PHOENIX—Going the dual-branded route has its advantages, but it’s not something anyone should jump into without first understanding all of the preparation necessary, according to sources. As the concept has matured, hoteliers are figuring out what combinations work best for their target guests and their bottom lines.
During the breakout session “Dual-branded hotels” on Day Two of The Lodging Conference, a panel of executives discussed the advantages and challenges to overcome when pursuing a dual-branded project.
Dual-branding basics
There are areas where hotel brands can be combined and work together properly, said Greg Portman, the founding principal of PFVS Architecture. One of the main things to keep in mind when pursuing a dual-branded property is maintaining brand integrity, he said, and picking a project where
guest profiles are similar, such as a Residence Inn and a Courtyard by Marriott.
“Marriott kind of led the way with their understanding” of these pairings, he said.
Pairing a select-service brand with an extended-stay product seems to be the best combination, he said. Fifteen to 20 years ago, the concept was going with full service and then adding more suites to act as the extended-stay option, he added.
Some things in life are meant to go together, and some are best left alone, said Tye Turman, senior VP of lodging development for Marriott International. The same goes for determining which brands will work with each other when dual branding.
“It takes a conscientious effort … to be cookies and milk,” he said. “You don’t want to be toothpaste and orange juice.”
When discussing a dual-branded project, Turman said, there are two approaches his company takes: linked and blended. A linked project is two products that are somehow connected, but the components they share are limited, such as a parking lot, the back-of-house operations, an exercise room or a swimming pool.
“Blended is a project that’s a little bit more,” he said. “It’s a little bit more integrated. They may have shared breakfast components, one front desk, only one staff running both hotels. It’s much more combined.”
Navigating two brands
Having a dual-branded property seems a promising way to increase revenue from essentially one building while seeing savings from the potential efficiencies—e.g., a shared GM, kitchen, front desk or any other staffing or service that doesn’t require duplication. At the same time, a dual-branded hotel presents challenges unique to this style of property.
When designing the hotel, how the lobby will cooperate between the two brands depending on the model being used is a concern, according to Mike Patel, CEO and chairman of NewcrestImage Management. Likewise, what about the hub, the staff entrance, the staff itself and how the GM, or GMs, will run the hotel? If the properties have a meeting space and one kitchen, that kitchen would need to serve both properties and have banquet capabilities, he said.
“You have to really think how you’re going to run the hotel,” Patel said.
Any hotelier considering going the dual-brand route needs to do his or her due diligence, said Michael Morton, VP of owner relations for Best Western Hotels & Resorts. It’s tempting to go for dual-branded hotels because there’s potentially dual marketing for the property and operating efficiencies, but he said there’s more to it than that.
Understand what the brand is going to require for the property, he said. The brand might say the hotel needs two GMs, he said. The brand might say the hotel can’t share breakfasts because one is paid for and the other is complimentary.
“It’s a truly unique project,” Morton said. “It needs to be understood what the brands are going to allow you to do so it make sense from a brand standpoint and also for the customer.”
Solving the breakfast problem
As Morton alluded to in his comments, a recurring issue for dual-branded hotels is how breakfast is handled for two properties where one brand serves a complimentary meal while the other is paid for. The panelists discussed several approaches.
From an architectural perspective, Portman said hoteliers can develop hotels designed so that a guest doesn’t feel excluded from an area that guests of the other brand have access to. One way is to put the exclusive area on another level, he said. Doing so means the guest never has to interact with the functions that go on there.
At his properties that have both a free and charged breakfast, Patel said they keep it open, knowing that guests from one might try to make their way into the free breakfast in the other brand. It might cost a bit more by serving more free breakfast, he said, but it would cost more to police the area trying to catch people sneaking in. The guests are spending money on the property, and it balances out, he said.
If a dual-branded hotel is going to have two breakfast areas where one is free and the other isn’t, Turman advised keeping the two as far away from each other as possible. There will be people who go to the free breakfast regardless of the policing, he said. If both properties offer free breakfasts, he said, go with the highest food offering of the two brands.
“Is there an added cost? Yes, but we think it’s the right thing to do,” he said. “It allows the owners the efficiencies they’re looking for in construction and the day-to-day costs.”