hotel Management, likely chose Kanab seeing a gap in the market for an upper-tier hotel. If the hotel can achieve something close to the submarket ADR of $190 in peak season and perhaps $100 in off-season, with annual occupancy in the 55–60% range, its annual RevPAR might be around $100–120. That would be in line with the submarket RevPAR of $111, and potentially higher once it stabilizes and lifts market share. The case of SpringHill Suites Kanab underscores several broader points: the importance of location (even small markets can justify upscale hotels if they are gateways to major attractions), the impact of new supply (one new hotel can shift market metrics in a low-supply area), and the long-term confidence in leisure travel (opening a hotel in 2024 in a leisure destination suggests the owners and Marriott believe travel demand to parks will remain strong for years to come). As the hotel enters 2025, it will be navigating the industry trends we discussed – for instance, labor will be an issue (hiring in a small town can be tough; they may rely on a small staff cross-trained for multiple roles), and maintaining rates in an inflationary but price-sensitive climate will require careful revenue management. Early indications (anecdotally, from initial guest reviews and market reception) show that SpringHill Suites Kanab is quickly becoming one of the top choices in the area, as expected for a new property carrying a trusted brand name. Over the next year or two, its performance data (occupancy, ADR) will signal how well upscale select-service can do in a remote leisure market, and whether it validates the development despite the broader industry slowdown.

Market Share Context – Upscale Segment Analysis

Placing SpringHill Suites in the context of its competitive segment provides further insight into its role and prospects. SpringHill operates in the upper-midscale to upscale segment, which is a substantial and highly competitive category in the U.S. lodging industry. By the numbers, the combined Upscale & Upper Midscale class represents the largest portion of U.S. hotel supply: about 2.45 million rooms, roughly 42% of the nation’s total rooms. This is the “middle” of the market where brands like SpringHill Suites, Courtyard, Hilton Garden Inn, Hampton Inn, Holiday Inn Express, etc., compete for business and leisure travelers seeking mid-priced accommodations. The segment’s current performance metrics are solidly average: over the past 12 months Upscale/Upper-midscale hotels achieved around 66.9% occupancy and a $99.68 RevPAR (ADR about $149), which is very close to the U.S. all-segment average RevPAR of $100. This indicates that the segment tracks overall industry health – when travel demand is robust, this broad middle segment benefits broadly, and when growth slows, this segment also sees the cooling (as we saw with recent flat RevPAR growth).

In terms of RevPAR trends, the upscale segment saw rapid recovery after 2020, but coming into 2024–2025, RevPAR growth has plateaued. Most markets are finding that occupancy has stabilized or slipped slightly and ADR cannot rise much more without impacting occupancy. Thus, for SpringHill Suites and its direct competitors, RevPAR is flattish year-over-year – essentially the segment is in a holding pattern after the post-pandemic rebound. It’s notable that in early 2025 many mid-tier hotels had to lower rates slightly to maintain occupancy, indicating a competitive environment. However, the demand profile for this segment remains strong in absolute terms: it caters to a huge swath of travelers, from road-trip families to mid-level business travelers to tour groups. In fact, even as high-end luxury hotels chase affluent travelers, much of America’s pent-up travel demand in 2021–2023 was absorbed by these mid-range hotels (people opting for reliable brands on domestic trips). As that demand normalizes, occupancy in this segment has settled in the mid-60s percentile, which is a historically typical level.

