2.1 context of the U.S. lodging industry (1994–2012), the

2.1 Review of
Literature

(Yi-Lin Tsai, 2015) In
the context of the U.S. lodging industry (1994–2012), the authors quantify the
effects of the two main factors driving the rebranding effects identified by
the theoretical branding literature—(1) the brand effect and (2) the
interaction effect between the product (the hotel property) and the brands
involved—on occupancy rate and other hotel performance indicators. They find
that, on average, rebranding results in approximately a 6.31% increase in
occupancy rates; 60% of this effect can be attributed to the brand identities
(e.g., Holiday Inn) before and after rebranding while the remaining 40% is
attributable to the interaction effect. The authors also find heterogeneity in
the property–brand interaction effect of rebranding along various observable
characteristics of the hotels. They assess the robustness of the results to
various model assumptions and alternative instruments; in addition, they use
matching estimators for analysis and exploit rebranding as a consequence of
hotel mergers as a means of measuring rebranding effects. Finally, the authors
consider the impact that rebranding might have on competitors’ properties.
Their approach to measuring rebranding effects can be applied broadly to firms
and industries experiencing a decoupling of the individual components of their
value chain.

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(Dale Merrilees, 2013) This study aims to present an
integrated review of the major enablers and barriers to corporate rebranding,
with special attention to contextual factors. Through an examination of 76
cases in 61 articles, the paper contributes a new general model of corporate
rebranding. Unlike previous models of corporate rebranding, the new model
incorporates both single- and multi-phase enablers and barriers. Critical to
successful corporate rebranding are the identification and application of six
major enablers, including strong rebranding leadership and coordination among multiple
functions and stakeholder groups. The new model suggests directions for future
research, and the paper discusses how managers can use the model to inform
rebranding practice and improve corporate rebranding outcomes.

 

(Huang, 2010) In this study it was
seen that existing literature has shown that effective branding/ re-branding
can positively impact customer purchase preferences and intentions,
satisfaction and loyalty and a firm’s financial performance. Building on these
links, this paper investigated if there was a significant improvement in the
Holiday Inn Singapore Orchard City Centre’s guest satisfaction (OSAT) and
financial performance after its rebranding. Paired-samples analyses were
conducted on the hotel’s pre- and post-rebranding guest satisfaction,
occupancy, average daily rates (ADR), revenue per available room (RevPAR),
revenue and net operating profit (NOP). Overall, the results revealed that
after the rebranding, HISOCC’s occupancy and RevPAR increased significantly;
ADR and OSAT reflected non-significant increases; while NOP reflected a
non-significant decrease. The non-significant results may be explained by
anomalous performance in key hotel operational areas and slow demand during
Lunar Chinese New Year in the post-rebranding period. While this paper only
analyzed one rebranding case study, it is noted that the results do provide
support to the existing literature on branding/rebranding, guest satisfaction
and loyalty, and financial performance. More empirical studies that analyze
hotels’ performance over longer time periods post-rebranding, the
inter-relationships between the constructs of hotel brand equity, satisfaction
and financial performance, and other extraneous factors are recommended to
deepen the understanding on the impact of rebranding on guest satisfaction and
financial performance.

(BJORN HANSON, Hotel Rebranding and Rescaling Effects
on Financial Performance, 2009) This is an
exploratory study of ninety-five hotels that rebranded or rescaled their
operations revealed the possibility of long-term financial benefit after the
change. In many cases the hotels saw an initial decline in financial results,
but that was followed by a gradual recovery. Hotels that moved upscale
generally saw increases in average daily rates. Hotels that merely changed
brands without also changing their scale reported no significant change in
financial results.

(Kalnins, 2005) The study described
in this report examined eight hotel chains that are mostly franchised and two
chains that are mostly company owned. The study finds that when franchisors
approve new name-brand hotels in the vicinity of existing hotels, these new
hotels do, indeed, cannibalize the incumbents’ revenues. Rather than apply a
fixed mileage distance, the study looked at new properties that are within ten,
fifteen, or twenty chain hotels away from the existing property.

(Churchill, 2016) In this article the
author says that rebranding of hotels is done so that higher revenues can be
earned due to the brand it associates with. The facilities offered to the
customers are also better when under the new brand name. It is said that
rebranding mostly occurs in the US and UK. There is a huge risk however when
hotels switch brands as this may upset regular customers and the hotels may end
up losing business. However, they will eventually be people to stay in the
hotels and who return to the hotel even if under a new name. The author ends by
saying that rebranding seems to be a never ending story.

