HomeHotelHybridization of hotel models, the reason for this strategy

Hybridization of hotel models, the reason for this strategy

The birth and proliferation of hotel brands is a consequence of the need to win over more and more traveler segments, betting on specialization and differentiation. However, there are well-positioned chains in the market that also have third-party brands under their umbrella. Behind this hybridization, which years ago was unthinkable in Spain, there are commercial and expansion strategies. In it Hoteltrends Arena, organized by Hotelverse and Beon at Fitur 2024, Palladium Hotel Group, NH Hotel Group, Barceló Hotel Group and Fergus Group reflected on the matter.

NH Hotel Grouppart of Minor Hotels, currently has eight brands that range from the mid-segment to luxury, including lifestyle and disruptive proposals, but in some cases other brands also operate.

Fernando VivesCCO in NH Hotel Group, maintains that “for chains that we are asset heavy It is very difficult to think about using brands that are not our own”, but there are situations that warrant it: “to cover markets where I do not want to assume the risk of renting” and where the only way to add value is by resorting to other franchises.

“In Mexico City, at the airport, we have two hotels. One in terminal 2 for domestic flights, and another in terminal 1, which is the Hilton Airport and is a franchise. We could have changed the brand, but it made more sense for it to be Hilton, because international clients enter there with American Airlines or United,” he detailed. The thing is that Hilton’s brand recognition (among Americans) is not the same as that of Minor Hotels, which has 13 establishments open in the United States with its different brands.

In Fergus Groupsays Bernat Vicens, its CEO, “we believe that we can manage things that are not our own brands. The large chains have a very extensive commercial network, we are smaller and there are places where we do not reach. Maybe we can, but maybe it’s too expensive or too slow. A brand can give us the speed to be profitable sooner”.

More information

– Will the Spanish chains become white label operators?

– Ownership or operation: which model do hoteliers choose today?

– The value of hotel white brands in the post-COVID era

From left to right: Sergio Zertuche (Palladium Hotel Group), Bernat Vicens (Fergus Group), Sara Ramis (Barceló Hotel Group), Manuel Molina (HOSTELTUR) and Fernando Vives (NH Hotel Group). Source: Hosteltur.

The reverse case also occurs, because Fergus Group already manages assets of other hotel chains that have decided to give up their brand to achieve better results, as published by HOSTELTUR in Alianza between Piñero and Fergus: Tent Hotels will manage 2 of its hotels. “Bahia Principe is an excellent operator of large resorts in the Caribbean, but its effort rate for vertical hotels in Playa de Palma is not worth it,” which is why they have opted for the tent Hotels brand.

“I think there will be a lot of hybridization and a lot of use of third-party brands to try to be more relevant,” says Bernat Vicens.

In the words of Sergio ZertucheChief Sales & Marketing Officer at Palladium Hotel Groupthe hybridization of models “depends a lot on the company’s strategy, on whether you have a vocation as an owner, if you are a manager, if you rent or if you have a brand or the opportunity to operate an asset that does not fit with yours.”

Palladium Hotel Group was the company that brought the Hard Rock Hotels brand to Europe in 2014, because “we understood that what the Hard Rock brand exuded made a good click with the Ibiza destination. That’s why I think it depends on the case.” In this case, remember, there are three situations: Grupo Empresas Matutes is the owner of the asset, Hard Rock International is the owner of the brand and Palladium is the manager that operates the hotel.

“We in the United States have a white label manager (Crestline Hotels & Resorts) because the market is so mature that it made no sense to create other brands,” he explains. Sara RamisChief Client, Marketing & Sustainability Officer at Barceló Hotel Group, making it clear that “it is not so easy to take an American brand and implement it” and that these do not fit in all destinations.

Despite this, Barceló Hotel Group has its first hotel under a foreign brand in Europe in Madrid. In this case, the owner of the asset is an investment fund (HIP) and the establishment opened its doors in 2021 with the brand Canopy by Hilton. This franchise allows the hotel to access the more than 118 million members of the Hilton Honors loyalty program.

The latest example within the Spanish hotel market is the agreement between the manager Summum Hotel Group and Meliá Hotels International, from which two hotels from the first were integrated into the Meliá Collection brand portfolio. The thing is, as HOSTELTUR has published in Why are we seeing alliances between hotel chains?, the importance of global visibility, distribution and diversification of products and destinations are determining factors in these strategies.

More information

Palladium Hotel Group and Hard Rock create a new hotel complex in Ibiza

Alliance between Meliá and Summum Hotel: 500 rooms in 5 years

Barceló opens its first European hotel with a third-party brand in Madrid

Source: Hosteltur



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