Impact Considerations in Hotel Site Selection
Is Hotel Impact (infringement) Curtailing Supply Growth in Major Markets and Driving it in Their Submarkets?
By the time this post appears on my social media outlets, these numbers could change. Marriott alone has over 25 brands. Hilton has at least 14, and IHG has 10. Not to mention Choice (credited with “inventing the word “segmentation”), has ten.
Soft brands that target those who want to remain independent yet realize the benefits of the brand. Major brands have been expanding their reach by developing new brands that target ever more narrow niches. Regardless of the brand, “impact” effects hotel site selection.
The majors have defined impact (another word for infringement ) in terms of distance as well the occupancy encroachment of an applicant on an existing franchisee.
Hotel developers in some cases are forced to find sites that are beyond the distance limit of a brand. This could result in a site that could achieve a lower occupancy and ADR than a more desirable.
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