How soft brands are quietly revolutionising hospitality

Over the last 15 years, soft brand collections have subtly shaken up the hospitality sector, offering the best of both worlds for many hotel owners – a route that helps them boost their bottom line without losing their hotel’s identity.

While soft brand offerings such as the Luxury Collection, which was acquired by Starwood and now part of Marriott, helped pave the way, the concept can be traced back by nearly a Century to the foundation of Leading Hotels of the World, and is something that international hotel groups have long since embraced to varying degrees.

Such is the demand from owners for bespoke and flexible branding solutions that many of the most successful global operators now offer a range of soft brand collections. Essentially, creating distinct soft brand collections allows hotel owners at the higher end of the leisure market to retain their hotel’s individuality and distinctive design approach, while enjoying essential brand support behind the scenes. The trend also reflects the growing shift towards authentic and one-of-a-kind leisure travel experiences.

That said, given moves earlier this year by other industry players to broaden the soft brand reach to encompass midscale properties, it will be interesting to see whether the concept succeeds in other segments and whether other groups follow suit. 

Nevertheless, the soft brand collection route isn’t right for everyone, and a ‘one size fits all’ approach can never work for all stakeholders. For example, when Albert Galea, group CEO of Bay Street Group, was looking for the right fit for their Malta hotel, it was a combination of the Hyatt Regency’s design and compatibility with the local market, coupled with the brand support and flexible approach, that swung the deal. 

Fortunately, the broad range of upscale and luxury ‘hard’ options across the industry provides hotel owners with the choice they need to determine which brand will work best for their asset and its market, as well as their creative ambitions and desire for individuality.

Since joining Hyatt’s development team in 2016, I’ve been struck by the entrepreneurial spirit shared by so many of the owners who approach us. Their passion and drive to deliver a property that’s personal to them shines through, and – whilst they have the overarching vision for their hotel – they increasingly look to bigger groups to help them drive revenue.

This means that some hotel owners will incorporate a mix of soft – as well as hard – brands within their portfolio, and we know that the flexibility to choose between these. A decision often closely linked to their asset’s leisure versus business positioning can be a considerable factor when it comes to choosing the right brand partner.

Going down the soft brand collection route provides owners with the freedom to fully flex their creative muscles without the need to conform to traditional brand guidelines – all while being welcomed into the group’s family. After all, the only shared element across the many properties in these collections is that their offerings are different to one another! 

In return, having listened to these owners’ visions, we can help identify which collection best suits their needs, and then support their passion with our commercial strength. This smart and collaborative approach ultimately ensures we can work together to create a product that meets the expectations of an evolving and increasingly sophisticated traveller.

When we work with owners and franchisees, we like to feel that the sum of our combined expertise is greater than the whole. Smart owners know it’s not enough to simply create something beautiful and hope that people will come – having the backing of long-term hospitality experts that can connect their independent hotels to strong distribution channels, a loyal customer base, and the right team of advisers is what will help turn that vision into a success story.

The pandemic additionally underscored the power of brand partnerships, including soft brand collections, whether through leveraging supplier purchasing power, enhanced safety measures, or the subtle reassurance of staying somewhere associated with a trusted major hotel group.

Critically, the continuous growth of these brands, along with the frequent debuts of new collections, is in direct response to market needs driven by guest demand for differentiated experiences – a trend that is here to stay, given Gen Z’s and millennials’ more experimental approach to travel and desire for new or unique experiences.

So, whilst there will always be strong demand for core brands, it seems the trend towards soft-branded solutions with distinct brand personalities and a more flexible approach is one we’ll continue to see even more of across Europe, as these collections continue to meet the aspirations of our guests and deliver a return on capital to our owners and franchisees.