Brand-Mania Continues

Good idea or not, hotel companies find more niches to segment opportunities.

-- Hotels, 5/1/2008

WORLDWIDE—Companies will not stop lining up to launch new brands, hopefully proving the global hotel market is still very ripe for expansion and consumers are hungry for contemporary and niche products. This report does not even include the likes of Starwood Capital's Baccarat brand; SLS starting in Beverly Hills; Secrets Resorts & Spas expanding in Mexico; Luxury Lifestyle Hotels & Resorts coming to America; BlueBay Hotels & Resorts developing in Latin America; the launch of Dutch hotel group citizenM; the rebranding of Italy's Domina Hotel Group; Accor creating the Pullman brand; Swire Hotels developing four hotels in China; Hyatt's Andaz brand; Marriott's Edition boutique brand and more. Evidently, this is not enough. Read about the coming out parties for more new brands from around the world. How many of these brands become meaningful players, of course, remains to be seen.

Pan Pacific Serviced Suites

UOL Group, owner of Pan Pacific Hotels and Resorts, in April launched a luxury extended-stay brand, Pacific Serviced Suites, which it wants to expand extensively in Asia Pacific as UOL tries to capture the growing demand from Asian business expansion. The brand's unique service touchpoint is its personal assistants, available to residents around the clock to attend to business, social and personal needs. More important, the personal assistants are the local connectors for residents, helping them ease into their new lives, focus on their work and enjoy the local experience. The first Pacific Serviced Suites in Singapore has 126 suites.

3 Palms

Atlanta-based America's Best Franchising Inc. (ABF) has teamed up in a joint venture with Hotel Condo Services LCC of Orlando, Florida, to launch 3 Palms, which consists of properties with a 3-star rating or higher. The first six properties, with a total of 1,455 rooms, are expected to be operational in the Orlando area by May 1, with an additional three hotels—totaling 636 rooms—scheduled to become part of the brand by the end of 2008. Other properties may also join the brand this year through franchising. Some ABF properties will re-brand using the 3 Palms name, while others will retain their current names and add a tagline describing the property as a 3 Palms hotel.

Grand Pineapple Beach

Sandals Resorts International has launched a value all-inclusive brand called Grand Pineapple Beach. Two resorts, Grand Pineapple Beach Resort in Antigua and Negril Gardens in Jamaica, will be re-flagged with the new moniker. According to CEO Adam Stewart, “This concept has been in the works for the better part of two years. We were careful and deliberate in creating the Grand Pineapple Beach experience—which, above all, is about quality.”

Hotel Highland

Associated Ventures LLC, Los Angeles, an international real estate development and investment firm, announced a new hotel collection for the U.S. lodging market called Hotel Highland. The limited-service, urban boutique brand is designed for business and leisure travelers seeking affordable, stylish accommodations in an urban environment. The first property, Hotel Highland at Biltmore, is set to open in September following the conversion of a 120-room Phoenix Inn Suites. An 80-unit condominium tower is in the plans to be built adjacent to the hotel when market conditions stabilize. Associated Ventures is in negotiations to purchase a second property in Chicago and a third in Tucson, Arizona, for the Hotel Highland collection. The typical candidate for a Hotel Highland is an existing, uniquely located mainstream branded hotel in the stage of its life cycle where a costly improvement plan is required to conform to the standard brand comp set.

SILQ Hotels

Palmer Hospitality Group out of Beverly Hills, California, a global management, development and marketing resource company serving independent boutique hotels, is creating the new SILQ Hotels brand for Asia. The first SILQ hotel is slated for the fall in Bangkok and another hotel is under development in Bali. The common thread for SILQ properties is privacy, exclusivity and 5-star service with sophisticated, edgy delivery. “Our goal is to meet the needs of our clients, whether they opt for a full-service management company or utilize our specialized services,” says Lesley Carey, Palmer's president. “The SILQ brand is an example of our combined management and marketing capabilities.”

U Hotels & Resorts

First there was W and now there is U. Tanayong Public Co. Ltd., one of the largest residential and commercial property development and investment companies in Thailand, wants to develop an uncomplicated, deluxe brand of 10 hotels in five years within Thailand and surrounding markets. In Thailand, the company will focus on Chiang Mai, Chiang Rai, Kanchanaburi, Phuket, Samui, Krabi, Khao Yai, Rayong and Bangkok. Other targets include Luang Prabang in Laos, and Phnom Phen and Siem Riep in Cambodia. U Hotels & Resorts will consist of a maximum 100 rooms and suites, and in some cases will include a residential element. The first property is under construction and schedule to open by mid 2008. U Chiang Mai will be a low-rise building with 41 rooms.

Silks

Not to be confused with SILQ, Formosa International Hotels Corp., Taipei, in February announced its Silks brand, which it intends to grow regionally and globally. Formosa will operate Silks using a multi-brand strategy and has updated its organizational infrastructure, dividing the company into three departments—hotels, banqueting and food & beverage, and business development. The luxury Grand Silks brand, with about 300 rooms and an ADR of US$300 or more, has development plans for Taipei, Shanghai, Beijing and Ningbo. The first-class Silks Place brand will have about 200 rooms, an expected ADR between US$200 and US$300, and targets Taipei, Taichung, Kaoshung and Yilan. The mid-market Just Sleep brand, with fewer than 200 rooms and an ADR around US$100, has four development locations in Taipei.