The hospitality industry is witnessing a surge in dual-brand hotels, a model where two distinct hotel brands operate under one roof. This strategy offers several advantages, primarily cost-effectiveness and risk mitigation.
By sharing common facilities such as pools, gyms, and elevators, dual-brand hotels significantly reduce construction costs and operational expenses. This shared infrastructure allows developers to maximize yield on a site, especially in challenging economic climates.
Major hotel chains like Marriott (with over 400 co-branded properties) and Hilton (over 125 dual-brand properties globally) are leading the adoption of this model. CoStar data indicates a substantial presence of dual-branded hotels across the U.S., with a considerable number under construction or renovation.
While sharing infrastructure, dual-brand hotels maintain distinct guest experiences for each brand. Design elements and services are tailored to cater to the specific branding and target audience of each hotel, ensuring a differentiated guest journey. This is crucial in attracting a broader range of travellers and diversifying revenue streams.
The dual-brand model accelerates the path to profitability by reducing initial investment and ongoing operational burdens. This approach is particularly attractive to developers seeking to navigate the challenges of rising interest rates and limited available land.
Hotel developers are increasingly pairing two brands in a single building to tame construction costs, creating a model that promises high returns partly by being less dependent on any one type of traveler.
This approach, known as dual-brand hotels, allows developers to share expensive infrastructure like pools, gyms, and elevators.
"In today’s development environment with high barriers to entry on infill land and elevated interest rates, maximizing the yield on a site is imperative to getting a project built," said Adam Dahan, vice president of business development at hospitality management company Azul Hospitality.
Marriott has more than 400 co-branded properties open. Hilton has more than 125 dual-brand properties globally and over 100 in development. Across the U.S. sector, 1,167 dual-branded hotels are open and 183 are under construction or renovation, CoStar said.
Lower Build Costs, Leaner OperationsDual-brand hotels promise developers a faster route to profitability by reducing upfront construction costs and long-term operational overhead. Marriott’s model, for instance, emphasizes shared infrastructure while keeping guest experiences distinct.
"From a design perspective, what we would typically expect with dual brands is to have separate guest experiences across the two different brands," Paul Thomas, vice president of international developmen
If you often open multiple tabs and struggle to keep track of them, Tabs Reminder is the solution you need. Tabs Reminder lets you set reminders for tabs so you can close them and get notified about them later. Never lose track of important tabs again with Tabs Reminder!
Try our Chrome extension today!
Share this article with your
friends and colleagues.
Earn points from views and
referrals who sign up.
Learn more