Soft Brands – A Third Alternative
Historically, hotel owners have had the option to either affiliate with a known brand or operate independently. Affiliating with a brand provided access to a reservation system, loyal customers, communal marketing programs, a known identity among consumers, and a sense of stability within the finance and investment community. Brand affiliation, however, comes with costs. Owners pay a variety of fees for royalty, marketing, reservation, and guest loyalty programs, and need to conform to facility, service, and operating standards.
By Robert Mandelbaum and Paul Isaacson