When analyzing market share within the upscale segment, SpringHill Suites holds a competitive but not dominant share. With ~500 properties, it’s one of the larger upscale brands, but others like Courtyard by Marriott (~1,200 globally, perhaps 800 in the U.S.) and Hilton Garden Inn (~900 worldwide) have comparable or greater presence. Additionally, newer entrants and adjacent segments increase competition – e.g., extended-stay brands like Residence Inn or Homewood Suites attract a similar customer base for longer stays, and high-end limited-service brands (like Hyatt Place or EVEN Hotels) carve niches too. SpringHill’s strategy to maintain and grow share involves continual development in diverse markets – it has been opening hotels not just in big cities but in small towns (as seen with Kanab) and suburban centers. One metric of note is the development pipeline: the Upscale & Upper Midscale category has the largest pipeline of new rooms among all chain scales. As of late 2025, about 82,670 rooms are under construction in this segment, accounting for well over 60% of all U.S. hotel rooms being built. In the last year alone, 43,652 new rooms opened in the Upscale/Upper-mid segment. This far outstrips the luxury segment’s new openings (~19k rooms) or the economy segment (~19k as well) in the same period. The numbers underscore that developers and brands have been heavily focused on the select-service upscale space, which includes SpringHill Suites, Hilton’s Tru (upper-midscale), IHG’s avid (midscale) and many others in adjacent tiers. The rationale is clear: these hotels are cheaper to build per room than high-end hotels, and demand for them is widespread across large and small markets.

However, the development pace is now cooling. As discussed in the industry context, high interest rates and construction costs are pumping the brakes on new projects. This is likely to particularly affect the upscale select-service segment, because many pipeline projects are franchise hotels by smaller developers who are sensitive to financing costs. The IBISWorld analysis notes that major franchisors (Marriott, Hilton, etc.) traditionally rely on continuous new construction for ~70% of their growth, and this slowdown in new builds will limit expansion plans. We are already seeing that some planned SpringHill Suites projects (and competing brand projects) are delayed – developers are waiting for interest rates to ease or material prices to come down. Construction cost inflation hits this segment hard since profit margins are thinner than luxury projects; a 20% cost overrun can make a select-service project unfeasible. Items like furniture, fixtures, and equipment (which are standardized for SpringHill) have risen in price due to tariffs – for example, many SpringHill Suites use imported furnishings and textiles, and tariffs on Chinese goods (like upholstery, casegoods) above 100% have doubled the cost of some FF&E packages. This environment forces either value-engineering the hotel design or postponing development until economics improve.

On the flip side, the broad appeal of the upscale/upper-midscale segment ensures that once financing conditions improve, the pipeline could revive quickly. There is evidence that many projects are queued up in planning (waiting for green lights). Industry construction data shows approximately 70% of all hotel rooms under construction are in the “lower chain scales” (i.e., midscale, upper-midscale, upscale limited-service). This means developers still favor these types of hotels – they’re simply constrained at the moment. For SpringHill Suites, this implies that its growth trajectory is temporarily slowed but not halted. We should expect fewer new SpringHill openings in 2025–2026 than in the prior few years. Still, SpringHill’s segment is better positioned than luxury or large-scale convention hotels, which almost completely stalled in new development. The select-service model’s popularity with lenders (when credit is available) is historically strong, because these hotels have lower operating costs and can be profitable even at moderate occupancy. Additionally, from a market share standpoint, every major hotel company is doubling down on this segment – for instance, Hilton is expanding Hilton Garden Inn and Hampton, IHG has Holiday Inn Express and avid, Hyatt is growing Hyatt Place – so competition among brands is intense. SpringHill Suites has held its own by leveraging the Marriott engine and carving out a niche as a stylish, all-suites option. The brand often benefits from being first-to-market in smaller cities where Marriott’s Courtyard or Residence Inn might not yet be present; this gives SpringHill an edge to build loyalty in those locations.

In the RevPAR context, upscale select-service hotels like SpringHill have seen small shifts in segment RevPAR recently. For example, through July 2025 upscale RevPAR was essentially flat to +1% (as noted earlier). If we break down components: occupancy slipped a bit while ADR rose slightly. This suggests that going forward, these hotels may not be able to count on across-the-board rate hikes to drive revenue; instead, they’ll need to differentiate and perhaps capture market share from competitors to improve RevPAR. SpringHill Suites, with its value-added approach (bigger rooms, free breakfast, etc.), might win travelers from a competing brand that charges for breakfast or has smaller rooms – thereby boosting its own occupancy at others’ expense. We also see a trend of amenity enhancements in this segment to attract guests: some upscale select-service hotels are adding evening social hours, lobby bars, or enhanced fitness facilities to stand out. For instance, new SpringHill prototypes often have a lobby bar offering craft beers and small plates in the evenings – something unheard of in older select-service models. These moves blur the line between select-service and full-service, but are targeted to meet guest expectations (especially younger travelers who like to socialize on property). While adding such amenities can incrementally raise operating costs, they can also support slightly higher room rates or occupancy if done right.

