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Why Hotel Chains Have So many Different Brands

| Published on April 23, 2019

Whatever successful companies do, there is a proper strategy behind it, the Hotel industry has grown immensely in past few years and one of the major reasons is attracting the right audience using fresh ways.

Marriott Hotels which had 19 hotel brands merged with Starwood which had 11 in 2016. They didn’t change any brands after the merger.

The number of independent hotels is declining very fast. Along with Marriott’s 30, AccorHotels, Hilton and InterContinental Hotels Group – have 54 between them. This makes us wonder why Hotel companies have so many brands? to know the answer below is the explanation.


To expand target audience

Hotel companies don’t want to capture only a particular set of customers. With having a single brand, it becomes difficult to do so. To focus on every type of traveler which includes business travelers, long term stays luxury, they prefer making different brands.

To save money

When big Hotel companies buy the smaller ones, they try to keep the costs of the merger to as low as possible. Changing names needs a big investment of money so companies avoid this.

Maintain loyality

There are a lot of customers who keep a memory of their favorite hotels, changing names can bring a big decrease in the revenues the old hotels have and some don’t book the same hotel after name change because they think that new name will change them more.

Do you know more reasons like this? DO let us know in the comments section.

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