JULY 2018

BITCOIN & BLOCKCHAIN WHAT HOTELIERS NEED TO KNOW ABOUT CELEBRATING CRYPTOCURRENCY INDEPENDENCE CLOSE THE POWER OF TO HOME UNBRANDED HOW PROPERTIES BENEFIT FROM PROVIDING EMPLOYEE HOUSING

PAYROLL 20 PRESSURE RISING LABOR- SOFT BRANDS RELATED COSTS WITH RAPIDLY GROWING PORTFOLIOS

JIM MERKEL CEO, ROCKBRIDGE

LODGING MAGAZINE @LODGINGMAGAZINE GOING SOLO Why a branded property might drop its flag

Not every independent was born more important than the brand,” Van that way. There are many, many inde- Ness says. “When you look back to when pendent properties out there that started brands were introduced in the hotel industry, it was about safety, security, their lives as branded hotels. After all, and cleanliness. But the internet has franchise agreements, while they can be changed all of that. We have review sites, lengthy, do eventually end. When they we have the ability to check things out do, hoteliers are faced with a choice— on our own, and that’s giving consumers pursue another brand, or go solo. confidence to stay at these properties that otherwise would be unknown entities.” Despite the segment’s current Bob Van Ness, executive vice pres- strength, going independent isn’t a ident for the Americas at Preferred decision that should be taken lightly. Hotels & Resorts, has seen his fair share Hoteliers must assess their desire to of “deflaggings.” In fact, Preferred has be independent against other factors, welcomed more than 30 deflagged ho- such as if their market can support an tels into its portfolio over the past four independent property like a branded years. Van Ness says that independence one. They should also consider whether NoMo SoHo has become very appealing to hoteliers they have enough hospitality experience with a creative bent who want to create to run a property without the support relationships with vendors, but if you’re a hospitality experience outside the of a brand. Van Ness says that hoteliers looking for someone new, you should do constraints of a brand. “Many entrepre- going independent for the first time some research before making a deci- neurs are interested in the independent may want to consider working with a sion,” Van Ness says. market because it gives them a chance to management company to ensure that According to Van Ness, accountability be creative and operate the property to operations run smoothly, at least initial- is the biggest change when deflagging. their liking with fewer restrictions. They ly. “There are so many decisions to be Owners may not have considered have control.” made without brand standards. This in- various operations that brands were He adds that independent hotels are volves being more involved and engaged completing for them. For some, this currently experiencing strong perfor- in the business. You can’t be an absentee rebuilding and customization is exciting; mance because people are looking for owner with an independent hotel,” he for others, it’s the biggest challenge. This independent, unique experiences. “I notes. “Hoteliers also need to figure out is why many hotels that go independent think those experiences have become what exactly they want to create, how to may partner with a collection or soft manage business levels, brand. “Companies like Preferred help and establish the hotel’s hoteliers think through the process and identity. With a brand, contemplate decisions they might not that identity is created have considered when going into the for you.” process. With help, these properties Another piece of can hit the ground running and position the puzzle that newly themselves to be as effective and as prof- independent hotels may itable as possible after a major change.” not have considered is Beyond increased flexibility and con- choosing vendors. “With trol, the benefits of deflagging can also a brand, the vendors are include a boost in profitability. Owners pre-vetted. When you’re can develop the culture of their hotels on your own, you need and determine who their target custom- to do a straightforward ers will be based on their knowledge assessment of the quality of an area. By catering directly to the of each vendor that you customers that a specific neighborhood partner with. Granted, if attracts, independent hoteliers have lots Ambassador Chicago you’re deflagging, you’ll of opportunities to grow revenue and likely have ongoing improve profitability.

38 LODGINGMAGAZINE.COM JULY 2018 GUIDE TO SOFT BRANDS

THE BRANDS GENERAL INFORMATION FEES

ASCEND HOTEL COLLECTION l Brand Launched: 2008 l Initial: $375/room; $40,000 l Competitive Set: , minimum application fee Ascend Hotel Collection is a membership of upscale, Collection, Tapestry Collection, l Royalty: 5% GRR independent hotels designed for travelers pursuing distinct Tribute Portfolio, The Unbound Collection, l System: 2.5% GRR experiences in unforgettable surroundings. Ideal for Independent Hotels owners seeking freedom and control over their property’s l Target Customer: Travelers pursuing operations and design, Ascend delivers increased distinct experiences in unforgettable exposure and reservation potential with support from surroundings innovative global lodging leader Choice Hotels. l U.S. Properties/Number of Rooms: 163/13,239 PROPERTY PICTURED: l In the Global Pipeline: 51 Hotel Petaluma, Petaluma, Calif.

