4 ms·

Most hotels do not own their own real estate.

by steve-benjamins 10y ago

kelukelugames 10y ago
Is this true? Sorry I need a little more proof than one sentence.
- kiwidrew 10y ago
  Yep, definitely. Here's a quick look at Marriott's ownership structure, which is an operating model shared by many other global hotel brands: http://marketrealist.com/2014/10/why-marriotts-hotels-have-specific-ownership-structure/ http://marketrealist.com/2014/10/why-marriotts-hotels-have-s...
- deleted 10y ago
  [deleted]
- natrius 10y ago
  Here's the big hotel operator in Austin. One operator, all of the hotel brands: http://www.whitelodging.com/portfolio/hotels http://www.whitelodging.com/portfolio/hotels
- hkmurakami 10y ago
  Check the lobby and surrounding area next time you're staying at a big hotel chain. Oftentimes you'll find a plaque that mentions the operating company name. Certainly the case with the Palo alto Sheraton I frequent. What'll someone's happen is that the building and management don't change, yet the hotel brand will change.
vkou 10y ago
Yes, they follow the franchise model. What differentiator would an AirBnB hotel franchise bring to that table? Their brand? There's no particular reason that wouldn't be successful, but it makes about as much sense as them branching out into the ketchup-making business.
- bduerst 10y ago
  Part of being a franchisee means access to their software/booking system. Being a Marriott hotel means you have access to Marriott customers on Marriott.com and other sites through their systems. That's not much different than AirBnB.
  - vkou 10y ago
    Of course! My point is that AirBnB's private rental business would give it no significant competitive advantage to Mariott in the franchised hotel industry. At best, it would give them a cross-product marketing channel... While marrying themselves to a lot of financial, and brand risk. They may as well take that money, and invest it into <Insert non-core competency of AirBnB>. Or, alternatively, partner with an existing hotel franchise. Managing other people's properties, on the other hand, is a natural extension of their core business.

Most hotels do not own their own real estate.

kelukelugames 10y ago

Is this true? Sorry I need a little more proof than one sentence.

kiwidrew 10y ago
Yep, definitely. Here's a quick look at Marriott's ownership structure, which is an operating model shared by many other global hotel brands: http://marketrealist.com/2014/10/why-marriotts-hotels-have-specific-ownership-structure/ http://marketrealist.com/2014/10/why-marriotts-hotels-have-s...
deleted 10y ago
[deleted]
natrius 10y ago
Here's the big hotel operator in Austin. One operator, all of the hotel brands: http://www.whitelodging.com/portfolio/hotels http://www.whitelodging.com/portfolio/hotels
hkmurakami 10y ago
Check the lobby and surrounding area next time you're staying at a big hotel chain. Oftentimes you'll find a plaque that mentions the operating company name. Certainly the case with the Palo alto Sheraton I frequent. What'll someone's happen is that the building and management don't change, yet the hotel brand will change.

vkou 10y ago

Yes, they follow the franchise model. What differentiator would an AirBnB hotel franchise bring to that table? Their brand? There's no particular reason that wouldn't be successful, but it makes about as much sense as them branching out into the ketchup-making business.

bduerst 10y ago
Part of being a franchisee means access to their software/booking system. Being a Marriott hotel means you have access to Marriott customers on Marriott.com and other sites through their systems. That's not much different than AirBnB.
- vkou 10y ago
  Of course! My point is that AirBnB's private rental business would give it no significant competitive advantage to Mariott in the franchised hotel industry. At best, it would give them a cross-product marketing channel... While marrying themselves to a lot of financial, and brand risk. They may as well take that money, and invest it into <Insert non-core competency of AirBnB>. Or, alternatively, partner with an existing hotel franchise. Managing other people's properties, on the other hand, is a natural extension of their core business.