Special RepoRt : Soft brandS
Are enough ?
When Marriott International ’ s Julius Robinson talks about growth of the now five-year-old Autograph Collection , he says members tell him that “ it ’ s all about the pipes .” The vice president of the brand with more than 100 hotels open says he is able to recruit staunch independents and even lure new-build developers simply because of the distribution he can more or less guarantee .
“ They ’ re buying the 50 million Marriott Rewards members . They are buying Marriott ’ s distribution prowess ,” Robinson says matter-of-factly . The results shown by Marriott and some of its soft brand competitors : extending shoulder seasons , added weekday contribution and more group business . For Marriott , Autograph delivers the third highest ADR in the system , which its independent members cannot replicate . as soft brands mature , do they run the risk of becoming homogenized , or do they find new approaches ?
By Jeff Weinstein , editor in chief
The average cost for this business , Robinson says , is from 9 % to 10.5 % of revenue , which Hersha Hospitality Trust President and COO Neil Shah says is very similar to branded hotel fees . “ They might be marginally less than a hard brand , but generally , Autograph and Hilton ’ s Curio , for example , are very similarly priced to any of the other brands in those families ,” Shah says . “ Where they ’ re very different , though , is that they allow a lot of flexibility . But we look at it more as a branded solution and not one we think is necessarily the best solution for institutional owners .”
Robinson counters by relaying stories from owners who say they are increasing the multiples on their real estate to the point where asset sales make the most sense . In fact , Robinson estimates that some 40 % of the Autograph portfolio has changed hands during the life of the brand . “ We took a look at 12 hotels over a three-year time period that they were in the Autograph Collection – none of them new-builds ,” Robinson says . “ RevPAR grew anywhere from 7 % to 32 %, with the median being about a 19.5 % increase in RevPAR over those three years .”
22 HOTELS January / February 2016 www . hotelsmag . com