More brands = More reach ✔️
More brands = More reach = More RevPAR growth ❓
Not always.....Brand proliferation is a powerful tool, but it's not a guarantee of #RevPAR growth.
New brands are everywhere. For franchisors and developers that means more choice, more flexibility, more loyalty members, and more ways to reach guests.
But for #owners, #asset managers...
- Will this brand drive incremental demand, profitably?
- How much will the new brands cannibalize existing ones?
Just 28% of hotel brands are outperforming the average. There are winners, they are just harder to pick. Pick the right brand and you are sitting pretty💰
- Over the last five years, the highest RevPAR growth brand within a given chain scale outperformed the weakest by 41%. At 1:1.5 or 1:2x flow through, that could mean 80% higher profits.
The CBRE Hotels 2025 Hotel Brand #KPI report: Strategic #Hotel Affiliation in a Low-RevPAR, High-Brand-Proliferation Environment, looks at how brand strategy is evolving, where RevPAR outperformance is (and isn't) happening, and what to watch as the industry matures, consolidates, and new brands multiply.
Oh, and don't believe everything you read on the elimination of #complementary breakfast. Yes, the soccer team stuffing a tree's worth of bananas in their duffel on Saturday morning is annoying, but as our analysis shows, that "free" breakfast still drives demand, RevPAR growth, and margins.
Read the full report here in just five mins:
💡 https://lnkd.in/e22pex93
Patric Dolan, Christine Bang, Robert Mandelbaum, Celeste Santangelo, Michael Nhu, Will Webster, Tommy Crozier, Cole Mortland, John Barreto, Erin Mulvania, Jennifer Bainger, Chito Arabaca, Nestor Martinez, George Cunha, Hogan McDade, Aleta Riggs