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Brand Repositioning: A Hotel Case Study

The Company

A large international hotel franchisor

The Challenge

The company wanted to reposition its midscale lodging brand to make it more competitive. Management aimed to meet unfulfilled needs of its guests but was unsure which factors—such as site selection, guest offerings, and physical assets—would most profitably reposition the brand relative to its competitors.

The Solution

The company used APT's software to evaluate the extent to which these factors would improve the performance of the brand relative to its targeted competitors. In particular, APT quantified the degree to which the locations of the existing hotels accounted for the brand’s performance gap relative to its competitors. Both the hotel locations and the hotel size proved to be important reasons for the gap between the performance of the brand and its competitors.

Once APT isolated the degree to which location characteristics drove RevPAR underperformance, management planned to pilot a series of different brand offerings to significantly re-position the brand. Examples of new offerings included new lobbies and new guest amenities.

The Results

The hotel company used APT's solutions on an ongoing basis to measure and improve the effectiveness of its new brand offers, as well as to target, measure, and refine a variety of promotion and advertising strategies.

From the re-positioning, the organization generated over $25MM in net present value for owners.
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