Although the average daily rate for a U.S. hotel room climbed to a record high of $158.67 in 2024, hotel guests in every segment from economy to luxury feel they are getting better value for their travel dollar. According to the J.D. Power 2025 North America Hotel Guest Satisfaction Index Study released today, key drivers of that improved perception of value are higher satisfaction with guestrooms, including condition, cleanliness and room amenities such as in-room smart TVs.
"The effort and expense the industry has devoted to hotel room updates in recent years is certainly paying off," Andrea Stokes, hospitality practice lead at J.D. Power, told Hotel Management. "Yet, there’s still room for improvements and enhancements. J.D. Power data suggest smart TVs and updated room temperature controls are a good place for hotel owners and operators to focus. Of course, hotels can’t neglect the basics, like room cleanliness, maintenance and upkeep of lobbies and common areas, and staff service."
"No doubt there’s a lot of competition from traditional hotels (as well as from alternative lodging options like short-term rentals. The industry is in a good position but can’t afford to rest on past successes. Many consumers are still experiencing the pinch of inflation and higher prices. While this year's J.D. Power Study data shows improvement in perceptions of value for room rates paid, hoteliers need to be vigilant about monitoring guest expectations and delivering a stay experience that meets for exceeds those expectations."
Additional Findings
- I want my smart TV: When asked what hotel amenities they consider “need to have” (vs. “nice to have”), 40 percent of guests selected “smart TV/ability to stream my entertainment,” up from 21 percent in 2019. Nearly three-fourths (72 percent) of guests indicated their room included a smart TV (up from 39 percent in 2019) and 60 percent said they used the smart TV during their stay.
- Capital investments are paying off: Guest satisfaction significantly improved year over year in investment-heavy areas such as condition of guest room furnishings and décor (+.05 points); condition of bathroom fixtures (+.05); and comfort of bed (+.04).
- Value is in the eye of the beholder: Hotel guest perceptions of value received for nightly rate paid increases in every hotel segment in this year’s study, with the most significant year-over-year gains coming in the upscale, midscale and economy segments.
- Hotel app users are more satisfied: The overall satisfaction score among hotel guests who have their hotel’s mobile app downloaded on their mobile devices is 699 (on a 1,000-point scale), 68 points higher than those who do not use their hotel brand’s mobile app.
- Problems, while rare, can crush guest satisfaction scores: The average rate of guests experiencing a problem, such as an odd odor or housekeeping issue, excessive noise or check-in dispute, is just 12 percent across all hotel stays evaluated. When problems occur during the stay, however, guest satisfaction falls 217 points to 460 from 677.
“We’re at an important inflection point in the travel marketplace where several years of record-high hotel demand and the pace of room rate increases is starting to slow,” Stokes said. “Hotel owner and operator investments in guestroom décor and furnishings, in addition to bathroom updates, are paying off in higher satisfaction.
“One area in which hotels can significantly influence guest satisfaction without massive capital expense is with technology like smart TVs and updated room-temperature controls. Travel is becoming more complex with the potential for flight delays or increased road traffic, so guests want hotels to provide the comforts of home.”
Study Rankings
The following hotel brands rank highest in overall guest satisfaction in their respective segment:
- Luxury: The Ritz-Carlton (779)
- Upper Upscale: Omni Hotels & Resorts (731)
- Upscale: Drury Hotels (738)
- Upscale Extended-Stay: Hyatt House (705) (for a fourth consecutive year)
- Upper Midscale: Hampton by Hilton (694)
- Upper Midscale/Midscale Extended Stay: Home2 Suites by Hilton (711) (for a third consecutive year)
- Midscale: Tru by Hilton (723) (for a third consecutive year)
- Economy: Microtel by Wyndham (619) (for a third consecutive year)
- Economy Extended Stay: WoodSpring Suites (600) (for a third consecutive year)
The North America Hotel Guest Satisfaction Index Study was redesigned for 2025, so scores are not comparable with previous-year studies. Now in its 29th year, the NAGSI Study measures overall hotel guest satisfaction based on performance in seven core dimensions (in alphabetical order): check-in/check-out; connectivity; facilities; food and beverage; guest room; staff service; and value. The 2025 study benchmarks the performance of 102 brands across nine hotel segments and is based on responses from 39,219 branded hotel guests for stays between May 2024 and May 2025.
Learn more about the study results here.