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Introduction
Hotel branding
The branding of the hotel investment projects is an instrument in
both yield management and improvement of the strategic position of
a hotel. The right brand with an effective guest distribution system
and a relevant positioning in the market, can positively effect the
business mix, room rate and the occupancy. Apart from that, the use
of the right brand improves the quality perception of the offering
for guests in general.
As large international brand companies with associated management
companies and real estate investors are likely exit candidates, it
is required that the fund will have flexible franchise contracts,
allowing the fund to exit without any strings attached.
The fund has discussed its branding requirements and preferences
regarding contracts with several brand franchise companies and
has found interest to work with the fund in the required flexible
manner. The fund will select the brand to work with on a case by
case basis. The key selection criteria are the fit between the
brand and the location of the hotel and the strategic direction
the fund has chosen for its investment. On top of that, the franchise
organisation has to add value in terms of additional revenue and
the fee structure should reflect this. HVS will support the fund
in the selection process. Branding is a key instrument in increasing
revenues. The fund has a network of franchise partners to select
from and with which it can arrange contracts with flexibility at
the exit.
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