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Chekitan S. Dev | January 22, 2020
By Chekitan S. Dev and Eva Steiner
Twin branding of inns has change into a rising trade observe. Past the potential advertising advantages of the dual-branding technique, this paper assessments whether or not dual-branded inns function extra effectively than comparable single-branded inns (and subsequently ship higher bottomline outcomes). Evaluating a proprietary longitudinal information set on the working efficiency generated by dual-branded inns within the U.S. in opposition to a set of comparable single-branded inns, we doc blended outcomes. Whereas dual- and single-branded inns obtain related occupancy percentages, dual-branded inns generate increased common each day price and income per out there room. That stated, dual-branded inns have related departmental bills to these with a single model. Though dual-brand inns obtain some financial savings in undistributed bills, for instance, administrative and basic (A&G) and upkeep, they incur increased IT and advertising bills. Consequently, gross working revenue margins are barely decrease in dual-branded inns than in single-branded inns. In sum, we doc restricted working effectivity good points in dual-branded inns in comparison with single-branded inns. Nonetheless, we acknowledge that the novelty of twin branding might imply that we have to enable extra time to permit these inns to attain stabilized operation.
View the Cornell examine.
The authors are grateful to John Corgel, Robert Mandelbaum, Mark Woodworth, the CHR editor, and an nameless referee for constructive suggestions on earlier variations of this report. We thank CBRE Motels for offering the information on U.S. lodge working efficiency.
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