Another point in market share context is the impact of consolidation and brand proliferation. Marriott itself has multiple brands in the upscale/select-service space (SpringHill Suites, Fairfield Inn, Four Points, AC Hotels, etc.). There is some internal competition for development and for guests among these, but Marriott segments them by design and target audience. SpringHill’s unique selling point is being all-suite and geared towards longer stays than a Fairfield, but shorter stays than a Residence Inn. Industry-wide, consolidation (like recent mergers and acquisitions) has led to big companies controlling many brands, which can benefit a brand like SpringHill by providing access to broad distribution channels. But it also means owners have choices – an owner who wants to build an upscale hotel might choose between SpringHill Suites, Hilton Garden Inn, IHG’s new Voco brand, etc. SpringHill’s strong performance and franchisee satisfaction (it’s often ranked as one of Forbes’ top franchises to buy in its investment category) help it attract developers, which is crucial for growth.

Finally, considering construction and operating costs together: Upscale select-service hotels currently face higher construction costs (per key) than pre-pandemic, but their operating model (limited F&B, lean staffing) is an advantage in an era of high wages and staff shortages. Labor efficiency in this segment means a hotel of 120 rooms might operate with 20–30 full-time staff, significantly fewer than a full-service of similar size. This keeps the segment attractive to investors concerned about the ongoing labor crunch. As noted earlier, hotels are employing tech to further reduce labor dependence (mobile check-in, digital concierge, etc.), and SpringHill Suites properties are among those adopting such measures (for example, many SpringHills now offer mobile key entry and chat-based guest requests). In an environment of slowing RevPAR growth, cost containment is key – and this is where the select-service model shines, often yielding higher GOP margins than full-service hotels.

In summary, SpringHill Suites sits in a vital segment of the hotel industry – one that commands the largest share of rooms and has been the focus of development in recent years. The segment’s fortunes mirror the overall industry, and right now that means steady but slow growth with pressure on both the top line (rates/occupancy) and bottom line (costs). SpringHill’s competitive positioning within this segment is strong, but it must continue to adapt as market dynamics evolve: focusing on its core customer value proposition (spacious, affordable comfort) while responding to trends like bleisure travel and technology integration. With the development pipeline decelerating, the existing SpringHill Suites portfolio may actually see a period of slightly reduced new competition in the immediate term, allowing it to consolidate its market share. And as travel demand eventually picks up with economic cycles (and events like the 2026 World Cup and 2028 Olympics in the U.S. likely boosting tourism), the upscale select-service hotels are poised to capture a significant portion of that upswing due to their ubiquitous presence and broad appeal. Investors and industry observers will be watching how brands like SpringHill Suites navigate the current plateau and prepare for the next phase of growth – balancing prudent expansion with maintaining the quality and consistency that have made it a reliable choice for travelers in its 25+ years of operation.

September 15, 2025, by a collective authors of MMCG Invest, LLC, (retail/hospitality/multi family/sba) feasibility study consultants.

Sources:

• CoStar – U.S. Hospitality National Report, Sep 2025: industry performance, supply pipeline, and segment data.

• IBISWorld – Hotels & Motels Industry Report (Sep 2025): analysis of industry trends, labor challenges, and development costs.

• Marriott International / SpringHill Suites – brand information and hospitality news.

• CoStar Property Listing – SpringHill Suites Kanab: specific property details, market stats, and ownership info.

• Industry publications and surveys – traveler behavior (bleisure trend, loyalty stats) and franchise performance.