What is a soft brand hotel?

A soft brand is an affiliation between an independent hotel and a hotel chain which can provide hotel operators with lower costs and added flexibility when compared with traditional franchise agreements. The arrangement allows independent hotels to retain their existing branding and identity while benefiting from the chain’s marketing and distribution resources as well as other potential economies of scale.

Soft brands have grown in prominence in recent years as hotel chains have diversified their offerings to meet changing consumer behavior. To better address the needs of modern travelers, especially millennials, some hotel chains have switched focus from uniformity and brand standards to uniqueness and personalization when developing their portfolios. This has enabled new opportunities for independent hotels to affiliate with larger entities to grow market share.

Fueled by modern traveler needs, there has been a rise in popularity of boutique hotels and lifestyle brands—hotels which can stand out against traditional brands due to their unique characteristics. This growth has facilitated increased interest in soft-branding arrangements between independent hotels and chains. If done successfully, these agreements can lead to mutually beneficial outcomes for both parties.

Soft Brand Hotel FAQs

What are the benefits of soft brands for hotels?

After cost control, one of the main benefits of soft branding for independent hotels is accessing the chain’s extensive marketing and distribution networks. This offers opportunities to secure new business through affiliation with the chain that might not be possible otherwise. Benefitting from the chain’s corporate agreements and loyalty or reward programs are a few examples how soft brand hotels can generate new business.

The agreement can also lead to lower commissions from an online travel agency (OTA) because of the chain’s stronger bargaining power—an added advantage which can further benefit the hotel’s bottom line.

With traditional franchise agreements, it is common for a hotel to enter a Product Improvement Plan (PIP) to adhere to specific regulations and standards required by the chain. For some hotels, this can be an onerous and costly process. Meanwhile, soft brand agreements tend be based on less strict agreements, which provide owners and operators with more operational flexibility and independence. This includes retaining more individual features associated with the hotel, especially, the name of the hotel itself.

The increased autonomy means that hotel owners and operators can also have more sway in the day-to-day operations of the hotel, which tends to be more appealing for stakeholders compared with franchising directly.

What are the benefits of soft brands for hotels

Highlighting their growing popularity, soft brand supply growth in recent years has outstripped other hotel types in many global markets. Consequently, there is an expanding list of soft brand collections, which are typically categorized as upper upscale class.

Marriott’s Autograph Collection and Curio Collection by Hilton are two well-known examples of soft brands.

Launched in 2010, the Autograph Collection currently comprises more than 200 hotels worldwide, including properties such as The Cosmopolitan of Las Vegas and London’s Threadneedles.

Meanwhile, Hilton’s upscale soft brand created in 2014 currently covers around 100 global locations. A few well-known properties include The Westminster London and Hotel del Coronado, a Victorian property in California which dates back to the 19th century.

Other popular soft brands include Starwood’s Tribute Portfolio, The Unbound Collection by Hyatt Hotels and, one of the newer entries to the market, voco hotels by IHG.

Cultural and historic features are common among soft brand hotels. One example of a historically significant property which has retained its existing brand identity and story while being part of a soft brand is New York City’s Lexington Hotel. Part of Marriott’s Autograph collection, this Art Deco building has welcomed many famous guests over the years, including Frank Sinatra and Marilyn Monroe.

Other common features of soft brands, which act as unique selling points, are food & drink facilities and physical attributes such as rooftop terraces and health suites. Noteworthy examples include The Gantry in London – part of Hilton’s Curio Collection – with its rooftop restaurant and bar offering panoramic views of London and Ravel Hotel, part of Wyndham’s Trademark Collection, with its vistas of the Manhattan skyline.