J.D. Power report: Hotel Management Companies Face Food and Beverage, Facilities Maintenance Challenges as Operating Expenses Rise
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GLORising operating costs are putting pressure on third-party hotel management companies as they work to deliver the experiences guests expect. According to the J.D. Power 2025 North America Third-Party Hotel Management Guest Satisfaction Benchmark,SM released today, guest satisfaction declines significantly year over year in the areas of food and beverage quality and facilities maintenance as management companies contend with increasing operating costs.
“In hotels where the owner is not operating the property, guest satisfaction ultimately rests with third-party management companies that operate on behalf of hotel owners,” said Andrea Stokes, hospitality practice lead at J.D. Power. “While these companies are all focused on bringing a level of standardization and consistency to the guest experience, we’re starting to see some challenges emerge where guest satisfaction is faltering, particularly for quality of food and beverage and hotel facilities upkeep, which can often indicate rising costs.”
Following are some of the key findings of the 2025 benchmark:
- Food and beverage satisfaction declines: More than three-fourths (77%) of guests in branded hotels run by the largest third-party management companies choose to dine in the hotel, up from 73% in 2024. Yet, guest satisfaction declines significantly for quality of food, cleanliness of dining area(s), food and beverage presentation and ambiance.
- Hotel facilities maintenance in focus: Guest satisfaction with appearance of hotel exterior and grounds and maintenance of pools, fitness centers and laundry areas also decline significantly in this year’s benchmark.
- Staff service and guest room appearance deliver on guest expectations: In other critical operational areas for third-party hotel management companies, such as staff service and overall appearance and condition of guest rooms, guest satisfaction is on par with 2024.
Benchmark Ranking
Atrium Hospitality ranks highest in overall guest satisfaction with a score of 722 (on a 1,000-point scale). Crescent Hotels and Resorts (708) ranks second, while Columbia Sussex (703) and Davidson Hospitality Group (703) each rank third in a tie.
The North America Third-Party Hotel Management Guest Satisfaction Benchmark was redesigned for 2025, thus overall satisfaction index scores are not comparable with previous years. The benchmark, now in its sixth year, evaluates guest satisfaction with branded hotels that are operated by the largest third-party management companies. It is based on seven dimensions (in order of importance): guest room; hotel staff service; value for prices paid; check-in/check-out; hotel facility; food and beverage; and hotel connectivity. The benchmark includes third-party hotel operators with more than 14,000 branded hotel rooms under management. The 2025 benchmark is based on 5,022 guest responses for branded hotel stays from May 2024 through May 2025.
For more information about the North America Third-Party Hotel Management Guest Satisfaction Benchmark, visit https://www.jdpower.com/business/third-party-hotel-management-guest-satisfaction-benchmark.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto-shopping tool can be found at JDPower.com.
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