SYgle>Industry Information>Value, experience motivate major brand launches in 2017

Value, experience motivate major brand launches in 2017

Column: industry Tag: hotel brands,hotel industry,soft brands Published: 2018-01-02 14:58 Source: Author:

GLOBAL REPORT—If there are three certainties in life, they’re death, taxes and new hotel brands. Like most years in recent history, 2017 was a year in which several new brands were announced within the hotel industry.

Many of those brands—like InterContinental Hotels Group’s Avid Hotels—focus in on the midscale segment, anticipating a renaissance for the budget-minded travel. Several others—like Hilton’s Tapestry Collection and Wyndham’s Trademark Collection—are soft brands looking to incorporate some independent flair into large-scale distribution platforms.

C. Patrick Scholes, managing director of lodging and leisure equity research for SunTrust Robinson Humphrey, described the fixation on midscale as “not surprising considering these chain scales are outperforming the industry today.” He added there’s a business rationale for the focus on more lifestyle properties, as well.

“There is a continued push to get guests out of their rooms—reportedly a trend favored by younger travelers who want to be in the public areas,” he said. “Regardless of whether or not they want to converse with others, they still want to be seen, and we continue to see new brands focusing on enhanced revenue-generating public space offerings.”

Michael Bellisario, senior hotel research analyst and VP at Robert W. Baird & Co., said despite any rationale from c-corps, owners are feeling a bit of brand fatigue.

“There are too many hotel brands,” he said. “And I’ve heard from more and more people that the lines are being blurred between brands.”

As far as what brand seems to be the talk of the industry, Bellisario said that distinction actually goes to one launched in 2016, not 2017.

Among owners, “we hear about Tru the most,” he said. “There’s an increased focus on returns for owners. They’re in efficient boxes, and that’s why you see select service in urban markets.”

Perhaps not coincidentally, IHG’s Avid brand operates in the same chain scale as Hilton’s Tru, and with the same rationale of being inexpensive to build and operate.

Those who believe the brand landscape is already too crowded shouldn’t expect any relief in 2018, as Hilton has already promised more brand launches in the new year.

Here is a quick rundown with key facts about some of the more noteworthy brands officially announced in 2017.

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