AUTOGRAPH COLLECTION l Brand Launched: 2009 l Application: $75,000 l Competitive Set: Preferred Hotels & or $300 per guestroom Each Autograph hotel is “exactly like nothing else,” offering Resorts, Leading Hotels of the World, Curio (whichever is greater) a multitude of unique stories, authentic experiences, and Collection by Hilton, Kimpton l Franchise/Royalty: 5% great design. Launched in 2009, the soft brand includes l Target Customer: The individualist—Guests GRS 80 U.S. properties with 18,562 total rooms. As the brand’s who forge their own path, fiercely shunning l Marketing: 1.5% GRS global roster grows, Marriott has started to categorize convention and rejecting the predictable. each hotel by experience (sporting adventure, natural They see travel as an opportunity to break retreat, historic exploration, etc.), as well as location. from routine and open the mind. l U.S. Properties/Number of Rooms: PROPERTY PICTURED: 80/18,562 The Envoy Hotel, Boston, Mass. l In the Global Pipeline: 83

BW PREMIER COLLECTION l Brand Launched: Late 2015 l Application: $4,000 l Competitive Set: Moxy, Autograph l First Year: $25,000 for up In late 2015, announced its first soft brand Collection, Luxury Collection, Preferred to 200 rooms offering, the BW Premier Collection. Hotels within the Hotel Group, Hotels of the World, Tapestry l Annual Fee: $25,000. BW Premier Collection will not be part of the official Best Collection Only charged to hotels that Western membership, but will be listed and can be booked l Target Customer: Guests seeking unique execute an agreement under on the Best Western website. Guests are able to earn and and local hotel experiences around the world the percentage of net room redeem Best Western Rewards points at all BW Premier l U.S. Properties/Number of Rooms: revenue delivered through Collection hotels. 22 / 7,143 Best Western reservation l In the Global Pipeline: 25 systems. PROPERTY PICTURED: l Reservation Fee: The Florida Hotel & Conference Center, Orlando, Fla. Varies depending upon the individual hotel

BW SIGNATURE COLLECTION l Brand Launched: Late 2017 l Application: $4,000. l Competitive Set: Ascend Collection, TRYP l Initial: $25,000. Best Western’s third soft brand, BW Signature Collection, by Wyndham, Trademark Hotel Collection l Royalty: 5% monthly GRR offers a soft brand option for upper-midscale hotels. The l Target Customer: Guests seeking a unique (includes sales, marketing, first two hotels to join the BW Signature Collection were and memorable stay at an outstanding value and technology fees) the Killington Mountain Lodge in Killington, Vt. (pictured), l U.S. Properties/Number of Rooms: and Brooklyn Way Hotel in Brooklyn, N.Y. Once on board, 2/201 hotels in the BW Signature Collection have access to Best l In the Global Pipeline: 8 Western’s revenue management systems, tradeshow and sales support, marketing programs, loyalty program, global reservation system, and more.

PROPERTY PICTURED: Killington Mountain Lodge, Killington, Vt.

COMBINED, THE 20 SOFT BRANDS IN THIS GUIDE HAVE MORE THAN 867 PROPERTIES IN THE 867+ GLOBAL PIPELINE. 867+ JULY 2018 LODGINGMAGAZINE.COM 41 GUIDE TO SOFT BRANDS

THE BRANDS GENERAL INFORMATION FEES

CURIO COLLECTION BY HILTON l Brand Launched: 2014 l Application: $75,000, plus l Competitive Set: Tribute Portfolio, $400 for each additional Launched in June 2014, Curio Collection by Hilton is an Autograph Collection by Marriott, Unbound guestroom over 250 upper-upscale, global portfolio of more than 50 one-of- by l PIP: Case-by-case basis a-kind hotels and resorts handpicked for their unique l Target Customer: Travelers seeking l Initial: $75,000 character. Curio Collection properties appeal to travelers one-of-a-kind discoveries and authentic l Royalty: 5% monthly GRS seeking unexpected and authentic experiences, and offers experiences l Marketing: Part of access to Hilton’s award-winning guest loyalty program, l U.S. Properties/Number of Rooms: franchise fee Hilton Honors. 32/8,569 l Reservation: Fee % varies l In the Global Pipeline: 68 by distribution program PROPERTY PICTURED: LondonHouse Chicago, Chicago, Ill.

