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Soft brands are having a moment, and Ron Pohl is watching the momentum from the front row. In this conversation, the president of WorldHotels and international operations for BWH Hotels dishes on what’s driving the boom — and how owners are weighing the reach of a major brand against the independence that gives a hotel its personality. He also gets into what’s setting BWH Hotels’ offering apart as more owners look for ways to tap into brand power without giving up their identity.
—Interview by Jennifer Glatt, edited by Bianca Prieto
(Image courtesy: BWH/WorldHotels)
What is driving the growing appeal of soft brands among U.S. hotel owners and developers today?
Well, certainly they like fewer brand standards. But so many of these hotels have their own legacy with them, and they don’t want to lose that. But there may be an opportunity to reposition the asset. So, how can we help you do that? Just from a pure operations perspective, if you can fill base business with 20% of rooms and then elevate the rest, it's a win-win.
We’ve got six categories within WorldHotels: Luxury, Elite, Distinctive, Crafted, Backdrop and Residences. They have their own unique positioning and can join into our brand potentially without a PIP. So, if the hotel is happy with where it is, they may come in as an upper upscale, as a Distinctive. But if they see an opportunity to move upmarket, okay, well maybe there are some capital investments, and now we can move you to an Elite level, which has a $30 to $50 premium over the Distinctive brand. Or if it's a boutique property, they can join as a Crafted, because that really is intended for that smaller lifestyle boutique feel with food and beverage. Then we can leverage that segment for that hotel.
From an ownership standpoint, owners know the customers don't want just a box anymore. They don't want to feel like no matter what city they're in, it feels the same. They want that local feel, and we respect that, and then we try to leverage that to help reposition it and drive additional revenues to them.
What do you think sets BWH Hotels’ soft-brand offering apart in a crowded market?
We have a variety of choices within the brand. Competing brands have different soft brands within their portfolio. Ours are all under WorldHotels, so customers will search for WorldHotels and have a variety of options.
Also, our fee structure is fair in the approach that many of our deals are done so that hoteliers only pay for the business we drive to them. So yes, some deals are royalty-based, but in that same approach, again, I always have my operations hat on or ownership hat on to say, well, if I'm generating 50% of that business myself, why am I paying a brand for that business? We have brand standards, but from the royalty side of things, we've created a model that says, think of us as a travel agent. Pay me 10% commission on all the business that I generate for you. Pay me through the loyalty program because you have to participate in that. But that other business that you're generating yourself, I don't deserve to get paid for. And that resonates with hoteliers, and it puts the onus on us to perform. So, I’m very happy with that model, and especially for the bigger hotels that we have in North America. You know, the Caribe Royale Orlando. It’s a 1,300-room resort property. The Peppermill Resort in Reno, Nev., is a 1,600-room resort casino hotel. We’ve got Eden Roc in Miami Beach. Those hotels are known for who they are. So, our partnership with them is: let’s make it fair and let's work together. And it’s been a very good relationship from that perspective.
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What are owners weighing when they consider the trade-offs of partnering with a major hotel brand?
They’re looking at, again, loyalty. It’s huge across the industry. WorldHotels and Best Western Rewards programs combined have 70 million members. Being able to leverage that and market it for their hotel is huge, and we have one of the most lucrative reimbursement programs for hoteliers. Many pay 30% of the dollar; ours is more than double that. So, we want customers to be able to redeem at hotels all the time. There’s nothing more frustrating than blackout dates or hotels that don't want to put inventory in because it's not beneficial. Our program is completely different from that.
Our investments in technology, AI and digital platforms are essential to helping hotels remain competitive. By providing these resources at no additional cost, we enable hoteliers to access capabilities that would otherwise require significant investment.
And our Worldwide Sales team again — depending on the location — we’ve got 160 people around the world who are selling accounts. Being able to tap into that, into the markets or accounts that are available in their market is tremendously important. They want a global brand. They want to connect where appropriate, but they also don’t want to be dictated to by all of these brand standards. We've taken a flexible approach to how we do that. The number one measure for success, and our standard, is: what’s the guest satisfaction level? We use social media, we use Medallia, and say at the end of the day, we're not going to throw all these brand standards at you. If customers are happy, let’s keep them happy.
How is the rise of soft brands influencing the way hotels think about design, experience and identity?
This evolution is driving both hotels and brands to rethink their approach. Younger travelers are looking for more personalized and less prescriptive experiences, while luxury consumers continue to redefine what premium hospitality means to them. Luxury travel is no longer reserved for high-net-worth individuals. Today, travelers across a wide range of demographics are increasingly willing to save and prioritize spending on exceptional upscale and luxury experiences.
One of our hotels, a beautiful property in Sicily on the side of a mountain with an olive grove next to their resort, said, “I was thinking about adding some rooms. Could I add glamping instead?” Hotel operators are thinking differently about what that next best guest wants, and whether they can tailor themselves to a completely different segment their resort today is not attracting.
If you’re renovating a hotel in Phoenix, make it feel like it’s the Southwest. Don’t make it feel like it’s New York City. I think hotels get that, and the long-term value and return on that will be tremendous, because boomers aren’t the segment we’re targeting anymore. It’s much younger than that. I have three kids, all between millennial and Gen Z, and they all think completely differently about travel. We have to recognize that.
Mint Pillow’s Take
Soft brands are tapping into a shift that many hoteliers are already seeing: guests want hotels that feel distinctive, while owners still need the reach and resources a major brand can provide. The sweet spot is finding a partnership that supports your hotel without eroding what makes it special.
Start by asking what your property offers that guests can’t get just anywhere, and whether you’re making enough of that difference. Then take a closer look at the business your brand relationship actually generates. If the partnership is bringing meaningful new demand, that has value. If it isn’t, there may be room to rethink the arrangement. Finally, look at the guest you’re trying to attract next. Does your hotel feel relevant to that traveler? You don’t need to reinvent everything. One thoughtful change can move the experience closer to the property — and the guest — you want to build for.
