Two is company
Hospitality chains are hosting dual brands on one property, looking for operational efficiencies without diluting their brands
a clear distinction of brands. In India the trend has just started. Unlike the global markets, in India, hotels do not have the concept of select services. This can be a distinct factor of differentiation among brands especially if you are clubbing a premier and budget brand,” she added.
Sabharwal agrees that it is a challenge, maintaining distinct brand positioning is something that the hotels must keep an eye out for while adopting the model. Therefore, he says, the two brands chosen must have a clear identity and a limited degree of overlap of their customer base. At the same time, however, the positioning of the two brands should not be too far apart for them to co-exist successfully. “We have touched upon some of the key benefits in terms of diversification, flexibility and operating efficiencies in this model,” he added.
Notwithstanding the pitfalls of marrying multiple brands into a single property, the trend has caught on worldwide. In the US, chains have moved from dual to triple-branded properties. In an article in its online magazine JLL Real Views, investment management firm JLL wrote, “Today’s triple branded hotels build on the popularity of dual branded hotels, which have gained traction over the last five years. Today, there are at least 75 dualbranded hotels open across the United States. JLL estimates that at least 3,000 additional rooms are being developed or converted in dual-brand developments, showing the demand exists and is growing.” Indian hospitality chains are in agreement.