Movement Coincides with Release of New HVS Study Demonstrating Brands Strength in Helping Independent Hotels Outperform Franchise Competitors
- Oct 24, 2019
Courtesy/News Source: hospitalitynet.org
NEWPORT BEACH, CALIFORNIA - Preferred Hotels & Resorts, the world's largest independent hotel brand, declared yesterday as Independent Hotel Day to celebrate and raise awareness of authentic and unique hotels around the world. This global movement coincides with the release of a recent HVS study that showcases the extent to which independent hotels thrive in the areas of RevPAR penetration growth and ADR - while benefiting from significant cost savings - when affiliating with Preferred, a result of the brand's industry-leading performance.
Fueling momentum behind Independent Hotel Day are the findings of a new study by the hospitality consultancy HVS, which utilized STR data to analyze the performance of independent properties that joined Preferred Hotels & Resorts in 2015. The study found that Preferred-affiliated properties experienced a 10% growth in RevPAR penetration and achieved a 9% growth in ADR over the three-year period studied (January 1, 2016 through December 31, 2018). The HVS study also reported that Preferred Hotels & Resorts' cost to hotels is less than 1.4% of total gross rooms revenue, on average, compared to upwards of 11.7% charged by other luxury and upper-scale brands.
"This study showcases the irrefutable strength of Preferred Hotels & Resorts as the champion of independent hotels by providing the reach and penetration of a global brand, excellent value, and a suite of services that drive strong results to owners' bottom line," said Michelle Woodley, President of Preferred Hotels & Resorts. "In a world desperate for individuality and expression, we encourage all hotel owners to ask themselves on Independent Hotel Day and every day in the future, 'Why incur the cost and encumbrance of a franchise when independent hotels perform better and have far more freedom with Preferred by their side?'"
As more and more owners and asset managers consider the potential of independent status, Preferred Hotels & Resorts has proven to be an attractive partner of choice to support new-to-the-market projects and brand conversions alike. This year alone, Preferred will celebrate more than 25 new independent hotel openings within its global portfolio - ranging from Amerikalinjen in Oslo and Santarena Hotel in Costa Rica to Mystery Hotel Budapest and Encore Boston Harbor. Since July 2013, the brand has supported more than 80 hotels and resorts who have de-flagged from a major chain or other soft brand such as The Fullerton Hotel Sydney (formerly Westin), Shutters on the Beach in Santa Monica, California (formerly Leading Hotels of the World), Pulitzer Amsterdam (formerly Starwood Luxury Collection), Sea Containers London (formerly Morgan's Hotel Group), and Hotel Chinzanso Tokyo (formerly Four Seasons). These hotels join dozens of other celebrated hotels, resorts, residences, and regional hotel groups that affiliate with the Preferred brand on an annual basis.
Since 1968, Preferred Hotels & Resorts has stayed true to being the deliberate storyteller on behalf of the independent hotel experience. With more than 35 offices worldwide, the company brings strategic advantage to hotel owners, operators, and management companies through brand prestige and global operating scale, supporting the goals of its member hotels by providing strategic group, corporate, and leisure sales, integrated marketing solutions, comprehensive revenue management, global connectivity through reservations services, progressive distribution technology, and individualized guest support.
For more information on Preferred Hotels & Resorts, how it champions independent hotels, or its global portfolio, please visit www.PreferredHotels.com. Please see a copy of the complete HVS study here.
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