Mid-market hotel groups have come under close scrutiny in recent months. Among
journalists, analysts and industry leaders alike, those of a bearish nature have
forecase the demise of the traditional UK three-star hotel industry and, along
with it, the doomed prospects of the mid-market hotel group operators. This
descent into oblivion is expected in the next recession, whenever that is,
according to these pundits. Their reasoning is that a number of mid-market
(three-star) hotel chains, such as Regal, Jarvis and MacDonald, acquired a
number of so-called ‘obsolete’ hotels from the larger quoted
hotel chains during the 1990s. These hotels were written off for their poor
performance in the last recession, and it is held that they will therefore
necessarily underperform again in the next recession. Repetition of such views
has become increasingly common, almost a mantra — ‘four-star
and budget good, three-star bad’. The authors believe that this view
is ill considered and should be challenged. This report makes that challenge.