Multi-brand properties are essentially commercial properties that are collaboratively established by two or more well-known brands. They have become a prominent phenomena lately. Their prevalence is particularly visible in the higher-end luxury hospitality industry. The success of such properties and commercial ventures is predicated on being able to capitalize on the brand value and goodwill of each associated name.
Multi-brand chains benefit their stakeholders only when both brand names are utilized to their highest commercial value. Doing this, however, can be tricky since both brands are integrated into a single property and as such, proprietary distinctions are blurred. Below are some key steps to actualizing each party in a multi-brand property:
Key Steps to Utilizing Brand Value in Multi-Brand Properties
1. Ensuring a Proper Blend
Blending in brand identities in multi-brand properties requires a careful assessment of the representation for each brand. These will be subjected to the partnership particulars on each property. However, irrespective of the percentages, there needs to be a balanced mixture of each brand in all things. This goes from all the decor to the culinary options to the guest service and all other aspects. Doing this will ensure both brands get equal representation and can draw on the previous goodwill in the market.
2. Determining Marketing Brand Representation
The name of the property and all legal matters relating to it will greatly impact the future marketing required for it. The partnering brands need to develop an understanding on how they want the naming to be done. Factors to consider in this regard include the proportion of the partnership, the brand value brought in by each partner, the viability of each partner in the immediate and broader market and aesthetical considerations. These will come together to deliver brand name which can strategically present the best value proposition to clients across the broad.
3. Operational Flexibility
Any multi-brand property is susceptible to delays in decision making owing to a lot of corporate hurdles. This needs to be ironed out to ensure that decisions are made and relayed effectively. Usually for larger properties in the luxury hospitality market, the establishment will have a board of directors. This board will be comprised of representatives from each brand. It is important to have a rotational authority structure or implementation of discretionary powers on all parties. This will help ensure that decisions are made quickly but also with due consideration given to all parties.
4. Resource Sharing
Multi-brand properties should have a proportionate mixture of assets from each party. This will not only reflect in the financial statements but also in the client-side presentation. This is ideal because it allows both parties to provide their own value propositions to create a composite which can faithfully represent the collaborative vision of the venture. Further, this will relieve financial and infrastructural maintenance liabilities from one party and distribute it proportionately. This will ensure that properties are able to represent their multi-brand identity in the best way and attract clientele from relevant markets more efficiently.
5. Unique Client Experience
The central idea behind having a multi-brand venture is to allow targeting of a broader market. Partners in such ventures should identify the segments they want to target and follow through on all further considerations with these segments in mind. For example, a segment for business owners can expand the target niche to include more than just the top echelon of corporate presence in the local region. Similarly, luxury hospitality establishments can target travellers from different niches for broader and more sustainable clientele.
Multi-brand properties in any kind of hospitality segment can be a beneficial venture. However, they need to have a strong brand development and marketing plan which actualizes the value proposition of all parties involved. So, a careful approach is required wherein the myriad of market variables are considered and integrated to allow the most rewarding representation for all parties.
The best way to approach the establishment of multi-brand properties in commercial markets is to create an elaborate agreement which details the involvement of each brand and its representatives. If the guiding document is well-designed, then all future decisions regarding business operations and property management would be streamlined as well.