Luxury Hoteliers Magazine 1st Quarter 2018 | Page 66

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