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Dual-Branded Hotels - What Every Owner or Developer Should Know
By the JMBM Global Hospitality Group®
Hotel Lawyer on the Pros and Cons of dual-branded hotels
Dual-branding of hotels in a single structure or complex is quite a trend in the hotel industry and has been picked up by the popular press.
The hotel lawyers in JMBM's Global Hospitality Group® have been working on dual-branded hotels for some time, so we thought we would share some our observations on the pros and cons of this approach.
My partner, Bob Braun, has worked on many hundreds of hotel management agreements and franchise agreements, and has written this article to provide an important update on this subject.
One building — Two brands
Two sides to the dual-branding coin
USA Today recently reported that hotel chains are increasingly offering owners and developers a "two-for-one" deal - a single building housing two separate hotels. While this is not entirely new (hotel companies have been placing multiple brands adjacent to each other or sharing facilities for many years), the trend of "dual-branding" appears to be accelerating. JMBM's Global Hospitality Group® has worked on a number of these projects, and see both benefits and challenges in this trend.
Here are a few of the considerations that we have noticed.
Benefits of dual-branding hotels
Challenges of dual-branding hotels
More information about branding and management
The right hotel brand and management agreement can be the difference between success and failure of a hotel. The Global Hospitality Group® at Jeffer Mangels Butler & Mitchell LLP has negotiated, renegotiated, litigated and advised on more than 1,000 hotel management and franchise agreements all over the world. To see how we help clients in this arena, please click here to see our brochure.
We also have a rich library of free resources available on most topics of interest to people dealing with hotels. These are all available at www.HotelLawyer.com.
For blog articles, scroll down any page of HotelLawyer.com and look on the right side. For example, you can see all the blog article on "Hotel Franchise & License Agreements" by clicking that link. The same goes for "Hotel Management Agreements" or any other subject you see listed down the right hand side of HotelLawyer.com.
You will also find our free handbooks on HotelLawyer.com under the "Resource Center" tab, such as
The HMA Handbook, Hotel Management Agreements for owners, developers, investors and lenders
And much more.
Robert Braun is a senior member of the Global Hospitality Group® at JMBM. Mr. Braun advises hospitality clients with respect to hotel management agreements, franchise agreements and operating issues. He also advises on transactional matters, including entity formation, financing, and joint ventures, and works with companies on their data technology, privacy and security matters. These include software licensing, cloud computing, e-commerce, data processing and outsourcing agreements for the hospitality industry. He is a member of the International Association of Privacy Professionals. Contact him at 310.785.5331 or email@example.com.
This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We've done more than $60 billion of hotel transactions and have developed innovative solutions to help investors be successful in bidding for hotel acquisitions, and helping investors and lenders to unlock value from troubled hotel transactions. Who's your hotel lawyer?
Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,300 properties all over the world. For more information, please contact Jim Butler at firstname.lastname@example.org or +1 (310) 201-3526.
Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment GroupTM. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why.
Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.
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