The Secret To Hotel Company Growth? Keep Launching New Brands

hotel room

Hotel companies are set to churn out more brands over the course of 2017, and it all has to do with one thing: sustaining growth.

Launching more brands fuels hotel company growth in markets that are already saturated with a firm’s existing brands, the Wall Street Journal reports. To capture more customers companies turn to new brands. Hyatt Hotels has created seven new brands over the last 10 years while Hilton Worldwide Holdings is focusing on growing its new Canopy brand, which will soon have 28 properties open around the world.

It’s unlikely hotel companies are going to slow down anytime soon, with STR data showing occupancy rates climbed to 65.4% in 2015 from 57.6% in 2010 while average daily rates have risen to $120.30 from $98.06 over the same period. The sector is likely to continue facing headwinds from Airbnb and similar online platforms. [WSJ]

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