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Hotel leaders talk value — and challenges — of proliferating brands
This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. At the NYU International Hospitality Investment Forum in New York City this week, the names of hotel brands were everywhere — but they weren't instantly recognizable to everyone at the event. 'It seems like everybody's launching a new hotel brand every day, and this is, I think, not going to work,' said Barbara Muckermann, CEO of Europe's Kempinski Group, onstage during a panel on examining the value of brands. 'If I'm confused and I'm actually paid to understand the market, imagine a consumer.' Both Marriott International and Hyatt Hotels, for instance, launched new brands just last month. While further hotel brand introductions might seem like overkill to some, hotel executives speaking at the event agreed that brands, when operated well, drive significant value — even if their brand strategies are as diverse as the brands themselves. Over two panels — one a CEO roundtable and the other a conversation about brand acquisitions — hotel leaders shared strategies and predictions for the role brands play in the future of hospitality. The following are top takeaways from the experts, who discussed recent mergers, guest loyalty, expansion plans and more. According to Margaritaville CEO John Cohlan, 'the core role of brands is to deliver on the emotional expectation that people have about an experience.' That comes with work, though — and perhaps even more work for successful brands, he noted. 'The good news is you have a brand that resonates with people. The bad news is you have a brand that resonates with people, because people have an expectation. The hardest part is to continue to meet that expectation,' Cohlan said in a CEO roundtable Tuesday morning dubbed 'CEOs in Conversation: Examining the value of brands in the success of a hospitality property.' Meeting that expectation drives more than guest satisfaction, however; it deepens guest loyalty, ultimately contributing to the bottom line, according to Greg Juceam, president and CEO of Extended Stay America. 'Strong brands have OTA contributions in the mid teens [percentages], because the brand drives the business,' Juceam added. And those loyal guests not only stay more often, but they also 'stay longer and they spend a lot more money,' according to John Murray, president and CEO of Sonesta Hotels. 'A loyalty program is about data,' said Larry Cuculic, president and CEO of BWH Hotels. 'It's about having the information about your consumer so that you can personalize travel in the future, so you can market to them wisely, so you know where they stay, historically, and you can contact them.' 'The whole idea of a brand is that people want to come and engage with you directly,' said Cohlan, pointing to the fact that strong loyalty can be a way to sidestep OTAs. That loyalty, though, is harder to attract without firm, thoughtful brand standards. 'It's about making sure that we've tested everything that we put in [to the brand],' Juceam said. 'It's about making sure that brand standards are really creating value.' Kempinski Group's Muckermann also emphasized the importance of deeply considering a brand's standards and identity. 'You need to know what you stand for, otherwise you're not the brand,' she said. 'And particularly when we look at the luxury end of the spectrum, it is really the brand that will make the difference between the functional benefits and the emotional benefits [of a hotel stay]. And at the end of the day, that will increase the [customer's] willingness to pay because it increases the [brand's] differentiation.' Deeply considering these standards essentially makes a return on investment case, she added, justifying 'the hundreds of millions of dollars that you need every year to be able to have your brand out there as one of the leading brands.' In a Monday afternoon panel — 'Transacting brands: Unpacking the dynamics behind the sale and integration of hotel brands' — Amar Lalvani spoke about why Standard International welcomed its multimillion-dollar acquisition by Hyatt Hotels last year. Now president and creative director of Hyatt's Lifestyle Group, Lalvani said, '[The Standard] started opening in places like Bangkok and Melbourne and the U.K. and Maldives. We built beautiful hotels, but you need the engine to make them really successful.' As the brand scaled, 'I would say we outgrew our infrastructure.' Lalvani and Hyatt agreed that the team behind The Standard's brand should stay on — hence the newly created Lifestyle Group. 