Ebbie Nakhjavani speaks at Meet the Money 2019

Speaking at Meet the Money 2019, the National Hotel Finance & Investment Conference, CEO Ebbie Nakhjavani lays out why these hotels remain the top choice for developers and his outlook on the future of the space. In terms of EKN Development Group’s strategy, the company shapes how it selects products and where they go by scouring demand, he said. To this end, gross operating profit continues to grow for select-service hotels driven mainly by the sophistication of both design and food-and-beverage offerings. “We feel that at the end of the day, for us as developers, NOI determines the majority of our decisions,” he said. However, the real benefit of select-service hotels is that in general the approval process through local agencies is both faster and easier as select-service hotels create much larger economic benefits. “It’s really the optimum brand that allows you flexibility and to provide the amenities people are looking for.”

Looking towards the future of the select-service segment, Nakhjavani believes that bar any adjustments in the economic climate the industry shall maintain its strength. Select-service hotels offer a full-service experience to guests at a lower cost, driving revenue up and competing in the market. “This allows developers to go into urban areas and build new, exciting hotels with all the amenities needed without having to increase the cost per key.”