US – The boutique hotel chain is focusing on university towns rather than tourist hotspots.
Graduate Hotels’s latest location in Berkeley, California, highlights the shift in focus in the hospitality sector towards secondary and tertiary markets. The hotel chain chooses its locations based on their proximity to universities or colleges, providing accommodation and support for tourists, visiting professors, company representatives and students’ families.
‘Over time, we were starting to see less value creation in some of the big major metropolitan areas across the country,’ says Tim Franzen, president of Graduate Hotels. ‘We started to look for other avenues of investment, like moving into more secondary markets.’