Trend: The rise of the dual-branded hotel

By Sophie Witts contact

- Last updated on GMT

The dual-branded Crowne Plaza and Holiday Inn Express will open at Heathrow's T4 in 2018
The dual-branded Crowne Plaza and Holiday Inn Express will open at Heathrow's T4 in 2018

Related tags: Intercontinental hotels group

The number of ‘two-in-one’ hotels offering multiple brands under one roof is set to rise in Europe, according to a new HVS report.

A growing cluster of operators are launching merged sites, where two brands open either next door to each other or in the same building.

The properties feature separate entrances, front desks and elevators, but share guest amenities and staff.

Both hotels can split construction and operational costs, making the developments increasingly attractive to developers.

HVS said the model was a more cost effective way for groups to offer guests a wider range of options and appeal to a broader customer base.

“The dual-brand hotel concept is likely to grow further as investors become more familiar with it,” said Nicole Perreten, associate at HVS London.

“It works best when the two brands have a limited degree of overlap in their customer base, but their positioning is not too far apart either – the difference between them needs to be in the price point, length of stay, or the target audience’s purpose of visit. “

The model is being rolled out in the UK by InterContinental Hotels Group (IHG), which is to open a 433-room Holiday Inn and 190-room Staybridge Suites at Heathrow in 2018.

A 300-room Crowne Plaza and adjoining 450-room Holiday Inn Express is also set to launch at the airport's T4 in 2018.

Triple launch

HVS’s report - titled ‘A dual to the death or a dual in the crown?’ - predicts that guests could soon be offered a choice of three brands in one location.

AccorHotels led the way by opening Pullman, Novotel and Mecure sites in the same development in Nanchang, China, earlier this year.

"The concept is still evolving and could even become a three-brand offer in some instances, as we have already seen with AccorHotels,” said Sophie Perret, director at HVS London.

“We could also see the concept expand into the luxury or lifestyle hotel sector."

Other dual developments include Marriott’s Courtyard/Residence Inn in Munich, the Ibis/Novotel in Paris, Crowne Plaza/Holiday Inn Express in Aberdeen, and the Hilton/Hampton by Hilton in Bournemouth.

Related topics: Business, Hotels, Trends & Reports, Venues

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