Choice’s upper luxury soft brand targets boutique and independent owners and developers looking for upside.
NORTH BETHESDA, Md. — Choice Hotels International makes B2B and B2C headlines with the reopening of Radisson Individuals in the Americas on October 3, 2024. But what’s buzzing in the hotel investment community is the story behind how this luxury software brand is leveraging the intersection of consumer and owner/developer demand for highly curated experiential hotels. .
Radisson Individuals offers hotel owners and developers white space growth opportunities in hot niche markets. Experience the thrill of exploration and discover luxury full-service boutique and independent hotels with bold designs rooted in local culture, immersive regionally-inspired F&B, wellness amenities and exceptional service. Provides a unique experience in the scene. Catering to guests’ innate curiosity about the untold stories that a brand’s hotels and destinations offer, these hotels “stand out in a sea of sameness.”
Radisson Individuals has adapted its development and owner support efforts to the unique nature of its one-of-a-kind properties, emphasizing the flexibility that comes with a soft brand. For prospective owners and franchisees, the selling point is clear. It’s about the freedom to create unique experiences that stand out, supported by a corporate infrastructure that ensures consistent quality and active support. This combination allows us to create a truly unique guest experience while maintaining our strong commitment to service excellence.
In this exclusive interview, Mark Shalala, Choice Hotels’ Senior Vice President of Luxury Brands and Real Estate Development, discusses the strategies, innovations and investments that strengthen Radisson Individuals’ differentiators to the investment and travel communities. I’ll talk about it.
Hotel Investment Today (HIT): What indicators led Choice to take a closer look at the growth potential of soft brands in the boutique/independent owner base?COVID-19 to avoid partnering with soft brands Why are the owners, who have been battling it all, convinced that they are now ready to sign on?
Mark Shalala: Soft brands like Radisson Individuals give owners the opportunity to take advantage of growing customer demand at the best value. Like CBRE and others, we’ve seen a clear shift in traveler preferences for luxury hotel stays. We also found that many of these travelers are looking for a more authentic experience and are willing to pay a premium for hotels that can provide it.
Developers are certainly paying attention to this and are pouring investment money into this area. Soft brands are more attractive in this context due to their flexibility. It is much cheaper to adapt a luxury property to a soft brand identity than to pursue new construction. We believe that brands like Radisson Individuals are particularly attractive to smart investors because they are very focused on reducing costs and getting the most value from their assets. I know.
Our main target is independent and boutique hotel owners who want to preserve the unique character of their hotels. We are also looking at adaptive reuse opportunities and the possibility of converting traditionally branded hotels to soft brand concepts in key markets.
mark shalala
HIT: Who are your main targets in terms of owners and developers, and how do you promote your brand to financiers?
Sharara: Our main target is independent and boutique hotel owners who want to preserve the unique character of their hotels. However, given the explosive growth in demand in the soft brand segment, we are also looking at opportunities for adaptive reuse and the possibility of converting traditionally branded hotels to soft brand concepts in key markets .
HIT: What questions are these owners and developers asking you? What is their paint and how are they solving it?
Shalala: There’s a lot of interest in how Choice can support hotels as they convert to Radisson Individuals. Many owners and developers are looking for a strong, reliable partner who can help them maximize the potential of their properties and attract guests at the lowest possible cost.
We are uniquely positioned to achieve that because we have the toolbox to help other brand owners drive repeat stays from their guests and increase return on investment. By joining Choice, owners can maintain their hotel’s special identity while gaining access to our powerful distribution engine, cutting-edge technology solutions, a loyalty program of over 66 million members, and 89% of Radisson Individual brands. You can benefit from awareness.
HIT: What do Radisson itself, Radisson Individual, Choice’s other soft brands, and current and future owners think about the prerequisites a soft brand must have to attract target owners/developers in this space? Did you tell me?
Shalala: Choice was the first company to create the soft brand Ascend, and our acumen in this space is unparalleled. We learned a lot from that history, which inspired the relaunch of Radisson Individual.
The key lesson is to adapt to meet consumer needs. Recognizing that travelers are increasingly averse to cookie-cutter hotel experiences, we relaunched Radisson Individual to offer a more personalized experience with the features travelers value most. I will introduce it. This means these hotels must focus on providing the best possible guest experience, while fully embracing the character of their location through their design and the food and wellness experiences they offer.
Mark Shalala, Choice Hotels
HIT: How much was this relaunch about moving the needle and how much was it about diversifying Choice’s ownership and opening up new markets?
Shalala: In recent years, Choice has invested heavily in its pursuit of growth in the luxury segment. The company is gaining traction in this space with more than 700 luxury hotels open or scheduled to open under the Radisson America, Cambria and Ascend brands.
Against this backdrop, the relaunch of Radisson Individuals is particularly significant as it signals an expansion of the luxury segment following the relaunch of Radisson Blu earlier this year.
It’s an exciting opportunity to have owners join our leading platform to deliver hotels that meet the changing expectations of travelers. Examining the situation, we found that in most markets, competitive groups of luxury and top luxury soft brands outperformed branded luxury groups. This reflects the changing tastes of travelers and their willingness to pay more for products like Radisson Individual.
HIT: Choice’s investment in the luxury market segment provides its loyal customers with a menu of options from which they can choose for themselves. No two hotels are the same, but how can you ensure that the standards and service applied to hard-branded hotels maintain consistency in design and service for soft-branded hotels?
Shalala: Part of what we’ve done with this relaunch is to help future owners and developers of these hotels articulate what their hotel should offer in line with what Radisson Individual should be. The key is to introduce the pillars of your brand in a way that makes them understandable. Our target audience expects each hotel to be individually unique. But you can also expect each to offer high-quality service, offer on-site facilities such as wellness centers and pools, and provide an authentic experience at the destination, including restaurants serving local cuisine. .
HIT: What’s in the pipeline? How many hotels will be added by the end of 2025?
Shalala: We currently franchise 15 hotels across the United States. Our goal is to significantly expand this and bring these hotels to major cities and popular leisure locations. We are in advanced negotiations with a number of hotels in the United States in a variety of markets, including several high-end leisure destinations and semi-urban locations. Although we expect our growth to come primarily from conversion, we are also considering adaptive reuse projects.
Mary Scoviak is the Director of Custom and Design Content for Hotel Investment Today by Northstar.
The views and opinions expressed in this content do not necessarily reflect the opinions of Northstar or Hotel Investments Today by Northstar Travel Group and its affiliates.
