DUAL BRANDINGLaura Neirinckx

3 HM Internationale Vakliteratuur

2015

Overview⦿ History ⦿ What it means ⦿ Advantages ⦿ Disadvantages ⦿ Trend Impacts ⦿ Industry Examples ⦿ Success Strategy

History

History ⦿ The Eighties —> First Dual-Branded hotel

⦿ 2008 —> Concept limited-service & extended-stay launched

⦿ 2013 —> Multi-Branded project: Aloft, Fairfield Inn and Hyatt Place

History What It Means Advantages Disadvantages Trend Impact

Examples Success Strategy

What It Means

What It Means

⦿ BRAND (COURTYARD BY MARRIOTT)

⦿ MOTHER HOLDING(MARRIOTT)

⦿ BRAND (THE RITZ CARLTON)

History What It Means Advantages Disadvantages Trend Impact

Examples Success Strategy

What It Means⦿ To mix in a harmonious operation

⦿ Different segmentation target

⦿ IDENTITY

⦿ Benefits for hotel brands and guests

History What It Means Advantages Disadvantages Trend Impact

Examples Success Strategy

Advantages and Challenges

Advantages⦿ Maximize property value & revenue —> Minimize largest expenses

⦿ Increasing # rooms

⦿ Variety room types

⦿ Segmentation expansion

⦿ Co-location: All facilities needed once & “UP-SELLING”

⦿ Operational efficiency: Personnel flexibility

History What It Means Advantages Disadvantages Trend Impact

Examples Success Strategy

⦿ Hard to keep IDENTITY

⦿ AVOID MIXING, choose close brands: facilities & standards

⦿ FUNDING ISSUES: difficulties in negotiation & transaction costs

⦿ CONTRACT: Management —> terminate contract = hotel ??

⦿ FRANCHISE AGREEMENT: detailed elaborate approach

Challenges

History What It Means Advantages Disadvantages Trend Impact

Examples Success Strategy

Trend Impacts

Trend Impacts⦿ Cookie cutter hotel —> Modular hotel development concept

⦿ Competitive environment — Confusing identities = Difficult

⦿ Increasingly popular with DEVELOPERS

⦿ + + + PROJECTS

⦿ United States & Europe: Full- & select-service brand concepts

History What It Means Advantages Disadvantages Trend Impact

Examples Success Strategy

Industry Examples

Industry Examples⦿ MARRIOTT: 3 Multi Branding Strategies ● Ritz Carton ● Renaissance ● Fairfield Inn

⦿ HILTON WORLDWIDE: 13 Hotels ● US - UK - Germany - Canada - Turkey

⦿ STARWOOD + HYATT

History What It Means Advantages Disadvantages Trend Impact

Examples Success Strategy

Succes Strategy

Success Strategy⦿ ROLAND BERGER STUDY —> 3 Key Questions

⦿ “Should they try to compete outside their traditional segments?”

⦿ “Which brand architecture is best for them?”

⦿ “What are the right tactical choices regarding product offerings and value chains?”

History What It Means Advantages Disadvantages Trend Impact

Examples Success Strategy

Conclusion⦿ Balance Advantages & challenges

⦿ Very successful strategy

⦿ Cost-effective - WIN-WIN situation

⦿ Innovative response to demand hotel market environment

⦿ First dual-branded hotel in BELGIUM??17

THON HOTEL EU Brussels⦿ 4 * Hotel - Business & Leisure Segment

⦿ 405 rooms - Conference rooms - Fitness

⦿ Opening in Brussels —> Leader & brand recognition

⦿ Optimal use of site

⦿ Maximize revenue18

DUAL-BRANDING in hotel industry

⦿ QUESTIONS or REMARKS

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