Q&A: What owners now want from a brand partner

North America's hotel market is crowded, and another flag alone isn’t much of a selling point. What do you think hotel owners are actually looking for in a brand partner today, and where are their expectations changing?

I think the days when a brand could simply offer a reservation system and a logo and call it value are over. Owners today are sophisticated and looking at the full equation of: distribution, operational support, flexibility, capital efficiency and ultimately whether a brand can drive a better return on investment. A huge change is that owners no longer want to choose between scale and individuality. They want access to global demand and loyalty while preserving what makes their asset unique, retaining their own identity. They’re also asking harder questions about justifying brand fees, brand standards, renovation requirements and whether those investments actually produce measurable returns. All good questions, indicative of the current hotel owner mindset and decisions they are grappling with. Owners are looking for a brand that hasn’t forgotten (or recognizes) their needs and challenges.

When you look at a potential market or property, what’s the thing that makes you lean in while everyone else might still be on the fence? 

One thing that often makes me lean in is when it’s difficult to define a traditional competitive set—particularly for our Anantara brand, which has deep roots in immersive and local experiences woven into the brand. For many investors and brands, that’s a reason to walk away, because underwriting becomes less predictable. For me, it can be exactly what makes an opportunity interesting. If a property has a truly distinctive setting, whether it’s a remarkable natural environment, a unique cultural story or the ability to create experiences that simply don’t exist elsewhere, I’m willing to look beyond the fact that it may be harder to access or benchmark against nearby hotels. Some of the most compelling destinations aren’t competing with the hotel down the street. Their competitive set may be regional, national or even international because guests are choosing the destination for the experience itself. 

Is there a signal you’ve learned to trust that doesn’t show up in the usual feasibility study? 

Yes. One signal I’ve learned to trust is whether a destination has an emotional pull that makes people willing to go out of their way to experience it. Feasibility studies are excellent at measuring existing demand, but aspirational demand is much harder to define. Some of the most compelling opportunities I’ve seen are in places that aren’t the easiest to access for the vast majority and don’t have a perfect set of comparable hotels. What they do have is a remarkable setting, a strong sense of place or the ability to deliver an experience guests can’t find anywhere else—something worth the challenge of getting to.

I just returned from the Anantara Convento di Amalfi in Italy, and it was honestly a bit of a challenge to get to due to the tiny, busy, tourist-congested roads, but a total reprieve once there, perched in the mountains overlooking the town of Amalfi, formerly a convent, with a still-active chapel inside. It was stunning and worth every effort to experience!

Global hotel groups often bring a familiar formula to a new market. How do you decide what should travel from Minor’s international experience and what needs to be rethought for North American travelers? 

The key is understanding the difference between what makes a brand distinctive and what makes it relevant. Our approach to hospitality, wellness, experiential travel and our strong heritage in luxury are part of who we are. Those elements create consistency and give guests confidence in the brand. What shouldn’t be copied blindly is the assumption that consumer behavior is the same everywhere. North American travelers have different expectations around dining, loyalty, technology, wellness and how they engage with hotels throughout the day. We have to listen closely to local customers, owners and operators and adapt accordingly. A great example is breakfast—and we are exploring this—how do we adapt to recognize that breakfast buffets may be cherished in some regions, while less so in others?

What’s something owners or developers still take for granted in hotel development that, in your experience, deserves a much harder look? 

I think many people still underestimate the importance of positioning. A lot of development conversations focus on physical product, financing and construction costs. Those are obviously critical. But the question I always ask (maybe due to my time on a brand team!) is: Why will this hotel matter five years after it opens? Too often, projects are designed to fit into a segment rather than to stand out within it. In today’s environment, guests have endless choices. Simply being a luxury hotel or a well-designed hotel isn’t enough; guests are demanding more. The winners are properties with a clear sense of identity, a compelling reason to visit and experiences that can’t easily be replicated elsewhere.

Anything else you’d like to share? 

Personally, I feel there is a sense of reckoning this year as franchisees/owners and brands really evaluate the worth of their relationships—more than ever before. This sentiment has been a catalyst for us. We have the benefit of being considerably new to the region, which allows us the ability to take a step back and do some serious soul-searching about how we can adapt our offerings to meet what hotel owners want here and now.