Skift Take
Boutique hotel companies like Proper Hospitality could be an unexpected winner in the hotel industry race to ink branded affiliation deals with existing hotel owners coming out of the pandemic.
Just because the executives behind boutique hotel company Proper Hospitality have no intention of selling to a major global hotel brand doesn’t mean they can’t take a page from the big-brand playbook.
Proper Hospitality operates the Proper and Avalon hotel brands in markets like San Francisco, Austin, and Palm Springs. But the company also launched a new brand, Hotel June, this summer in Los Angeles. While a global pandemic may seem like the worst time to introduce a new hotel concept, the Proper Hospitality team actually views Hotel June as one that will appeal to independent hotel owners looking to take on a brand affiliation.
Companies like Marriott, IHG, and Wyndham tout this kind of independent-to-branded shift, known as a conversion, as a way to grow their global portfolios even during the downturn in travel. Travelers will crave the familiarity of a major brand coming out of the pandemic, the thinking goes.
But Proper Hospitality thinks conversions can similarly fuel growth in the boutique sector.
“I think the big brands are going to grow significantly out of this, but I think we’re uniquely positioned to grow maybe even more,” said Brian De Lowe, co-founder of Proper Hospitality. “In the current travel climate, [Hotel June] really represents what I think consumers are looking for and what investors and potential partners are looking for.”
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