NEW YORK— A seminar at the IH/M&RS held at the Jacob Javits Convention Center here last month drilled home the idea that the best-organized global brand usually manages to capture the golden ring in today’s hospitality market. In total, 70% of the hotels in the U.S. are branded and more are expected to join the bandwagon as those brands with a clear business plan continue to show profits even in a lackluster market. “As a stockholder, you want to see that the object of your investment is reporting clear goals so you can track their progress and growth or lack thereof,” said Jim Olson of Carlson Companies. “However, it’s not always easy for a publicly-traded brand to state such goals, especially given that the current environment is plagued by economic uncertainty and the threat of terrorist attacks because much could happen to change those stated goals at the end of the day.” Despite the uncertainty in today’s world, a clear mission that includes a brand’s short-term goals, long-term objectives and strategy is key in turning a profit, according to the panelists on hand. “All organization should be long-term in nature,” pointed out Eric Pfeffer of the consulting firm the Pfeffer Group. “Too often, publicly-traded brands get caught up in quarter-to-quarter earnings and lose sight of the big picture.” “Moreover, in our industry it really takes a little luck and a lot of planned execution to make it,” added David Kong of Best Western International. In fact, Kong reported at the seminar that Best Western is planning to execute several key expansions next year. The brand expects to launch more of its highest quality luxury hotels called Premiere hotels in the U.S., double its inventory in China, and keep a close eye on productivity. Olson of Carlson also noted that his brand has big expansion plans. In the Asia/Pacific market, Carlson is set to strategically buy existing franchises to take under its umbrella and thus strengthen their brand’s name there, according to Olson. In Europe, Carlson plans to develop further Radisson and Regent hotels, he added. Integration is another long-term goal for Carlson as the company plans to pull together several of its chains under the Carlson-branded name worldwide. In general, brands are hoping to cash in on their name recognition in these expansion efforts. Also, more technology is being utilized to help players like Best Western and Carlson get the product out and in the public eye. “In times of economic uncertainty, people flock to brands because each branded name carries a certain value with people,” concluded Pfeffer. “Also, with the new avenues afforded everyone via the latest and greatest technology strides, a good brand with a clear marketing strategy and business plan can more effectively get the word out to those all-important customers today.”
