Proximity to key demand generators—such as highways, airports, and event centers—is a major factor in determining the viability and performance potential of a hotel or extended-stay site. These locations drive traffic volume, guest demand, and brand positioning. Each use type attracts distinct customer segments, and hotel developers closely analyze these proximities when selecting sites or applying for brand approval.
1. Highways and Interstates (1/4 to 1 mile)
- Interstate or major highway visibility within 1/4 to 1 mile significantly increases viability for limited-service, midscale, and economy hotels.
- These hotels depend on transient travelers, business commuters, and roadside bookings.
- Direct access to on/off ramps or frontage roads improves convenience and boosts competitive advantage.
- Brands often require signage visibility from the freeway and prioritize sites with signalized intersections nearby.
- Fuel stations, QSRs, and travel plazas nearby enhance support infrastructure.
2. Airports (2 to 6 miles)
- Proximity within 2–6 miles of regional or international airports supports business-class, full-service, and extended-stay hotels.
- Airport proximity generates demand from flight crews, layover passengers, corporate travelers, and airline partners.
- Shuttle access or transit connectivity increases appeal for select-service and business-class brands.
- Sites within 1–3 miles of terminals are often pre-positioned for premium brands and long-term bookings.
- Noise mitigation and FAA zoning compliance may influence building height or signage.
3. Convention Centers, Sports Arenas, and Event Venues (1/4 to 3 miles)
- Sites within walking distance or a 5–10 minute drive of large event venues perform well across all hospitality segments.
- These venues generate strong peak-period demand spikes, especially on weekends and during festivals or seasonal events.
- Boutique hotels, lifestyle brands, and mixed-use hospitality concepts benefit most from this proximity.
- The ability to offer block bookings, group rates, or meeting space is a strong advantage for brands near major venues.
- Proximity may also allow participation in local tourism marketing or hospitality tax incentive programs.
4. Business Parks, Medical Centers, and Universities (1/2 to 3 miles)
- Business parks generate consistent weekday occupancy for extended-stay and business-class hotels, especially those with long booking durations.
- Proximity to hospitals or medical districts supports demand from patients, families, and traveling nurses.
- University proximity draws sports teams, academic guests, parents, and event attendees, valuable for limited-service hotels.
- Sites with convenient but not immediate adjacency to these generators often strike the best balance of cost and visibility.
5. Brand-Specific Radius Preferences
- Many hotel brands have standard site criteria that define ideal proximity to airports, highways, and demand generators.
- For example, economy and midscale roadside brands prefer <1 mile from highway exits, while upscale brands target <5 miles to urban or airport cores.
- Proximity standards may be tied to minimum daily traffic volumes, drive times, or transit access within a defined radius.
- Compliance with these benchmarks can influence franchise approval, pricing strategy, and construction timing.