HISTORIC HOTELS OF AMERICA l Brand Launched: 1989 l Application: $500 l Competitive Set: None—Historic Hotels of l Initial: $4,500 Founded in 1989 by the National Trust for Historic America is the only official program of the l Annual Royalty: $8,500 Preservation, Historic Hotels of America recognizes and National Trust for Historic Preservation for l Annual Marketing: $8,500 celebrates historical properties in the United States with recognizing and celebrating historic hotels l Reservation: 12% bookings properties that have faithfully maintained their authenticity, l Target Customer: Heritage and cultural l Membership/Quality sense of place, and architectural integrity. To be selected leisure travelers, from millennials to seniors Assurance: $750/year for membership, a hotel must be at least 50 years old, l U.S. Properties/Number of Rooms: been designated by the U.S. Secretary of the Interior as a 310/100,000 National Historic Landmark, or listed in or eligible for listing l In the U.S. Pipeline: More than 100 in the National Register of Historic Places.

PROPERTY PICTURED: The Omni Homestead Resort (1766) Hot Springs, Va.

IBC HOSPITALITY l Brand Launched: 2008 l Not disclosed. Visit l Target Customer: Independent hoteliers www.ibchospitality.com The InnDependent Boutique Collection, or IBC, is currently as well as business and leisure travelers for more information. one of the largest independent global hotel networks. IBC seeking local lodging and authentic hoteliers enjoy a technology platform with distribution experiences on a global scale and brand-like benefits that enable independent hotels to l U.S. Properties: 1,200 reclaim their revenue and guest data by providing a “one- stop shop” with a suite of hotel services and software, the InnCentives guest loyalty program, a preferred partner network, and more. Guests can shop globally for independent and soft brand hotels with add-on activities, cars, and cancellation protection.

PROPERTY PICTURED: The Edgewater, Madison, Wisc.

INTERCONTINENTAL l Brand Launched: 2010 l Not disclosed ALLIANCE RESORTS l Competitive Set: Fairmont, Grand Hyatt, JW Marriott, Westin, IHG launched InterContinental Alliance Resorts in 2010 l Target Customer: Business and leisure when it signed an agreement with the Las Vegas Sands travelers Corp. under which IHG would provide access to its l U.S. Properties/Number of Rooms: marketing programs and distribution channels to the Sands’ 2/7,092 two mega-resorts: The Venetian and The Palazzo. High on the list of those marketing programs was IHG’s loyalty program—now known as IHG Rewards Club—which allows Sands guests to earn and redeem points for their stays.

PROPERTY PICTURED: The Venetian, Las Vegas, Nev.

L.E. HOTELS & THE LUXE l Brand Launched: 1999 l Initial: $3,500 COLLECTION l Competitive Set: Preferred Hotels & l Reservation, Sales & Resorts, Leading Hotels of the World, Design Marketing: Starts at $40/ L.E. Hotels has independently owned and operated Hotels, Small Luxury Hotels of the World room/month. Includes all properties throughout the world. Hotels in the collection l Target Customer: Leisure, corporate, reservations fees except benefit from reservations and marketing services and group travelers; travel agents, group/ voice. designed to increase visibility and sales. L.E. Hotels event/meeting planners, and corporate recently introduced the Luxe Collection to single out hotels travel teams; and independent boutique that are highly ranked by guests for quality of service. and lifestyle hoteliers in the upscale, upper- The brand is rapidly growing its portfolio, with 67 total upscale, and luxury segments properties in the global pipeline. l U.S. Properties/Number of Rooms: 25/4,271 PROPERTY PICTURED: l In the Global Pipeline: 46 Lotte New York Palace Hotel, New York, N.Y.

