Hotel: New Converts, Strategy and Synergy

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.