Wojtek Sasin’s Post

Two-thirds of U.S. hotels carry the name of a major brand. But companies like Marriott Hotels, Hilton and Hyatt Hotels Corporation don’t own or even run most of the properties. They have adopted a business model that focuses on managing and franchising hotels rather than owning them. This approach allows for rapid expansion and reduced risk. Here’s what’s behind that strategy and what it means for consumers. #HotelIndustry #HospitalityInvestment

💡 Why #Marriott, #Hilton and #Hyatt Don’t Own Nearly 99% of Their #Hotels ➡️ Two-thirds of #US Hotels carry the name of a major brand. ➡️ Companies like Marriott, Hilton and Hyatt don’t own or even run most of the properties. 💡 Here’s what’s behind that strategy and what it means for consumers.

That’s how you run businesses 🦾

Why Marriott, Hilton, and Hyatt Don’t Actually Own Most of Their Hotels? In the hospitality industry, brands like Marriott, Hilton, and Hyatt are synonymous with luxury and reliability. Surprisingly, these giants own less than 1% of their properties. Instead, they leverage a franchise model, licensing their brand names to third-party owners who manage the hotels. This strategy allows for rapid global expansion without the financial burden of property ownership. Key insights include: - Franchise Model: Enables brand growth without significant capital investment. - Pricing Strategy: Franchisees control room rates, balancing local market demands with brand reputation. - Loyalty Programs: Drive repeat business and higher occupancy rates, benefiting both franchisors and franchisees. - Strategic Partnerships: smaller hotel owners gain credibility and visibility by partnering with major brands. Understanding this model reveals the strategic brilliance of these companies and underscores the importance of branding and partnerships in today's competitive market. The franchise approach is a compelling case study in balancing growth with sustainability, offering valuable lessons for current Business students. https://lnkd.in/e9vX-_3S #HotelIndustry #Hospitality #FranchiseModel #Marriott #Hilton #Hyatt #BrandStrategy #BusinessModel #TravelIndustry #LoyaltyPrograms #HotelManagement

🌟 Interesting Insights from Leeny Oberg! 🌟 The Wall Street Journal sat down for an insightful discussion with Leeny Oberg, where they delved into the intricacies of our company's operating model and its promising future. Leeny Oberg shared valuable insights on the evolution of hotel branding, shedding light on the dynamic landscape of the hospitality industry. #HospitalityIndustry #BusinessInsights #FutureOfHospitality #HotelManagement #InvestmentStrategies #marriottbonvoy #marriott #marriottluxurygroup

Here is a video in the Wall Street Journal this week that begins with a discussion of the structure of the branded hotel industry in the United States, and then veers into a discussion of revenue management. The video gives a lot of creds to Marriott, Hilton and Hyatt, and curiously ignores IHG, as well as two brand companies with a huge footprint in the economy segment: Choice and Wyndham.

🌟 Unlock the Power of Diversification in Your Hotel Portfolio! 🌍   In our latest white paper, “Building a Strong Hotel Portfolio: The Art of Diversification & Brand Selection,” we discuss how a diverse portfolio can enhance market stability, boost revenue, and improve guest loyalty.   ✨ Key Insights: Stability: A varied portfolio shields against economic downturns. Revenue: Different brands attract diverse guests, increasing overall income. Loyalty: Consistent experiences across properties foster trust and repeat bookings.   Discover how partnering with Wyndham Hotels & Resorts can simplify operations and optimise performance for your hotel business.   📖 Read the full white paper here: https://lnkd.in/dm3eamWx   #WyndhamHotels #Hospitality #Diversification #HotelManagement #wyndhamhotelsemea #mywyndham #hospitalityindustry #growth #diverseportfolio

Exciting news in the hotel world! 🌟 Hyatt Hotels has just made a major move by agreeing to acquire Standard International for up to $335 million. This deal is set to bring 21 properties, including the famous Standard High Line in New York, into the Hyatt family. They’re also picking up the Bunkhouse and Peri Hotels brands, expanding their reach to cities like London and Bangkok. This acquisition is a big part of Hyatt’s strategy to focus more on a "light-asset" business model. What does that mean? Essentially, Hyatt is shifting away from owning lots of properties and moving towards managing and franchising hotels. This new direction includes creating a lifestyle group that will be led by the executive chairman of Standard International. It’s an exciting time, and while we still have some questions about how everything will play out, it’s clear that Hyatt is making bold moves to shape the future of travel and hospitality. For more details, check out the latest updates at The Points Guy! #zulfiqarhaidershah #syedzulfiqarhaider #HyattAcquisition #StandardHotels #TravelNews #Hospitality #HotelIndustry

Check out IHG Hotels & Resorts CEO Elie W. Maalouf’s interview with CoStar, in which he outlines the many tailwinds he sees for IHG in the new year. Expressing optimism for revenue growth in 2025, Maalouf cites a recent surge of business travel and group bookings, the expanding Chinese middle class and investor confidence as major factors keeping IHG aggressive in signing new franchise deals and adding to the company's hotel development pipeline. Read the full interview at bit.ly/3VDD2l7.

Hilton Hotels & Resorts has announced the opening of two new Spark by Hilton properties in northern Poland under a franchise agreement with Grupa Hotele Polskie. This marks the national debut of Hilton’s premium economy brand. The two new hotels will add a total of 226 rooms and are expected to welcome guests within six months. For more information please follow the link in the comments: #hotels #development #debut