'My request was that we keep our whole team together, which we did,' he said. When asked if it would have been a dealbreaker if Hyatt had insisted on taking over the brand entirely, Lalvani said yes. Hyatt's Lifestyle Group opened its inaugural property, Andaz Miami Beach, in Florida last month. Mike Hollman, Hilton's senior vice president, treasurer and head of strategic finance, pointed to a similar strategy at play when his company acquired the Graduate Hotels brand for $210 million last year. 'As part of the transaction, a number of the [previous Graduate Hotels owner] AJ Capital and Graduate leadership came over,' Hollman said. Former Graduate Hotels President Kevin Osterhaus joined Hilton as president of global lifestyle brands, where he's now tasked with overseeing the company's ambitious plans for growth in the segment. 'It's a collaborative effort. One beauty of having that expertise join Hilton is understanding the history, the learnings and what they originally created,' Hollman added. 'And how do you bring that into our ecosystem and keep it unique, keep it special, but also allow it to grow?' Hollman noted that Hilton is actively looking at bringing the Graduate brand to other markets. Meanwhile, G6 Hospitality Chairperson Ritesh Agarwal, the founder of India's OYO Rooms, shared plans for the company's brands. OYO completed its $525 million acquisition of G6 Hospitality — the owner of the Motel 6 and Studio 6 brands — in December. 'We will keep these as three different brands, between OYO, Motel 6 and Studio 6, with different propositions,' he shared. The extended stay Studio 6 brand, in particular, 'is going to be a big focus of growth.' Meanwhile, OYO will take a soft brand approach, allowing smaller, 50- to 100-key properties to join its platform. That platform is currently undergoing improvements, with Agarwal noting that OYO is 'doubling down' on the brands' websites. Recently, the company launched a new mobile app. 'We believe in today's world, there is no business which is not a technology business,' Agarwal said. Sign in to access your portfolio
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a day ago
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Travel sector ‘walks a tight rope' as US hotel growth outlook downgraded: report
This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. At the NYU International Hospitality Investment Forum Monday, CoStar and Tourism Economics downgraded their 2025 and 2026 growth projections for U.S. hotel top-line performance metrics, including RevRAR, citing elevated macroeconomic concerns. The companies now forecast that U.S. hotel RevPAR and ADR will grow 1% and 1.3% year over year, respectively, in 2025, down from their previous January projections of 1.8% and 1.6% year-on-year growth. The companies also lowered their RevPAR and ADR growth guidance for 2026 and downgraded occupancy, supply and demand projections for both years as well. The downgrades come as economic uncertainty mounts following President Donald Trump's tariff announcements and other recent government actions. Aran Ryan, director of industry studies at Tourism Economics, said that the economy — and the travel sector — will 'walk on a tight rope' through the second half of this year. Though 'recession risks have eased,' according to Ryan, CoStar and TE downgraded their 2025 and 2026 growth projections for all measured top-line hotel performance metrics on the heels of underperformance in the first quarter of the year. In addition to lowering growth guidance on RevPAR and ADR, the companies now project that occupancy will sit at 62.8% in 2025, down from their January forecast of 63.1%. The companies forecast 0.8% and 0.5% year-over-year growth for supply and demand in 2025, respectively, down from their previous projections of 0.9% and 1.1% growth. The downgrades come amid 'consumers facing higher prices and a weaker labor market, businesses tapping the brakes on investment, and soft international visitor volumes,' Ryan said in a Monday statement. Hotel CEOs noted shifts in traveler demand and booking behavior during Q1 earnings calls, with several companies — including Marriott International, Hyatt Hotels, Choice Hotels International and Wyndham Hotels & Resorts — similarly downgrading 2025 RevPAR guidance, citing ongoing economic uncertainty. Recent Trump administration actions are slated to have a downward impact on corporate travel and international visitor spending as well, per recent reports from the Global Business Travel Association and the World Travel & Tourism Council. Until consumer confidence improves, 'demand is going to remain softer — especially in the middle and lower price tiers,' Amanda Hite, president of CoStar-owned STR, said in a Monday statement. 