Source: TOPHOTELPROJECTS

The debate about how many brands is too many continues to rage in the hospitality industry. With big name groups acquiring more hotel brands on what seems like a daily basis, how is this conglomeration affecting the hotel industry at large? We take a look.

Brand proliferation causing confusion

Given the current climate of big name hotel companies acquiring smaller branded hotels at a rate of knots, it can be tricky to tell which brand belongs to which group. Big names such as Marriott or Accor Hotels are not only scooping up existing hotels to expand their portfolios, they are also constantly creating new brands under their wide-reaching umbrella. So it is no wonder that many experts in the hotel industry fear an over-saturation of brands on the market. Leaders of the main hotel groups that are perpetuating this trend seem to operate on the basis that there is no limit to the number of brands a company can administer. Tina Edmundson, Marriott International's global brand officer, says, "There is no such thing as too many brands. It's like being too skinny or too rich," while AccorHotels CEO Sebastien Bazin says, "Anyone telling me 'You should limit the number of brands,' I think, is bullshit." These companies are trying to garner more of a market share so they can be more competitive, but it can be hard to differentiate between brands when they are all run by the same company. Carving out a particular identity for a brand is one of the biggest issues when smaller brands become subsumed by big companies.

Small hotel owners have cause for concern

However, this is not how everyone in the hospitality industry feels about the proliferation of hotel brands. Hotel owners are sceptical about what this means for their industry. Some smaller hotel groups are wary of having too many brands, such as the Radisson Hotel Group, who operate eight brands compared to Marriott's 30 or Accor's 24. Radisson's Ken Greene says, "Our pie may be smaller than the big guys, but we have a very compelling value proposition for an owner. They don't have to worry about us bringing in another property in the same space. I hear a lot about how consolidation in the industry is good — the larger you are, the more leverage you get — but at some point, there are diminishing returns on that. At some point, it can work against you. Our focus is growing the top line for owners." Having a smaller group of brands also makes it easier to build stronger brand identity and to prevent competition between brands that are owned by the same group.

Future of brand accumulation

While the debate will continue to rage for the foreseeable future, relentlessly acquiring brands does not seem like a sustainable solution for an industry that is changing at a rapid pace. With the rise of lifestyle oriented brands and experiential hotels, the traditional idea of a brand may no longer chime with what guests are expecting and demanding. It remains to be seen what direction accumulating multiple brands will go in when the definition of a brand is no longer what it used to be.

Let's take a look at a few other projects currently underway by some big brands:

Radisson Blu Tsinandali

Tsinandali lies in the province of Kakheti, one of the most popular tourism regions of Georgia …[READ MORE]

Movenpick Hotel & Conference Centre Abuja

The proposed Queen Amina Gardens is a 19-hectare project of mixed-use development …[READ MORE]

Edition Hotel Barcelona

The hotel will be in the city's Ciutat Vella district, close to the Cathedral of Barcelona and nearly adjacent to the Santa Caterina Market. …[READ MORE]

More information on hotel brands can be found in the
TOPHOTELPROJECTS database.
TOPHOTELPROJECTS is the specialized service provider of cutting-edge information of the hospitality industry.

Jule Grass
Marketing Manager
+49 4261 4140 309
TOPHOTELPROJECTS