(Manurung, 2014) This article speaks
about the rebranding of Indonesia. Despite the fact that Indonesia is a vast
country with thousands of islands and more than 250 million citizens, its
tourism figures are middling at best. Since country political reform in 1998,
political unrest, a handful of terrorist attacks, and the resulting negative
press in the middle of the last decade resulted in plummeting numbers of
incoming tourists. While regional neighbouring rivals such: Thailand and
Malaysia, due to geography size less than half the size of Indonesia, get more
than twice the international tourists each year. Even, compare to Singapore, a
city state, but has stronger figures to attract foreign tourists significantly.
Thus, to counteract its disappointing showing, Indonesia has gone into
tourism-upgrade mode. The country has angled to rebrand itself as a more
attractive desirable destination by coining the new slogan of ‘Wonderful
Indonesia,’ and promoting MICE (meetings, incentives, conferencing,
exhibitions) tourism and eco-tourism.

(Kwun, 2010) The objective of
this study was to evaluate the effects of extended hotel brands on its lodging
brand portfolio. The research framework examines the effects of perceived
quality and brand effects on attitudes toward extended brands, and subsequently
on attitudes toward a lodging portfolio. Results showed that perceived quality,
brand class and brand reputation were important in consumer evaluation of brand
attitude toward extended brands. In addition, fit and familiarity seemed to be
important variables of consumers’ attitude formation that moderates the
attitude transferability between a brand portfolio and its extended brands.
This article shows that hotel companies need to clearly understand how consumers
perceive extended brands and its effects on a lodging portfolio for an
effective brand portfolio management. The principle contribution of this
article is that it provides the importance of holistic management strategy and
its competitive advantages in brand portfolio management in the lodging
industry.

(Henry, 2015) This study examines
the outcomes of the rebranding strategy in the hospitality industry and
advances an understanding of the decision making process behind rebranding
policies. The impact of hospitality on the global economy is growing. Both
business and leisure travel have steadily improved following the 2008-2009
financial collapse. Since this crisis, GDP growth has returned to key
economies, leading to an increase in disposable income and an increase in
demand for hospitality services. Despite some barriers such as geopolitical
instability and inconsistent economic growth, the global industry is thriving
and the future looks promising. However, in this hypercompetitive environment,
where executives are seeking innovative alternatives to traditional products to
meet evolving demand, rebranding strategy decision makers should be aware of
the short and long term risks and complexities to ensure rebrand success.

(Dev, 2015) As many as one-third
of U.S. hotels have been converted from one brand to another in recent years, a
process that frequently improves the hotel’s financial performance—although
that is not always the case. Using data collected between 1994 and 2012 from
PKF Hospitality Research, an analysis of brand conversions by 260 hotels shows
that hotels moving downscale generally improved their occupancy, and thus their
top-line revenue and profit ratios, compared to a control group of 2,750 hotels
that did not change brands. However, hotels that moved upscale did not see
notable changes in revenue or profit, nor did hotels that moved across their
tier, especially when they stayed within their brand family. Two factors seem
to drive the financial results for converted hotels—the relative strength of
the brand and the fit between the brand and the property.

(Dhillon, 2013) This study says that
in general, perceived service quality seems to be positively related to
customers’ likelihood of remaining a loyal customer and their attitudes toward
the service provider (Anton, Camarero, &Carrero, 2007; Bell, Auh&
Smalley, 2005; Aydin & Ozer, 2005). Suhartanto (2011) reported that there
are numerous studies, mostly conducted in developed countries, which examined
service quality as the determinant of customers’ brand loyalty in the hotel
industry. This prompted the researchers to investigate empirically how and to
what degree customers’ perceptions on service quality dimensions impact their
hotel brand loyalty in developing country – India. Multiple regression
analysis, on survey responses of the customers of 8 different four and five
star hotels, reflected that customers’ perceptions on tangibles, empathy and
reliability contributed to fostering their loyalty with hotel brands.
Implications for practitioners and future researchers were discussed, too.

(Graham, 2007) In this article the
author talks about the issues that hotel owners and operators face when they
decide to change the hotel brand. It is said that most of it are common
problems faced by hoteliers. The author says that great care should be taken to
make sure that the people, organisations, processes and technologies should be
coordinated throughout the business. It is also important to coordinate those
processes and technologies that are external to the business. This needs proper
and efficient planning, skillful execution and patience for it to succeed. He
concludes by saying that it is common for hotels to change brands but it can be
bad for the business if it fails to resource the leadership of the change
process and properly plan the many changes that are implied.

(Edwards, 2010) The author reflects
on the legal dispute over EasyJet Airline Co. Ltd.’s business name in Great
Britain. Stelios Haji-Ioannou, the owner of the company’s name and license,
expresses interest of controlling the business’ activities by encroaching it
from his other ventures and preventing it from participating airport business
activities. The author points out the company’s concern for the possible impact
of changing its name and advises it to pursue its rebranding plans.

(Clay, 2013) The article presents
the views of marketers on the potential impact of rebranding and corporate name
changes on corporate culture, focusing on the mobile device firm Research In
Motion Ltd.’s initiative to change its name to BlackBerry. Views from the
marketers Ben Bilboul, Lindsey Clay, and Richard Morris are included. Bilboul
says that rebranding of the company will make people look at it with fresh
eyes. Clay spoke about the challenges in internal culture changes due to
rebranding. Morris was not very supportive about the rebranding and Fells said
that rebranding is nothing but a new name for the same business if other
aspects aren’t taken into consideration.

(Tesdahl, 2007) The article
discusses the possible impact of the sale or rebranding of a hotel on the
meetings and conferences industry. First, attendees who had planned to use
their accumulated frequent guest points to pay for their rooms at an upcoming
conference may be unable to if the property is now affiliated with a different
company. In addition, a new management company will likely bring in its own
staff, which may not be as well trained and cohesive as the staff of the prior
management company.

(David Solnet, 2006) This article states
that rebranding has turned out to be common in the hospitality and hotel
sector. Research has not precisely inspected rebranding from the
representative’s point of view, nor has past research considered the effects of
rebranding on the quality of service and client results. This paper discusses
the aspect of service climate and employee identification in hospitality
associations and proposes a reasonable model that connects the same with
customer service and related results, for example, informal correspondence
practices. As a part of a larger project, 228 representatives in three hotels
in Australia finished a self-report review. During which, the hotels were going
through rebranding. Hierarchical multiple regression analysis was used to
examine the connection between the interest factors. Initial findings exhibit
an important aspect of customer- contact conditions of service climate and the
role of employee identification with their department in anticipating worker
view of client results.

(Brennan, 2015) This article gives
an account of Amaris Hospitality’s set off of a 100 million euro rebranding
program. Points covered comprises of the vital audit of the 89 hotels inside
the Amaris’ group of hotels made by Lone Star, expected conclusion of the
rebranding toward the finish of 2016 and (CEO) John Brennan’s clarification
that the rebranding intends to use and reposition the organization’s inns.

(Guadagnini, 2014) This article talks
about the renovation of the earlier Bonnington Hotel in London, England and its
rebranding into DoubleTree by Hilton by Crimson Hotels. Subjects talked about
incorporate the franchise agreement of Crimson with Hilton Worldwide, general
manager Sandro Guadagnini’s depiction of the modifications made on the hotel to
meet the norms expected of the brand and extension the hotel’s customers.

(John W
O’Neill, 2010)
In
the article, the author speaks about the consequences of hotel rebranding on
its financial performance. Bjorn Hanson, Anna Mattila and John W. O’Neil who
are hotel consultants organized a study using regression analysis to understand
the counterintuitive effects of rebranding affecting the hotel’s net operating
income due to operational expenses. It shows a chart showing the index of hotel
values from 2006 to 2009 with the value per room and annual percent change.

(Brennan K. , 2000) This article
talks about managing the rebranding endeavours at Choice Hotels under the
authority of the president and CEO, Charles Ledsinger. It also talks about the
issues considered by Ledsinger for the rebranding exertion, web website and
electronic-acquisition program created by the organization and about how the
organization managed the work issue.

(Management H. , 2014) This
article gives news briefs on the U.S. hotel industry as of March 2014. It
includes the determination of Hotel Equities to oversee four La Quinta Inn and
Suites Hotel in Florida, the rebranding of Wyndham Hotel Group’s eight hotels
over the U.S., and the agreement between Toga Hotels and Rendezvous Hotels to
give consultancy to 11 of the previous’ properties in Australia and New
Zealand.

(Management, 2008) This article offers
news briefs identified with hotel industry in the U.S. Driftwood Hospitality
putting in $3.75 million in the redesigning of the Dadeland Ramada, changing
over the property to Hotel Indigo. Noble Investment Group Ltd. gained the
AmeriSuites Hotel. Magnuson Hotels finished the rebranding of the 104-room
Pheasant Hill Inn and Suites magnuson Grand Hotel, an earlier Best western
property.

(Eisen,
2012)
This
article talks about the effect of poor financial condition on autonomous hotels
in Europe. It says that the poor monetary condition has affected the hotel
business in Europe. As indicated by the Jumeirah Group’s official executive
Gerald Lawless, affluence in brands is now getting to be plainly obvious to
hotel proprietors. It also remarks on rebranding of Jumeirah Grand Hotel Via
Veneto.

(Ricca,
2010)
This
article talks about the rebranding activities of Carlson Hotels Worldwide Inc.
to its Radisson, Country Inns and Suites and Park Inn brands. It says that the
organisation moved its administration and business center under the
administration of president and CEO Hubert Joly. It also emphasizes that the
Radisson brand will accentuate on leisure travel.

(Gunter,
2006)
This
article gives an account of the diversification of Settle Inn LLC in Aberdeen,
South Dakota by consenting to its first multiproject arrangement for hotels in
Wisconsin. As indicated by CEO Brendan Watters, who built Settle Inn LLC with
Dave Graf in 2005, the fourteen year old brand which comprises of seven hotels
is rebranding and beginning diversification in the Midwest with the idea of
going national. He also said that the time was ideal for diversifying a brand
that is simple and centered around the visitor, yet in addition one that
searches out for the proprietor group.

(Khasru,
2006)
This
article gives details on the experience of Joe Barry when he purchased the
120-room Executive Suites Inc. in Tallahassee, Florida. At the time Barry
purchased the lodging, its occupancy remained at 30 percent with a 25 dollars
approximate every day rate and its facilities were not doing so great. The strategies
used by Barry to improve the situation included the rebranding of the hotel to
Suburban Extended Stay Hotel, changes in inside plan, enhancements,
administrations, and showcasing technique. The article talks about the
procedures used by Barry and Edward Xanders, leader of Interim Hospitality
Consultants in Tallahassee, studied the local market in the range and how they
concluded as to which were the areas that needed improvement.

 (Hertzfeld, 2012) The article presents
data on the buying of New York City’s Jumeirah Essex House hotel, by Strategic
Hotels and Resorts Inc., from Dubai Investment Group. The gross price expressed
is around 362.3 million dollars. Likewise, a 50-year administration agreement
has been made by Strategic Hotels and Resorts, with Marriott International Inc.
for the rebranding of the lodging as the JW Marriott Essex House New York.

(Hotelkeeper,
Trianon Palace Versailles is a Collection Item, 2009) The
article gives details regarding the rebranding of Trianon Palace Versailles
lodging as a major aspect of Hilton’s Waldorf Astoria Collection in France. It
says that the hotel is the second European hotel added to the Waldorf Astoria
Collection, with the previous Rome Cavalieri Hilton as the first hotel added to
the Collection. It is noticed that the rebranding marks Waldorf Astoria’s first
launch in the nation with a multi-million remodel program.

(Hotelkeeper, Save Some Cash for Upgrades, 2012) This
article gives the data on the rebranding of the Sheffield Park Hotel under the
Double Tree by Hilton establishment framework. Longrose Buccleuch Management
acquired the Sheffield Park Hotel and reopened the same under the franchise of
Hilton’s Double Tree brand. The director of Longrose Buccleuch said that the
hotel had a good team of staff and had sufficient capital investment but the
brand wasn’t strong enough in a competitive local market. Their plan was to
invest in upgrading the property to the Double Tree standard. The hotel was a
distressed asset and hence it had a longer and more complicated legal process.
But the rebranding served its purpose and the hotel is now considered one among
the top hotels. The director proudly says that the hotel is achieving a fair
share in the local market and is ranked fifth for customer satisfaction among
the many Double Tree hotels all over the world.