Ayelet Weinstein, CEO and founder of B Hotels & Resorts, shares three tips for selecting the right brand. “Developers and owners need to explore all of their options and look at the whole package. People tend to think there is a safety net when it comes to traditional brands. They think big brands will help get a partner, lenders, or a share in the market. But big brands are only one of the considerations,” she says. “Selecting the right brand is a journey and it’s not a one-size-fits-all situation.”
Understand the market and competitors.
“What are the existing options? Are there too many boutique hotels, too many from the same brand family? Look for a niche in the market that is not crowded. Many markets are over saturated and you need to understand who you are going to compete with, in and outside of the brand family.”
Familiarize yourself with the audience in that specific destination.
“Evaluate who is coming to this destination and for what purpose. What kind of experience does a guest look for in that city? There are markets that are transient in nature, with distinct personality, so much so that even on a business visit, guests plan to explore and enjoy the destination.”
Evaluate the whole financial package.
“Identify and take into consideration the initial costs, on-going requirements, and marketing costs for a brand. This is in addition to operation margins, reservation fees associated with OTAs and brand.com, loyalty program fees and costs, how and when you plan to exit, and who this hotel will attract at exit time. There is much to consider.”
100% agreed with you Ayelet, finding a niche in an uncrowded market is, to me, a “natural USP”. In a world with unlimited choice, it is (in my opinion) far better to focus on that niche rather than try and cater to the needs of everyone.