Soft Brands – A Third Alternative

Robert Mandelbaum and Paul Isaacson | September 4, 2024

By Robert Mandelbaum and Paul Isaacson Historically, hotel owners have had the option to either affiliate with a known brand or operate independently. Affiliating with a brand provided access to a reservation system, loyal customers, communal marketing programs, a known identity among consumers, and a sense of stability within the finance and investment community. Brand affiliation, however, comes with costs. Owners pay a variety of fees for royalty, marketing, reservation, and guest loyalty programs, and need to conform to facility, service, and operating standards. Operating independently relieves owners from the burden of the franchise-r...