SANTO DOMINGO– For years, planning a family trip followed a simple rule: find a reliable, clean hotel at a reasonable price, not for luxury, but for a peaceful getaway. Today, that equation is beginning to falter. Large hotel chains are grappling with the unexpected challenge of maintaining consistent standards in hotels catering to the middle class without raising rates.
The problem has been deepening slowly and quietly. Owners of budget and mid-range hotels—those where a night typically costs between US$90 and US$150—have postponed renovations due to inflation, high interest rates, and debt accumulated after the pandemic. The result is a growing perception among travelers: many say the rooms seem more expensive than they actually are.
Renovating without closing: the new hotel strategy
Faced with this situation, major hotel chains are adjusting their playbook. Instead of costly and lengthy renovations, many are opting for more economical and faster refurbishment models. More durable materials, functional furniture, and pre-assembled pieces allow them to modernize rooms without having to close hotels for weeks.
At the same time, technology is beginning to play a decisive role. Some companies have moved beyond traditional systems that reacted to guest complaints and now use predictive analytics to detect problems before they affect the guest experience. This is all because anticipating problems is cheaper than dealing with crises.
These advances are already reflected in part of the market. Nearly 's portfolio Holiday Inn in the Americas is new or has been renovated in the last seven years, a sign that the race to modernize is already underway.
New brands for a more price-sensitive traveler
Another response has been to create brands designed from scratch for travelers seeking a balance between cost and quality. Since 2022, major groups have launched more than a dozen new brands within the economy and midscale segments, attempting to cater to a middle class with tighter budgets.
The trend also includes the conversion of older hotels. Properties that previously operated as more exclusive options are now being downgraded after strategic renovations, allowing them to offer more competitive rates without starting from scratch. Meanwhile, the franchise market is also shifting. Some independent hotels, pressured by costs, are choosing to join large chains to benefit from technology, global distribution, and discounts on furniture and equipment.
What's happening offers an interesting lesson for the real estate and tourism sectors, as the mid-range segment is no longer the most predictable area for the hotel business. Between more demanding travelers and owners who carefully manage every investment, the balance between price and experience has become the new battleground.
Recommended readings:
