The Pros and Cons of Rebranding a Hotel Group.

As I went through several rebranding initiatives in the past with other hotel groups, reading the announcement of the very successful Jumeirah rebranding a couple of days ago, made me brainstorming about the pros and cons of such an initiative in our industry, the purpose of doing so and the actions to take or to avoid in order to do it right.

It turns out that in the dynamic world of hospitality, rebranding a hotel group can be a strategic move to stay relevant, attract new customers, and adapt to changing market trends. However, this transformation comes with its own very particular set of pros and cons, particularly when it comes to preserving the brand's original identity and DNA. Exploring and brainstorming the complexities of this process to understand how to achieve positive evolution while maintaining continuity is always a good thing to do, even when it is not (yet) on the roadmap.

A new brand identity can rejuvenate the image of a hotel group, attracting attention from both existing and potential customers. It offers the opportunity to present the group in a new light, shedding any outdated perceptions. It also allows hotel groups to realign their image with evolving market demands and consumer preferences. It enables them to stay competitive in a rapidly changing industry by addressing emerging trends and customer needs, especially nowadays.

Rebranding can facilitate the expansion into new markets or the introduction of new hotel concepts. It provides the flexibility to tailor the brand to different audiences or geographic locations, catering to diverse tastes and preferences.

In a crowded marketplace, rebranding can help a hotel group stand out from the competition. By carving out a distinct identity and positioning, it becomes easier to communicate the group's unique value proposition to consumers.

Nevertheless changing a well-established brand name risks diluting the accumulated brand equity and recognition built over time. Customers may feel disconnected or confused by the sudden transformation, leading to a loss of loyalty.

Rebranding involves significant financial resources, including the costs of logo redesign, marketing campaigns, and operational adjustments. The upfront investment may not always yield immediate returns, posing a financial risk to the hotel group.

Implementing a rebranding strategy requires coordination across various departments and properties within the hotel group. This process can disrupt day-to-day operations, affecting staff morale and customer experience during the transition period.

Also, overzealous rebranding efforts may erode the unique identity and heritage that distinguished the hotel group in the first place. Straying too far from the brand's original DNA risks alienating loyal customers who were drawn to its authenticity and tradition.

Thus, to ensure a successful rebranding while preserving the essence of the hotel group, certain limitations and guidelines should be observed:

1. Maintain a deep appreciation for the history, values, and traditions that underpin the brand's identity. Any changes should build upon this foundation rather than discard it entirely.

2. Embrace a gradual approach to rebranding that allows for incremental changes over time. This ensures continuity while still accommodating the need for adaptation and innovation.

3. Involve key stakeholders, including employees, customers, and shareholders, in the rebranding process as their input and feedback can provide valuable insights into what aspects of the brand should be preserved and what areas can be improved.

4. Maintain consistency in messaging and communication throughout the rebranding journey. Clear and transparent communication helps manage expectations and fosters trust among stakeholders.

At VERTU Hotels and Resorts and VERTU Hospitality, we are not there (yet) as our identity remains a perfect equilibrium of beautiful hotels, services excellence, tradition and modern approach to true hospitality. Never the less, reinventing ourselves all the time is what keeps us alive, progressing, up to date and forward looking.

No brand should ever settle for the ordinary, but every brand should always remain consistent and cautious in case of change of identity.

After all, a brand is not (only) a logo, it is a promise !

ps : I love this photo by Davisuko which reflect perfectly a hard change in color from the blue outside to the orange inside, a unique transition.