42 LODGINGMAGAZINE.COM JULY 2018 GENERAL INFORMATION FEES

THE LEADING HOTELS l Brand Launched: 1928 l Not disclosed OF THE WORLD l Competitive Set: Independent, luxury collection hotel brands In business since 1928, Leading Hotels of the World today l Target Customer: Curious travelers and represents more than 375 properties across 75 countries. frequent luxury travelers The Leaders Club loyalty program provides guests with a l U.S. Properties/Number of Rooms: range of benefits from room upgrades and the opportunity 38/10,100+ to earn free nights to airport transfers and daily breakfasts. l In the Global Pipeline: Approximately 20 Leading Hotels of the World has approximately 20 hotels in the global pipeline.

PROPERTY PICTURED: JK Place Capri, Capri, Italy

THE LUXURY COLLECTION l Brand Launched: 1994 l Application: $85,000 plus l Competitive Set: Leading Hotels of the $300/room in excess of 200 Founded in 1994 and now under the Marriott umbrella, the World, Rosewood, Curio, Waldorf Astoria rooms Luxury Collection has 106 properties around the world. l Target Customer: Global Explorers & l Franchise/Royalty: Though the collection has only been around for a little more Collectors—adventurous, sophisticated, and 5% GRS than 20 years, many of the Luxury Collection properties charismatic travelers receptive to new and l Marketing: 1% GRS are more than a century old, bringing an authenticity to unknown experiences. They prefer first- (capped at $450k/year) guests’ stays. The carefully curated brand is growing at person recommendations and self-directed a sustainable pace, with 25 properties in its global pipeline. exploring over traditional tourist routes. l U.S. Properties/Number of Rooms: PROPERTY PICTURED: Hotel Marqués De Riscal, 17/4,977 Álava, Spain l In the Global Pipeline: 25

BY MAGNUSON WORLDWIDE l Brand Launched: 2018 l 2.5% GRR plus set-up fee l Competitive Set: Midscale to upper- Founded in 2003, Magnuson Hotels has become one of the midscale fastest-growing hotel brands, marketing more than 1,000 l Target Customer: All-inclusive leisure and hotels across six countries and three continents. The By corporate travelers seeking modern and Magnuson collection allows a property to keep its original clean facilities in the economy market name but reap expanded benefits from association with l U.S. Properties/Number of Rooms: the Magnuson Brand. All Magnuson Hotels are individually 1,048/99,007 owned and operated, and aim to create a welcoming and l In the Global Pipeline: 246 personal guest experience at great value.

PROPERTY PICTURED: Great National Abbey Court Hotel & Spa, Nenagh, Ireland.

WHAT IS THE ROLE OF HOW DO YOU ENSURE ALL OF THE SOCIAL MEDIA IN THE HOTELS IN YOUR SOFT BRAND SOFT BRAND SEGMENT? COLLECTION FORM A COHESIVE UNIT?

“Our key social audience “Hotel owners with “All of the nearly 70 includes independent properties that sit Trademark Collection by travelers in search between the upscale and Wyndham hotels around of original and local luxury space seeking the world have 3 staples: experiences. By sharing to join a soft brand character, charm, user-generated content collection will find that and individuality. By at our hotels through our own social it offers them the ability to access Hilton, bolstering our collection in destinations channels, we can evangelize our core while allowing their hotels to maintain with signature style and partnering with brand message and personality through their independent spirit, thanks to more like-minded entrepreneurial hoteliers their experiences in an authentic way.” flexible standards than a traditional passionate about upholding their hotels' brand.” charm, we’re preserving the integrity of JENNA HACKETT Trademark’s originality.” Global Head MARK NOGAL Tapestry Collection by Hilton Global Head GREG GIORDANO Curio Collection by Hilton Vice President, Brand Operations Trademark Collection by Wyndham

