The Growth of Mid-Market Hotels

The Sweet Spot

Mid-market, or ‘Premium Economy’ hotels are on the rise. In the past, hotels have been categorized as either luxury or budget hotels, but with the growing demands and desires of travelers wanting more comfort and amenities without extravagant spending, many hotels are finding a sweet spot in the middle. 

Millennial travelers are moving away from traditional, impersonal rooms to trendy, higher-tech, value-driven experiences. With greater attention to detail and more personalized aesthetics, mid-range hotels also attract business travelers who are often incentivized to manage expenses.

Mid-scale hotels, generally categorized as under 140 rooms with limited service, are innovating ways to compete with higher-end lodging while still enticing value-driven travelers no longer willing to sacrifice service or amenities for a lower price.


The Stella Hotel, Bryan Texas. Texas Travel Awards




What the Mid-Market is Looking for

Quality, convenience and value. Larger rooms with dedicated workspaces, inviting meeting spaces in the lobby, free and fast WIFI, and an overall unique experience.

For hoteliers looking to up the ‘premium’ part to your economy lodging, focus on these amenities:

In the rooms:

  • Plenty of charging stations for mobile devices – digital nomads are still on the move, make sure to accommodate their technology needs
  • Free, fast Wifi – enough said
  • Smart TVs – many travelers have become accustomed to accessing their own media, music, streaming services, etc. Smart TVs allow this integration
  • Larger rooms with a dedicated work area including task lighting and device charging
  • Better beds and linens – well-rested travelers are much happier travelers
  • Lounge areas such as a small couch, a lounge chair, dimmable lighting, and more unique touches for a less cookie-cutter feel
  • Larger bathrooms with quality toiletries
  • Contactless check-in, digital concierges, chatbots, and other tech services

In the lobby and beyond:

  • Free breakfast and coffee – is still a desirable amenity. Find your place somewhere in between the boxed cereal and yogurt on a take-out table and the full-on continental breakfast spread. Consider options such as bagel bars or simple hot food, fresh fruit, and quality coffee
  • Meeting spaces in the lobby – including shared or co-working spaces and private meeting spaces
  • Fitness centers – especially appealing for extended stay customers
  • Convenient location – especially important for business travelers
  • Competitive pricing


Good for Business

This year, Hilton seeing the potential in the mid-market, launched their new premium economy brand ‘Spark by Hilton’ noting ‘the premium economy segment is a fast-growing and lucrative one for the hotel industry.’* Other competitors include Best Western’s SureStay Hotel Group and Red Roof Plus among others. 

While demand for both luxury and budget hotels is still strong, the growing demand for affordable lodging parallels the growth of options like Airbnb and the availability of other short-term rentals. 

The growth of mid-market hotels is gaining on them all. This is a positive trend for travelers who have more options. More competition with luxury and budget brands means lower prices and…more travelers in this somewhat underserved market segment. 

Overall, the rise of mid-market hotels is a win for both travelers and hotels. 



5 Global Hotel Trends in 2023

Texas Travel Awards Hotel/Mid-market

How Mid-scale Hotels are  Shaking up the Industry

*Forbes – Hilton Adds Premium Economy Brand

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