The Impact of a Hotel’s Location

A hotel’s location is a crucial determinant in the overall success of a hotel. A hotel based in a favorable location tends to attract more clients compared to one that is located in an area that is less desirable. This translates to increased revenues. 

This article will examine how surrounding attractions and environment play a key role in determining the overall success of a hotel business.

How does the Surrounding and Environment of a Hotel Determine Its Success?

A hotel that is located in proximity to key tourist attractions like amusement parks, shopping malls, and museums tends to attract more people. Many guests prefer to book a hotel that are walking distance to major attractions ideally because they don’t have to search for means of transport.

Accessibility is also a key reason why more guests are attracted to a hotel. If the hotel is easily accessible via airport, major highways or via public transportation, it’s more likely to attract more guests and visitors. Many guests also consider parking space when selecting a hotel, especially if they travel via a personal car. 

When selecting a hotel location, security and safety are two key things that need to be considered. Visitors prefer to choose hotels that are located within safe neighborhoods for fear of their personal safety. Prioritizing safety and establishing a hotel in a safe neighborhood will lead to more traffic to your business establishment, and this will benefit your business in the long run.

Guests also consider environmental factors when selecting a hotel, and this is a key consideration for any hotel business. A hotel that is located in proximity to a beach or a chain of mountains is more attractive to tourists and guests who are in search of an unforgettable and distinctive experience. 

How Has The Concept of Ideal Hotel Location Changed Over The Years?

Over the years, the concept of an ideal hotel location has evolved and undergone key changes. Previously, most hotels were located within urban cities or in proximity to major tourist attractions. In recent times, the concept has evolved due to the advancements in online booking services and the rise of substitute accommodations like Airbnb. A significant change in the consumer taste has forced hotels to adapt and make changes to their operations.

In the modern world, hotels are expected to embrace sustainable practices and adopt more environmentally friendly practices. Some of the practices that most hotels are expected to adhere to include finding ways to reduce energy consumption, embracing waste reduction practices and improving water conservation.

Due to the rise of acquisitions and mergers in the hospitality industry, iconic hotel brands have been procured by bigger chains. Choosing a hotel based on the location and amenities provided by popular brands is no more, with more features being added to target young travelers. The concept of a hotel room has also evolved to try and accommodate the evolving needs and tastes of the consumers. 

Marriott International is an example of a popular hotel chain that has adapted to the changing hotel location trends. Established in 1927, the hotel group became the first in the world to have more than one million rooms. A merger with Starwood Hotels and Resorts created a platform for success and is a key reason why it had an annual revenue of approximately $20.77 billion in 2022. Marriott International is also a trailblazer when it comes to digital technology in the hotel industry and recently launched an innovation lab focused on leveraging technology to improve customer experience.

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How Technology Advancements Have Improved the Visibility and Accessibility of Hotels

Advancements in technology have helped in improving the accessibility and visibility of hotels. The use of online booking and the use of mobile applications has allowed major hotels to streamline their customer experience and improve their functionality and efficiency. Mobile apps provide hotels with a single service point, and this makes it possible for hotels to improve their operational efficiency.

Guests can now use their smartphones to order room service, check-in or check-out of their hotel rooms and schedule cleaning or maintenance services. As a result of technology, the guest experience has been significantly improved. Hotel staff also have more free time because they can allocate more time to tasks they deem to be more complex.

According to an article from Forbes, Artificial Intelligence (AI) can be used to enhance the customer experience in the hotel and hospitality industry. AI can be leveraged to provide guests with 24-hour assistance on any queries regarding their needs and reservations. The use of AI telephony has significantly reduced the number of calls made to the front desk regarding small and less complex issues.

Role of Market Research and Data Analytics in Making Informed Decisions on Hotel Location

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Market research and data analytics are essential for managers and hotel owners because they provide them with the information they need to make informed decisions. Analysis of the travel patterns, preferences and the evolving market trends of consumers can help hotel owners in determining the best locations for their establishments that will generate more profit for the business.

Data analytics plays a massive role in helping hoteliers to pinpoint which destinations are popular and enjoy frequent visits from travelers. The data and information can be used to determine the best locations to build or expand hotel operations.

Market research can provide insight on the travel patterns and preferences of consumers. Hoteliers can provide surveys aimed at evaluating the behavior of consumers to establish a better understanding of key aspects that most travelers consider when selecting their favored hotel locations. For instance, they might find that most travelers prefer locations that are in proximity to major tourist locations and public transportation.

Impact of Online Reviews and Ratings on Hotel Location

Online reviews and ratings can impact the number of bookings and leads. Most guests consider online reviews and ratings when selecting a particular hotel, and most are always reluctant to choose a hotel with more negative reviews and fewer positive reviews. 

Hotels can use technology to control their online reputation by regularly monitoring their social media channels and reviews. When they notice any negative feedback from clients, a swift response can help in managing their reputation effectively. Monitoring client reviews can provide valuable insight that hotels can rely on to improve customer experience.

Challenges Hotels Face Due to Advancements in Technology

One key challenge that most hotels face is competition from alternative means of accommodation like Airbnb. These alternative means of accommodation provide distinctive guest experiences compared to hotels; guests can choose to either rent a villa or reside in a private home.

Another challenge is tied to online reputation management, where ratings and reviews are becoming more integral to the success of hotels. Hotels are today required to establish better strategies of managing the reputation of their brands to avoid weakening their reliability.

The rise of online booking means that hotels face a challenge of adopting new technology. Hotels are increasingly required to integrate new emerging technologies like artificial intelligence, mobile apps and chatbots to their operations if they want to maintain a competitive edge over their rivals.


The hospitality sector is currently at a state of evolution, and this means that there will always be emerging trends and technological advancements that affect hotel location. One prediction is that personalization will become more important in the future, and most hotels will need to rely on market research, data analytics and artificial technology to provide clients with personalized guest experiences. Contactless technology and the use of mobile payments, mobile check-ins and mobile keys are expected to grow in popularity with less contact between the hotel staff and guests becoming more favorable.

If you need tips and valuable insight on how you can stay ahead of the evolving hotel location trends and technology, you can count on NewGen Advisory. Our experienced team relies on data analytics to provide clients with insightful and actionable data that they can rely on to improve the success of their hotel business. Please contact us today to learn how we can help. 

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