TOP TIPS FOR
NEW HOTEL
BRANDS
ENTERING THE
US MARKET
By Gosia Kosturek
As travelers are becoming more
particular about their vacations and
especially the hotels that they visit,
hotel companies have been rushing to
develop brands that provide distinctive
experiences for even the most discerning
traveler from dog friendly amenities
to sustainability focused properties.
Companies bringing these new hotel
brands into the US market include
established U.S. and international
hotel companies and start-up brands
entering the hospitality market. These
companies are tailoring their vision for
a hotel much more finely than their
hospitality predecessors which results in
unique considerations for both the brand
66 ILHA
(whether managed or franchised) and the
developer.
JOINT VISION/MOTIVATED
PARTIES – A new brand entering
the U.S. has to show that it is fulfilling
a niche in the market that has not
already been captured. Therefore, in
developing its first few hotel projects,
finding the right location and developer
are paramount. The brand needs to
be certain that a developer will be (i)
able to source a site that optimizes the
brand strategy while offering significant
visibility of the new brand to the market,
(ii) able to complete the project on
time and within their budget (to ensure
the project is completed), and (iii)
committed to the brand vision so that
they will be equally focused on building
to brand standards. But this requires
quite a balancing act. For example,
opening a flagship property in New York
City under the new brand may provide
great visibility but such a location comes
with big city challenges such as union
relations, greater regulation, greater cost
to develop, and potentially longer lead
times to open. From the developer’s
perspective, it needs to make sure that
the company behind the brand has the
resources to support and grow the vision
for the new brand and the financial
commitment to overcome inevitable