Hotel Brand CEOs Say Value of Branding Lies in Consistency

At a period when many hoteliers are hyper-focused on preserving profits, many may be wondering whether the fees paid to brands are still ultimately worth it.

But CEOs speaking at the 2022 Americas Lodging Investment Summit said the value of hotel brand is alive and well.

"I think that brand is extremely important in many ways," said Peter Strebel, president of Omni Hotels & Resorts. "It kind of tells the customer what's the experience they'll get, who you are and what your personality is."

He said the "integrity of the brand and the consistency of the brand is so very, very important," but the exceptionally high number of hotel brands can dilute that benefit.

"There is just a ton of brands launched every day, and I think there's a big brand confusion out there," he said, adding his company has no plans to go beyond its flagship Omni brand.

George Limbert, president of Red Roof, agreed that consistency is key in brands providing value to guests and owners, and he said that's not just true for high-end brands.

"Any brand really gives you equity or a feeling, just like when you're driving down the street and you see the golden arches. You get a feeling, and you get an understanding of what that brand is about," he said.

But Hubert Viriot, CEO of the now 12-year-old Yotel brand, said brands do need to adapt to the current realities for consumer behavior. He said at the most basic level, what consumers want from a hotel is "to have a great room, and they want it to be affordable."

To achieve those goals, Yotel focused on highly designed but smaller than industry standard guest rooms, removing what Viriot called "unnecessary space," and investing in better public spaces and technology.