by: Stephen Schindel and JJ Singh
You know the traditional hotel brands… Hampton Inn, Hyatt Place, and Holiday Inn. But are you aware that, according to Hotel News Now, in 2017 there were nearly 270 brand trademarks in the hotel landscape? That seems like a lot, but confusing matters even further is the proliferation of the soft brand.
What is a soft brand?
A soft branded hotel is one with unique designs and features, that is affiliated with a major hotel company. Take for example, the Graham Hotel, a 57-key boutique hotel in Georgetown, Washington DC. The hotel recently joined Hilton’s Tapestry hotel collection this year. The beautiful Elizabeth Hotel, located in the middle of picturesque Old Fort Collins, CO, joined the Marriott Autograph Collection late last year.
Why would an independent hotel affiliate with a chain?
The answer is simple, to make more money.
Independent hotels, on their own, have to work very hard to attract customers. Without a cadre of brand-loyal guests, independents have to expend significant sums on marketing, and make their hotel a destination in of itself. Why is that? If you are a traveler going to a new town, you know what you’re getting with a Courtyard by Marriott. You may even have Marriott rewards and you want to pick up points, or use existing points for your stay. On the other hand, the Alpine Lodge on Main Street could be a total crap shoot. You could be roasting chestnuts over an open fire, sipping warm apple cider, and sitting in the lap of luxury. Alternatively, you could have a guestroom that hasn’t been renovated since 1978, and you need quarters just to turn on the TV. TripAdvisor helps, but it can only tell you so much.
By affiliating with a soft brand, Ascend by Choice, for example, a hotel is able to retain its independent identity and charm, all while tapping into the vast network of loyal guests to a hotel chain. Moreover, hotels are able to use the chain’s software and marketing.
Why wouldn’t you build a soft-branded hotel?
Anytime you introduce a unique product into the market, you have an array of folks who will doubt its viability. For example, an equity investor or lender might ask “how do you know if this will work? Why not just build a Hilton Garden Inn?” Second, you have to spend significant time thinking about the programming and maintaining the chain’s standards, all while paying the hotel chain a sizable royalty to be a part of the network.
What does the guest get out of it?
Many guests find the soft brand experience intriguing because they can choose a unique experience with location-specific designs and amenities. When guests get tired of seeing the same old thing, a soft-branded, destination hotel, can provide a powerful cure for an otherwise hum drum experience.
Soft brands, like dual branded hotels, are probably here to stay, confusing developers and guests alike. A hard problem with a soft cause!