Hotels Cut Back on Multi-Brand Strategy

Hotel brands have become a dime a dozen. In recent years, hotels have frequently announced and launched new brands to appeal to multiple demographic groups and prices points, and in many case cross groups. That is changing. Hotels are beginning to realize quality over quantity and are cutting back on sub-branding, according to experts at ALIS this week. On the opening Boardroom Broadcast panel, featuring moderator Suzanne Mellen , senior managing director at HVS; and speakers Michael George, president and CEO of Crescent Hotels and Resorts; Ken Greene, president of the Americas at the Radisson Hotel Group; and Greg Mount, president and CEO at RLH Corporation, discussed hotel strategy to capture customers.

“We have reduced our brands over the past few years,” said Mount on the panel. That said, we run from budget to upscale, and we continue to look for opportunities.” Mount’s company has decreased its sub-brands from 15 to 9 in the past few years to focus on customer experience and to decrease costs. “Owners aren’t really getting the benefit from soft branding, and costs are going up,” he added. He expects many soft brands will return to independent chains in upcoming years.

George agreed, adding that owners really need to do the due diligence before partnering with a brand to make sure that the ROI is there. However, he said the right partnerships can be beneficial. “As an owner operator, you have a choice about who you align with. If you align with a brand for a reason, so you have to respect their business plan,” he said.