JULY 2018 LODGINGMAGAZINE.COM 43 GUIDE TO SOFT BRANDS

THE BRANDS GENERAL INFORMATION FEES

PREFERRED HOTELS & l Brand Launched: 1968 l Implementation: $100/ RESORTS l Competitive Set: Leading Hotels of the room World, The Luxury Collection, Autograph l Membership: $200-$350/ Lanched 50 years ago, Preferred Hotels & Resorts Collection room annually provides marketing and distribution support to 700 luxury l Target Customer: High-end transient l Marketing: $15,000- hotels and resorts around the world. Hotel members leisure, corporate, association, and group $20,000 annually are aligned with one of six distinct collections—Legend, segments who seek a one-of-a-kind hotel l Reservations: Varies by LVX, Lifestyle, Connect, and Preferred Residences. In experience that delivers the authenticity of channel the United States, the portfolio ranges from The Montage a destination l PIPs: None Beverly Hills to The Sherry Netherland in New York. l U.S. Properties/Number of Rooms: 232/57,329 PROPERTY PICTURED: l In the Global Pipeline: 90+ ARC The.Hotel, Washington, D.C.

THE RED COLLECTION l Brand Launched: 2017 l Application: $5,000 l Competitive Set: Autograph Collection, l Initial: $30,000 In September of last year, Red Roof launched the Curio Collection by Hilton, Tribute Portfolio, l Royalty: 4% company’s first soft brand, The Red Collection. Red Roof BW Premier Collection l Marketing/Res: 4% is looking to curate a portfolio of upscale-economy to l Target Customer: Travelers looking l RediCard Member midscale hotels that are hyper-local and draw inspiration for modern, accessible and affordable Program: 4% from the vibe and culture of the city centers in which they properties with enhanced amenities in the l Estimated Investment are located. The first Red Collection hotel will be the St. hearts of cities they love, prime locations Range: $736,600 - Clair Hotel in Chicago, due to open later this year. near the things they love to do. $1,722,000 l U.S. Properties/Number of Rooms: 2 PROPERTY PICTURED: properties/200+ rooms in the pipeline The St. Clair Hotel, Chicago, Ill.

SMALL LUXURY HOTELS l Brand Launched: 1990 l Not disclosed OF THE WORLD l Competitive Set: Leading Hotels of the World, Relais & Chateaux, , Founded in 1990, Small Luxury Hotels of the World Preferred Hotels & Resorts represents more than 500 hotels worldwide in 82 l Target Customer: Modern luxury travelers countries. The portfolio ranges from hotels and resorts l U.S. Properties/Number of Rooms: to country house hotels targeting affluent travelers. The 19/1,505 brand’s INVITED loyalty program, which relaunched in 2017, offers travelers more perks when they book with SLH.

PROPERTY PICTURED: 7 Secrets Resort, Lombok, Indonesia

SURESTAY COLLECTION l Brand Launched: 2017 l Application: $2,500 l Competitive Set: The Red Collection, l Initial: $35,000 One of several brands introduced by Best Western in the independent economy hotels l Royalty: 3% GRR last several years, SureStay was originally intended to be l Target Customer: Today’s value traveler l Sales/Marketing: 5% GRR a white-label franchise separate from its parent company. seeking a unique stay and experience Instead, SureStay became a part of Best Western and l U.S. Properties/Number of Rooms: encompasses three sub-brands, including the SureStay 2/280 Collection soft brand. SureStay hotels are not subject l In the Global Pipeline: 8 to PIPs, are free to use preferred vendors, and have a competitive fee structure.

PROPERTY PICTURED: Genetti Hotel, Williamsport, Pa.

TAPESTRY COLLECTION l Brand Launched: 2017 l Application: $75,000 plus BY HILTON l Competitive Set: Independent hotels, $400 for each additional Tribute Portfolio, Ascend Hotel Collection guestroom over 250 As Hilton’s 14th brand and second collection brand, l Target Customer: Travelers seeking value, l PIP: Case-by-case basis Tapestry Collection by Hilton is a portfolio of unique, comfort and familiarity in their independent l Initial: $75,000 upscale hotels that caters to guests seeking value in their upscale hotel choices l Royalty: 5% GRR independent hotel choices. Each Tapestry Collection by l U.S. Properties/Number of Rooms: l Marketing: Part of Hilton hotel maintains its individual spirit, while also being 6/729 franchise fee backed by the reassurance of the Hilton name and award- l In the Global Pipeline: 32 l Reservation: Fee % varies winning Hilton Honors program. by distribution program PROPERTY PICTURED: The Graham, Washington, D.C.

