One Hotel Structure – Two Brands
As of January 2015, there are 79 operational dual branded hotels in the US with another 54 currently under construction. Additionally, there are another 100 approved projects scheduled to open by the end of 2018.
Dual branded hotels, sometimes called “Two-Packs”, are single structure hotels housing two separate hotel flags typically under the same brand umbrella. Recently, we’ve noticed an increased trend in these types of properties as hotel franchises increasingly offer this 2-for-1 concept to more and more developers. Base4 is currently working on several dual branded properties and has seen the significant benefits of these types of properties. These benefits include:
- Shared Services – Sharing costly parking, utility infrastructure, receiving/trash, pool & fitness areas, meeting rooms, laundry, restaurants and engineering departments can save significant costs.
- Maximized Density – Locating two hotels on one parcel greatly increases the number of guestrooms per square foot of property which is important in areas where land is at a premium.
- Engagement Of A Broader Guest Profile – Providing both select service and extended stay accommodations allows owners to serve a large range of guestroom types and configurations.
- Reduced Operational Overhead – Utilizing housekeeping, maintenance, BOH/FOH staff and engineering for both flags allows more flexibility in allocating staff where needed.
- Lowered Risk – Catering to two different market segments with two different reservations systems allows owners to diversify their risk in one property.
- Elimination Of Competition – If owners feel there is a strong possibility another flag could compete with their hotel, they can include it with their property and move their competition “in-house”.
We are excited to be a part of this new trend and look forward to assisting our clients in the development of more of these types of properties in the market very soon. If you have any questions about the benefits or challenges with dual branded properties please contact our office.
Blair D. Hildahl
**Above statistics supplied by Kallenberger Jones & Co