What is the meaning / definition of Dual-Brand Hotels in the hospitality industry?
Also referred to as two pack hotels, dual-brand hotel is a term used to describe a property that combines and houses two hotels which operate separately. Usually these types of hotels combine two brands from the same chain. The economic advantage of this set-up is that both hotels can cater to one demographic specific to their offerings, but are able to share resources like back of house operations. By sharing many resources and expenses, the Dual Brand hotels can reduce their operational costs drastically. The most popular pairings of brands are of select-service and extended-stay hotels under one roof. The dual-brand model offers developers and owners a chance to command a larger market share, maximising potential cash flows and producing a greater return to the land.
For example, Hilton hotels commonly have Hampton Inn & Suites and Homewood Suites in a Dual-Brand Hotel to cater to both leisure and business travellers who have separate needs. Most of these properties share one general manager because they are too small to accommodate two general managers. However, these properties usually have two separate check-in desks and separate amenities like lodging and dining areas. There is also examples of three back or tri-brand hotels, however, these hotels are uncommon.
- Affiliated Hotels
- Two pack hotel