Luxury hotels for sale

Dual Branding: Is it a Successful Model?

The world of commerce is an ever-growing and expanding one. The fight to stay relevant, successful, and efficient is a reality that drives many companies to come up with more and more ways to push the boundaries of their particular fields. Sometimes these boundary-pushing measures flourish, and other times they fail. Risks that are never taken never pay off, after all.

In the world of luxury hotels for sale, the dual-branded model is still relatively new, but the benefits of two hotel companies operating out of one establishment far outweigh the downfalls. Let’s review some of the most exciting and successful aspects of dual branding.

More Opportunities

Dual-branded hotels hold an advantage over their single-brand counterparts in the services they offer. Few long-term hotels offer regular rooms for vacationers, and leisure hotels don’t have the amenities for long-term business or traveler guests to feel comfortable. A hotel with two brands under one roof can avoid this situation by offering both options. More options mean more availability to customers, and it takes less effort and expenses to run one large hotel versus two entirely separate properties built for two different purposes.

Cost Reduction

From the onset, dual branded properties offer tremendous upside in terms of costs reduction and savings.  Having a dual branded property allows hotel developers to save from a construction standpoint by sharing many common amenities between the properties such as the pool, conference/banquet space, fitness room, etc.  In addition, the ability to operate from one front desk and a combined back office and housekeeping space creates enormous savings from a labor and efficiency standpoint. Developers continue to highlight the savings by recognizing that the dual branded properties only require one general manager for both properties and sharing of key marketing efforts.

Revive Your Same-Old Hotel

Luxury hotels for sale are becoming a solid trend in the world of hotel management, but not all dual-branded models have to start from the ground up. For some properties, dual-branding can be the revival their hotel needs. As more properties recognize the trend of local, unique hotels, dual-branding becomes more relevant. For spaces that are too small for huge conventions or business conferences, but too large for vacationers and families, combining long and short term can be the perfect solution. By revamping a property, a fresh new spin is given to a hotel that was once fading away, and the opportunities for guests are easily doubled.

If you’re interested in buying or selling hotels, contact NewGen Advisory today, Arizona’s leading experts in hotel brokerage.

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