Selecting Profitable Hotel Sites at La Quinta Motor Inns
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Kimes, Sheryl E.; Fitzsimmons, James A.
Selecting a good site plays a crucial role in the success of a hotel, and as competition intensifies in the lodging industry, it has become increasingly important. The success of a site is based on competitive, demographic, physical, market awareness, and demand generator variables. We built a regression model for La Quinta Motor Inns, a mid-sized hotel chain headquartered in San Antonio, Texas, that predicted profitability for sites under consideration. We validated the regression model on new data and incorporated it into a spreadsheet decision model that management uses for selecting sites. The model minimizes the risk of picking an unprofitable site.
site selection; hotel location; La Quinta Motor Inn; lodging industry
Required Publisher Statement: © INFORMS. Final version published as: Kimes, S. E., & Fitzsimmons, J. A. (1990). Selecting profitable hotel sites at La Quinta Motor Inns. Interfaces 20(2), 12-20. doi: 10.1287/inte.20.2.12 Reprinted with permission. All rights reserved.