GREENBELT, MD-When franchise agreements expire and come up for renewal, some hotel owners find themselves at a crossroads. Do they renew their contract with their existing franchise, or do they consider moving to a new franchise flag? At a time when the competition is stiff and hotel owners are looking for any competitive edge that can help them stand out from the crowd, opting for a brand conversion is an increasingly popular option.

Getting a fresh start and launching a new brand identity is an appealing prospect, particularly for owners struggling to turn around an underperforming property. With crowded and competitive markets and a lending environment that is still less than ideal, opportunities for promising new builds are relatively few and far between. In contrast, the comparatively inexpensive proposition of a brand conversion—and its correspondingly positive ROI potential—makes strategic conversions arguably more attractive than ever. When done well, a brand conversion provides much of the marketplace punch and the perception of “newness” that you get from a new build, only without the significant investment and exposure required for a ground-up development.

However, executing a successful brand conversion is not as simple as swapping out signage and printing new business cards. Hotel owners considering such a move need a trusted partner and must carefully sift through their options before selecting the right brand for their property. They also must strategically account for the costs, timelines and tactics necessary to renovate and remake their property—and then successfully launch it, setting it up for financial success.