'Rate is pushing the top line in the group segment, and business transient should continue to recover in a lot of industries, but leisure gains are going to be more isolated,' she said. Hite also noted that booking windows have shortened, which 'adds to the challenges hoteliers will face in the coming quarters.' Onstage at NYU IHIF, Hite shared that bookings for July and August are down from last year. 'This is not something we're raising a big red flag about right now,' she said. 'This is more a highlight of that shortened booking window.' However, it isn't all bad news for hotels. 'The headlines make it seem like things are falling off the cliff,' Hite said Monday. 'But we do have demand growing.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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Choice Hotels continues extended stay push with Everhome openings
This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Choice Hotels International continued its extended stay portfolio expansion with four recent Everhome Suites openings in Texas, and two more are slated to debut in the state this summer, the hotel company announced earlier this week. Choice also broke ground on an Everhome property in Oregon last month and has several more brand hotels in the pipeline. The newly opened and under-construction hotels are in partnership with Choice's long-term development partner, Denver-based Highside Companies. Extended stay has been a focus area for Choice in recent years, as the product type remains highly desirable to hotel owners and developers. As economic uncertainty intensifies, extended stay continues to show promise for stable growth, company leadership noted during a first-quarter earnings call. Since the start of this year, Choice has opened four Everhome Suites hotels in Bastrop, Waco, Brownsville and El Paso, Texas. Two more branded properties are slated to open in the state later this year, one in Amarillo next month and the other in Georgetown in September. Choice has an Everhome Suites under construction in Yuma, Arizona, that is set to open in July as well. And the hotel company broke ground on a branded hotel in Salem, Oregon, last month, which will open later this year. Next month, Choice plans to break ground on an additional Everhome Suites in Dayton, Ohio. Nationwide, the company is 'seeing strong developer interest in Everhome Suites and consistent demand for midscale extended stay accommodations,' Ron Burgett, senior vice president of extended stay development at Choice, said in a statement. The Everhome Suites rooms offer 'the comforts of home,' including fully equipped kitchens, spa-style bathrooms and in-unit laundry, according to Choice. The properties are also located in markets with a diverse range of extended stay demand drivers, which Choice prioritizes when plotting growth, Matt McElhare, the company's lead for extended stay brands, told Hotel Dive earlier this year. Everhome Suites Bastrop, for example, benefits from proximity to several high-profile employers like Starlink and The Boring Co., according to Choice. The Waco hotel, meanwhile, caters to travelers coming to Baylor University, regional hospitals like Baylor Scott & White Medical Center as well as manufacturers and development facilities in the area including AbbVie and SpaceX. Choice has 14 Everhome Suites open, 19 under construction and more than 60 in the pipeline. The brand is on track to have nearly 25 hotels open by year-end, according to the release. The hotel company's domestic extended stay portfolio grew 10.8% year over year in Q1, supported by 6.8% year-on-year RevPAR growth in the quarter. However, Choice downgraded its 2025 RevPAR growth outlook amid mounting economic uncertainty. Extended stay will remain an area of focus for Choice, as it is one of the segments with the highest developer and guest demand, CEO Patrick Pacious said during a Q1 earnings call. Other expanding midscale extended stay brands include Marriott International's StudioRes and YourSpace. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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Noble Investment Group acquires 16 WoodSpring Suites hotels
