The hotel industry has undergone significant changes in recent years with the growth of franchise models, allowing hotel companies to grow faster, but with lower returns as compared to management fees model. This shift has made the branded sector easier to value and has resulted in higher stock values and returns for hotel companies. However, as they move away from the property, they risk losing their brand standards. The role of asset managers will become critical as the operations of the hotel must happen closer to home. The move to distribution-focused tech platforms will result in a division in the sector between high-volume brands and curated, emotional brands, and the loyalty programs will have to compete more directly with online travel agencies. Hotel companies will need to work on becoming true recognizable consumer brands in the way Airbnb has, drawing on their decades of customer data and heritage.
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