A “Brand-First” Approach to Hotel Development

Feb 21

Real estate development requires significant effort to see a project through to completion. Through the process, one must focus on critical things such as defining and assessing the land, creating a financial pro forma and budget, securing financing, and finalizing architectural and design plans. It’s truly a monumental process – not for the faint of heart. But there’s an important step missing from many real estate developments — brand development.

As a partner at Longitude; a hospitality branding design group, I see so many hotel developments, deep into a development timeline, that lack a brand vision. Before undertaking the development process, it’s critical to consider the brand vision of the property. This vital step is important because, in doing so, it will unify and strengthen every decision along the way.

Often, the “brand” discussion doesn’t occur until all of the decisions have already been made, and if those decisions were made under the wrong premise or with an unclear vision in mind — this could be disastrous to the overall success of a development.

The amount budgeted for branding in real estate developments rarely reflects the important role that it plays in consumer decision-making.

The amount budgeted for branding in real estate developments rarely reflects the important role that it plays in consumer decision-making. Consumers care about what a brand represents, how it connects, and what it means to them. But too many projects fail to prioritize their brand both in timing and in budgetary consideration.

Developing Without a Story

Without prioritization of brand development, a real estate developer can quickly begin making decisions and spending loads of money without a thought about future brand implications.

I’ve seen far too many real estate developments, large and small, spiral out of control with the brand image they hold. As they desperately try to maintain their brand identity, narrative, and positive perceptions in the market, oftentimes it’s too late.

Before they realize they need help with their brand, the damage has already been done. This is often why you see so many businesses go through a renovation and repositioning process, hoping to shed the negative light that has exposed them.

Developments With a Story

On the other hand, I’ve seen a number of developments and businesses start with developing and curating their brand before they even put pencil to paper or broke ground. From the very beginning, these brands considered their brand, positioning, ideal customers, and brand narrative approach.

If you focus on developing and curating your brand from the beginning, it will inspire others to do the same. Think about it: Graduate Hotels, Ace Hotel, and Shinola Detroit Hotel are inspiring brands that have influenced countless other developments.

If your brand isn’t important to you, then how can you expect it to be important to your customers and guests?

If you fail to budget time, resources, and money into the development of your brand, you can expect it to be an afterthought. If your brand isn’t important to you, then how can you expect it to be important to your customers and guests?

The Case for a "Brand-First" Approach

A thoughtful branding process can result in significant economic benefits. It often doesn’t take very much time, and, in the grand scheme of things, makes a lot of sense financially.

Here are some examples of how brand strategy and development are important from the beginning of a project.

Understand Your Guest Better

The most important consideration for any business — especially hotels — is its customer base. Who is your ideal customer? What does he or she value above all else? Is the customer price-oriented or luxury-seeking? Does this person like to save money or splurge? Are customers concerned about speed, convenience, and efficiency, or do they want customized service and experience?

Knowing these types of details about your guests is more important than you may think, and should lead you to make very specific decisions as it relates to your business.

More Focused Market and Traveler Studies

Every new development or redevelopment should consider including this step, although it is not always a part of the process. Data gathered can be used in many ways, such as tracking peak travel periods throughout the year, identifying the demographic breakdown of travelers, tracking time spent in an area, or tracking how much money travelers spend while visiting.

However, if you look at this data with a strategic mind, you can find gaps and opportunities in the market. For instance, if you find that a large majority of visitors to the area are family groups and retired people, then you may consider if your concept could focus on younger couples. In doing so, you may be filling a need that hasn’t been identified by others and finding a special niche to dominate in your market.

The Benefit of a Brand with Conviction

Core values, guiding principles, or the like, all come down to what a brand stands for and cares about most. When a brand’s back is against the wall, it can call upon its core values to inspire it in difficult times.

If a brand has a commitment to sustainable tourism and design, it will always prioritize eco-friendly and culturally sustainable design choices no matter the cost. On the other hand, a brand that prioritizes innovative technology will always invest in personnel, processes, and future technology that will make guest experiences even better.

When you have clear guiding principles and convictions for your brand, it makes it so easy for your team and your customers to know what you stand for.

Positioned for Success

In my book Future Hospitality, a lot of attention was given to the topic of positioning. Being positioned in the right place is a key component of any business, yet often the most overlooked or misunderstood.

Many people mistake their product differentiators as their positioning strategy.

“We have a pool, yoga room, and coffee bar; that is what makes us unique!” While amenities and product features are important, those are not a positioning strategy.

A solid positioning strategy gives your audience a reason to listen, care, and pursue your brand. It provides a reason that your brand deserves attention in the never-ending sea of competition.

A strong positioning strategy should highlight the following: (1) your relevance to consumers, (2) your difference in the marketplace, (3) your strengths that are genuine.

A More Thoughtful Guest Experience

A thoughtful brand vision and strategy should inform every aspect of your guest experience, and be seen through every guest touchpoint. This can include everything from the color you put on the walls to the aroma of your lobby.

Your FF&E and OS&E can and should be thoughtfully executed based on your brand vision, narrative, and identity. But it doesn’t stop on-premise – your brand can impact the physical and digital experience of your business.

How pleasant is the booking experience, and how satisfying is the checkout experience? What feelings does your brand evoke in guests? What’s the service approach that your team members provide to your guests, and how should every guest feel when doing business with you?

Your brand strategy will guide your guest experience if done correctly. Without a brand strategy, how will a development team feel equipped to make these types of decisions?

In Closing

It’s evident that defining a brand vision is important, and we've all seen that the best brands in the market prioritize this. In order to implement this thinking into your next development, it simply takes your effort. Before jumping the gun with architecture or interior design; before developing a marketing budget; and certainly before breaking ground; I encourage you to think about your brand and the points I’ve brought up in this article.

We’ve led many businesses through this process at various stages in development, and we’ve always seen that when it comes to considering your brand — the earlier the better.

Jeremy Wells