Soft brands continue to elevate the evolution of the hospitality landscape

Hospitality is not one-size-fits-all—and that goes for both owners and guests. Travelers enjoy curating their own experiences, and the hotels that wish to do the same are often forced to pursue independent ownership to avoid being locked into strict brand standards. However, these operators take on increasing levels of risk as they adapt to changing hospitality norms without branded support. For this reason, more hotel companies are investing in soft brands capable of folding independent hotels into their portfolios, creating a win-win scenario for operators and travelers looking to try something new.

Soft-branded hotels retain their iconic names, identities, designs, established styles and independent spirit while accessing expansive branded support networks. Most importantly, hotels under these soft brands can be booked directly on Brand.com, creating more avenues for their desired guests to find them. To that end, Sonesta launched two new segment-defining soft brands in 2023, Classico and MOD. Both brands are designed for independent-minded operators committed to embracing the unique aspects of their property and its location.

The first of these brands, Classico, A Sonesta Collection, is positioned in the upper-upscale segment and was created to capture the local authenticity and global appeal of some of the most unique independent properties on the market. Miami’s 40-room Z Ocean Hotel was the first to join this collection.

This all-suite property mixes South Beach escapism with the accouterment of a Mediterranean village–at once irreplaceable in its location but challenging to fit into the expectations of a mainline Sonesta brand. Trying to fit this property into an existing box would be a mistake. And so, Sonesta made a new box for it, removed the label and dubbed it Classico. The Z Ocean Hotel is the first Classico on the market, but more deals of this type are on the horizon.

According to Brian Quinn, chief development officer, Sonesta, there is more to come. “Last year, we took steps to welcome the first soft-branded hotels into our portfolio, and they are but a glimpse into the potential we see in this arena,” he said. “Sonesta Franchising debuted in the U.S. in 2021, and today, it is host to 17 industry-leading brands. With Classico, we can include more upper-upscale, independent hotels in our strategy throughout the new year.”

Sonesta’s second new soft brand introduced last year is MOD, A Sonesta Collection, designed to focus on modern lifestyle trends, high-end design and operational flexibility. Travel has become more accessible worldwide, and with that accessibility comes higher guest expectations. Travelers desire to maintain their routines on the go, from dietary expectations to nomadic blends of work and wanderlust. MOD was designed to help upscale independent hotels keep pace with these needs while providing their unique blend of curated food & beverage and eclectic design.

Sonesta’s first MOD property positioned iin the upscale segment is the Hotel 11 in Calgary, Alberta, Canada. The hotel provides expansive views of the Rocky Mountains and is located within its local area at the intersection of hiking, shopping and travel hubs. Both MOD and Classico hotels are accessible through Sonesta’s website and benefit from access to the brand’s extensive distribution channels and services. Additionally, hotels under each soft brand are also connected to Sonesta’s loyalty program, Sonesta Travel Pass, a feature that is often out of reach for independent and boutique hoteliers.

When independent hoteliers have access to these capabilities, they can compete with branded hotels on a more level playing field during a critical recovery period. Hotels under the Classico and MOD umbrella will have access to all the benefits enjoyed by independents, with greater freedom to operate their way and the ability to connect with their local community while gaining access to a branded support structure backed by extensive experience and knowledge. According to Quinn, this strategy is helping the industry’s most unique properties maintain their hospitality roots while evolving to meet the business’s current and future needs.

“Before we launched MOD and Classico, Sonesta’s brand portfolio had white space which could have been occupied by independent hotels looking to operate with fewer brand standards,” he said. “We took steps to launch these soft brands in response to feedback from independent owners and operators looking to leverage the existing equity in their property name or its unique attributes. Rather than require them to plant a flag on their facade, which may impact their identity, we welcomed them into our ecosystem with a little hospitality.”

This advertisement is not an offer to sell or solicitation of an offer to buy any franchise. Offering by Franchise Disclosure Document only where required by law. © 2023 Sonesta International Hotels Corporation, 400 Centre St., Floor 3, Newton, Massachusetts, 02458, USA.

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