One of the America’s largest and fastest growing hotel companies launched two new hotel brands aimed at travelers who prefer independent hotels.
On Monday, Boston-based Sonesta International Hotel Group launched Classico and Mod, two low-cost brands that operate in the high-end and high-end segments, respectively.
Each Classico hotel, which will be parked in Sonesta’s luxury and lifestyle subdivision, will feature local dining options as well as premium design and service. The modern hotels, which will be part of Sonesta’s luxury hotel division, will feature “eclectic design” as well as individually curated dining programs.
The first Classico hotel — the Z Ocean Hotel in Miami Beach, Florida — as well as the Mod Hotel — the first 11 in Calgary, Alberta — opened its doors.
Sonesta’s new soft brands enter an already heavily competitive field such as Marriott’s Signature Collection, Hilton’s Curio Collection, and Hyatt’s Unlimited Collection. Why throw a hat in the hoop?
Sonesta’s leadership team says that’s what customers and hoteliers want.
“Consumers want more experiences. They want something unique. They want something rooted in the local community. Brian Quinn, director of development at Sonesta, told TPG in an exclusive pre-launch interview. “They are sensitive around the provision of food and drink. They are sensitive to how the product is marketed and how it serves the right audience.”
Sonesta’s newest brand
Further promoting soft brands is how hotel companies continue to enhance their options for potential guests without going through all the trouble of persuading owners to spend money on building a facility. business conforms to the standards and requirements associated with a “hard brand” such as a Westin or a Hyatt Regency.
Instead, low-cost brands are more flexible in terms of design and comfort as long as they maintain a certain level of customer satisfaction. But they also allow independent hoteliers to tap into the booking system and loyalty of a larger brand.
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“We recognize that in these urban and destination markets, especially with Classico, that in the high-end luxury space continues to have great independent hotels in North America and around the world, for that matter, want to associate with brands and take advantage of scale and commercial motive [of a bigger company]’ said Quinn. “But [they also] wanted to keep the uniqueness they had nurtured around the hotel – its history and service in the community.”
Future Classico hotel expansion will likely focus on larger cities and lifestyle destinations. Mod hotels are likely to operate in smaller markets.
Quinn adds: “Mods have the potential to make a much larger footprint, but the market also has to be a bit more lifestyle sensitive.
Sonesta is rapidly advancing
New brands add to Sonesta’s ongoing seismic growth trajectory. Just a few years ago, the hotel company had less than 100 hotels. Today, after acquiring the parent company of Red Lion Hotels, RLH Corp. in 2021 and continues to launch many new brands, the company has more than 1,200 hotels.
Prior to Monday’s announcement, some of Sonesta’s brand additions were focused on more affordable segments of the hotel ecosystem, such as Sonesta Essential and Sonesta Select – offerings more limited than the brand’s. Sonesta Hotels and Resorts of the same name or premium Royal Sonesta brand.
But there has been a push to get more involved in the lifestyle hotel sector, including hotels that cater more to customers who crave the experience and restaurants that are their own destination. The James is a Sonesta brand that competes with Hyatt’s Thompson Hotels.
Elizabeth Harlow, brand director for Sonesta, said in a statement: “The Classico premium identity is a unique alternative to the The Royal and The James brands. .”
Classico operates in the “upmarket” space which means it will compete with the likes of Marriott’s signature collection And Hilton Antiques Collection. Mod’s “premium” category includes competitors like Hilton’s Tapestry Collection.
Sonesta’s expansion into the soft-brand space is also the company’s latest positioning ahead of the world’s largest hotel companies. Like Marriott and Hilton are filling the void in their brand offerings With its recent expansion into more affordable market segments, Sonesta’s further push into high-end hotels allows the company to have a stronger range of offerings for every price point.
It also comes after a recent overhaul of the Sonesta’s Travel Pass loyalty program. Combine all these moves and you have an increasingly formidable hotel player in the game of travel giants.
“We see these two products play an important role as we develop our premium and luxury spaces,” says Quinn. “We fully recognize it as a strategic component of US strategy and future strategy around the world.”
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