This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Noble Investment Group acquired 16 WoodSpring Suites hotels, an extended stay brand under Choice Hotels International, the Atlanta-based real estate investment firm announced Wednesday. Noble did not share terms of the deal, and did not immediately respond to a Hotel Dive request for comment. Noble said the acquisitions, which occurred through two portfolio transactions, further advance its platform of branded extended stay hotels — 'an asset class at the convergence of hospitality, mobility, and America's accelerating demand for flexible, cost-efficient living solutions.' The firm is no stranger to the brand, having previously snapped up a multiproperty portfolio of WoodSpring Suites in 2023. Noble Managing Principal and Chief Investment Officer Ben Brunt said the acquisitions are part of the firm's bid to scale 'a high-margin, service-light platform that delivers brand-backed reliability without the burden of traditional leases.' Noble has a $6 billion portfolio in the U.S., including properties under multiple hotel companies' extended stay brands. The firm called its extended stay platform 'purpose-built for today's evolving economy.' Last year, the firm announced a $1 billion final close for its Noble Hospitality Fund V, a real estate fund focused on investments in select-service and extended stay hotels. In 2023, Noble acquired a 10-hotel portfolio of WoodSpring Suites properties across Florida, Georgia, South Carolina, Tennessee and Kentucky. At the time, the company said it had acquired 48 hotels in the select-service and extended stay spaces over the prior two years. 'It became clear, as we moved through the pandemic, that the [extended stay] segment of the hospitality business, specifically the economy and midscale segments, were the most resilient from an occupancy standpoint, and it has the potential, if properly run, to be the most profitable segment relative to gross operating profit margins,' Brunt told Hotel Dive in 2023. Noble has also built multiple properties under Marriott International's StudioRes extended stay brand, which launched in 2023. Select-service and extended stay hotels 'dominated' in terms of hotel transactions closed in the first quarter of 2025, according to JLL. The segment is poised for investment wins this year given its 'durable returns in a volatile market,' JLL reported earlier this year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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Hyatt launches upscale collection brand Unscripted by Hyatt
This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Hyatt Hotels launched Unscripted by Hyatt, an upscale collection brand under its Essentials portfolio intended to bolster continued rooms growth for the company, according to a Friday news release. Created to bring independent properties and small portfolios under Hyatt's Essentials portfolio, Unscripted by Hyatt offers 'a light-touch operating model and flexible brand standards,' according to Hyatt. Hotels associated with the brand will be able to maintain their identity and positioning while leveraging the World of Hyatt loyalty program, which has more than 56 million members. The brand launch comes after Hyatt reported significant rooms growth at the end of the first quarter of 2025, with strong momentum in its Essentials portfolio, also including brands like Hyatt Studios and Caption by Hyatt, as well as its Luxury and Lifestyle portfolios. Hyatt has recently leaned on brand acquisition and partnership as a means to scale. Unscripted by Hyatt 'fills a key white space in Hyatt's portfolio and is designed to unlock growth through adaptive reuse and conversion-friendly opportunities,' according to the company. Currently, Hyatt is in talks with more than 40 hotels globally to join the new brand. 'The Unscripted by Hyatt brand gives owners a flexible path to join the Hyatt system while still delivering the high-quality, dependable experience guests expect from Hyatt,' Dan Hansen, head of Americas development at Hyatt, said in a statement, calling the brand a win-win for both Hyatt and owners. Owners who join Unscripted by Hyatt will benefit from the hotel company's broader loyalty and distribution capabilities. Hyatt, meanwhile, widens its guest and customer reach, per Hansen. Hyatt's focus on its Essentials portfolio is part of its 'insights-led evolution to deepen and enrich experiences for guests and owners,' according to the company. Overall system growth is a top priority for Hyatt, which in Q1 posted 10.5% year-over-year net rooms growth. Hyatt sees momentum in its Essentials, Lifestyle and Luxury portfolios as well as strong branded residential demand, according to the Friday release. Particularly in the lifestyle space, Hyatt has leaned on brand acquisitions to quickly grow portfolio scale. Last year, Hyatt acquired lifestyle hotel operator Standard International. And over the past two years, Hyatt has purchased Dream Hotel Group, Mr & Mrs Smith and German brand Me and All Hotels. Marriott International has also inked multiple brand deals in recent years, including its April CitizenM buy. Earlier this month, Marriott also launched a collection brand, Series by Marriott, in the midscale and upscale segments. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
