Assignment
Articles about brands and brand image often focus on existing brands so it is interesting to learn about a company inventing and building its brand. Hotel companies are developing new brands for several reasons. Big hotel chains already have so many properties in cities that they need to launch new brands to grow. Tastes changed and millennials want hipper rooms, lobbies and restaurants. Many hotels do not own their properties but franchise the brand or operate them for owners. The growth in brands is also driven by the success of the industry with occupancy rates up to 65.4% in 2015 from 57.6% in 2010. Average daily rates also increased.
Read the WSJ article: How Hotel Companies Launch a New Brand
Answer the following discussion questions:
1. List and discuss the factors driving growth in new brands in the hotel industry.
2. Discuss how the Pendry brand was developed. What are some of the decisions that affect the brand and its image?
3. How does the Pendry brand differ from the Montag brand?
4. How do hotels or any brand identify the potential for a new brand and ways to develop it without cannibalizing existing brands?
5. The numbers indicate higher occupancy rates and average per night prices. What are some of the possible competitive pressures a hotel can face over time affecting its financial performance?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.