Special RepoRt : Soft brandS
Ascend Hotel Collection in November added the Hotel North Woods in Lake Placid , New York .
Soft brand members are also buying clout . The big brands negotiate better fee structures with OTAs and provide purchasing efficiencies . As a result of all the benefits , Robinson says the Autograph continues to grow by 20 % to 25 % a year with no end in sight . And , perhaps , therein lies the rub .
Will collections like Autograph , Ascend , Curio and the like become diluted and lose the affection of independently minded travelers , or will their strong pipes continue to deliver the nights the brandaverse owners and operators require to survive in an increasingly complicated distribution landscape ?
“ If the global brand complexes want to grow their soft brands significantly , they ’ ll lose their differentiating characteristics ,” states Shah , who offers an informed and unique perspective because his portfolio includes properties operating as strict independents , some under Autograph , Curio and traditional consortium like The Leading Hotels of the World , as well as Hersha ’ s own Independent Collection . “ So far , the likes of Autograph and Curio have been very selective and there hasn ’ t been this excessive focus on unit growth . They are seeking out owners and operators that are hoteliers and not just institutions , and I just hope it stays that way . I get concerned with them trying to get into lots of markets [ around the U . S .] because a lot of markets probably aren ’ t great fits .”
Easing Shah ’ s concern is Claus Sedlinger , who says his Berlin-based Design Hotels brand ( of which Starwood has been a majority but passive investor ) is very selective . “ We get more than 300 applications every year and we are maybe taking five ,” he says . “ For the last 10 years we were growing 18 to 20 hotels per year .”
What sets Design Hotels apart ,
Sedlinger believes , is criteria to attract a likeminded group of customers as part of its selection process . “ It unites the owners and why we call them ‘ originals ,’ ” he says . Another question surrounds impact . Will hard-branded hotels start to question their higher fees when one of their brand ’ s collection hotels is nearby and potentially cannibalizes the revenue stream ? Indirectly , Robinson says Autograph has lost but three hotels during its first five years .
What , where next ? So as soft brands start to mature , how does the story evolve ? Naturally , by creating new slices to the collection pie . Most of the soft brands play in the upper-upscale and luxury spaces , so why not create 3-star and 3-star-plus soft brands , as for the moment Choice ’ s Ascend Hotel Collection ( already with about 150 open and another 20 to 30 in its pipeline ) has most of that space to
www . hotelsmag . com January / February 2016 HOTELS 23