44 LODGINGMAGAZINE.COM JULY 2018 GENERAL INFORMATION FEES

TRADEMARK COLLECTION l Brand Launched: 2017 l Hotels will contribute a BY WYNDHAM l Competitive Set: Trademark is a unique percentage of GRR to soft brand targeting upper-midscale and combined fees (6.5% total) Launched in June of last year at the NYU International above independent hotels. following an initial Hospitality Industry Investment Conference, Wyndham’s l Target Customer: Trademark is designed affiliation fee. Trademark Hotel Collection is the first soft brand targeted for the everyday traveler seeking truly at upper-midscale and above properties. The brand’s unique hotel experiences—outside of the portfolio already includes more than 65 hotels with 45 luxury options currently available to them— more in the pipeline. Trademark Hotel Collection has that allow them to experience the destination recruited both new-build properties and existing hotels to on their terms. its portfolio. l U.S. Properties/Number of Rooms: 15/3,413 PROPERTY PICTURED: l In the Global Pipeline: 45 Ravel Hotel, Queens, N.Y.

TRIBUTE PORTFOLIO l Brand Launched: 2015 l Application: $50,000 plus l Competitive Set: Curio, Leading Hotels $200/room in excess of 250 Tribute Portfolio hotels create an experience that is all of the World, Preferred Hotels & Resorts, rooms about the guest. Established by Hotels & Independent Hotels l Franchise/Royalty: Resorts and now owned by Marriott, this soft brand l Target Customer: Modern mavericks— 5% GRS allows for distinct hotels in noteworthy locations. These independent travelers who seek boutique l Marketing: Included independently owned hotels maintain their personality hotels as a deliberate rejection of the in program fee (hotels while accessing the benefits of the Starwood Preferred mundane and consistent experiences pay a program services Guest loyalty program. Every Tribute Portfolio hotel thrives offered by chain hotels contribution of 3.5% GRR, on style and superior service and celebrates individuality. l U.S. Properties/Number of Rooms: which covers marketing, 16/4,789 sales, reservations, and PROPERTY PICTURED: Apollo Hotel Amsterdam, l In the Global Pipeline: 18 other centralized services Amsterdam, Netherlands for the hotel)

THE UNBOUND COLLECTION l Brand Launched: 2016 l Not disclosed BY HYATT l Competitive Set: Autograph Collection,The Luxury Collection, Curio Collection, Tribute The Unbound Collection by Hyatt aims to give guests the Portfolio freedom to be extraordinary at unique properties all over l Target Customer: Independent-minded the world. Launched in 2016, the collection already has leisure travelers several properties in its global and domestic portfolio, l U.S. Properties/Number of Rooms: including the Royal Palms Resort and Spa in Pheonix, 6/1,349 Arizona, the Driskill Hotel in Austin, Texas, and the Hôtel du Louvre in Paris, France.

PROPERTY PICTURED: Spirit Ridge, Osoyoos, British Columbia, Canada

WHAT’S NEXT FOR SOFT BRANDS?

“We found that travelers “Soft brands used to “We see continued are looking for soft focus on traditional expansion in the soft brands that offer easily sales, reservation brand market as accessible hotels in services, and email evidenced by the number the hearts of popular newsletters. Today’s of legacy franchise cities. This demand gives hotels need and expect brands that have brands and franchisees the opportunity more. Soft brands must act as a central adapted their model for more independent to diversify their offerings and develop hub for distributing information—social hotels. The advent of new technology alternative business opportunities for media, photo and video content, and has changed the playing field for hotels, grown in high-demand locations. Many sophisticated digital marketing—while making the traditional brands increasingly franchisees will enter center-city markets developing influencer relationships. Soft less relevant. Travelers continue to seek for the first time through soft brands.” brands that succeed tell narratives that more authentic and singular experiences.” invite member hotels, professionals, and PHIL HUGH JONATHAN NEWBURY Chief Development Officer guests to participate.” Senior Vice President, The Red Collection by Red Roof Strategic Development KERRY COOPER Preferred Hotels & Resorts Senior Vice President of Operations & Business Development The Luxe Collection by L.E. Hotels

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