JULY 2018 BITCOIN & BLOCKCHAIN WHAT HOTELIERS NEED TO KNOW ABOUT CELEBRATING CRYPTOCURRENCY INDEPENDENCE CLOSE THE POWER OF TO HOME UNBRANDED HOW HOTELS 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 hotel 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: Autograph Collection, minimum application fee Ascend Hotel Collection is a membership of upscale, Curio 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, Best Western 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 Hyatt 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.