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Club Hotel by Doubletree Brand Dropped by Promus; 
25 Hotels to be Re-named Doubletree Clubs
 
MEMPHIS, Tenn. - August 23, 1999--Doubletree Hotels, a Promus Hotel Corporation (NYSE:
PRH) brand, today announced that on September 1, it will rename all 25 Club Hotel by Doubletree properties, currently open or under construction, as Doubletree Clubs in order to unify the hotels under the Doubletree brand umbrella, which now includes Doubletree Hotels, Suites, Resorts and Clubs.

�The Club Hotel by Doubletree concept, introduced in 1996, has enjoyed good initial success and very positive guest response,� said Cindy Davis, senior vice president of the Doubletree brand. �Because of that response, we wanted to accelerate the concept�s growth and
acceptance by fully aligning it with the Doubletree name. The synergies are too compelling from both our guests� and owners� perspectives to keep it a separate brand.�

Doubletree Clubs will be positioned in the lower upscale segment, competing against the �garden� hotel category. Properties will average less than 250 rooms, have limited meeting and food and beverage facilities, and typically will be located in airport, suburban and secondary markets. �What will separate Doubletree Clubs from its competition is the unique Club Room, which offers services and facilities found in no other hotel brand,� she pointed out.

Davis noted that guests already refer to the hotels as Doubletree Clubs and that research indicated that the name change would enhance consumer recognition. �We believe that in the lower upscale segment, as defined by Smith Travel Research, the Doubletree Club name will
enjoy greater consumer confidence and awareness than the Club Hotel by Doubletree name.�

Doubletree Club property owners also will benefit from the change, Davis pointed out. �Becoming more closely linked with the Doubletree brand will provide a significant increase in marketing funds and other synergistic marketing advantages, such as the
1-800-222-TREE reservation number, enhanced cross-selling opportunities, regional cooperative advertising programs and greater consumer brand recognition,� she said.

�As Doubletree Clubs, these hotels will particularly benefit from our national, regional and local sales efforts,� she said. �We believe that these benefits, along with the advantages of a common Doubletree technology system and related support services, will enhance revenue
growth and reduce costs. We anticipate that hotels will be able to ramp up more quickly and the closer association with the Doubletree name will have a favorable impact on occupancy and average daily rate.�

Davis explained that the entire Doubletree portfolio is being targeted to be a major player in the upscale category. �We believe there is an extraordinary opportunity to align the Doubletree brand with emerging consumer trends. Today�s upscale business and leisure
travelers are self-reliant individualists who depend on their own instincts and strive for a less complicated lifestyle. Until now, no hotel chain has positioned itself to truly meet those needs,� she said.

�Doubletree is a new brand with a culture focused on customer-responsiveness, which is more in line with today�s travelers� needs,� she said. �Our approach will be to provide a hotel environment that allows our employees to be spontaneously reactive to customers� needs rather than offering more traditional, passive service roles. We believe that this strategy over time will significantly differentiate the core Doubletree Hotels, Suites and Resorts in the upper upscale category and make Doubletree Clubs a major player in the lower upscale segment.�

Doubletree Clubs will continue to feature the brand�s unique, signature Club Room, a specially designed area that blends the business features of an airline club room with the comfort of a residential den. �No other hotel concept has a design like the Club Room, which clearly distinguishes Doubletree Clubs from its competitive set,� she said. �All of our guest research indicates that the Club Room is a major competitive advantage. The concept is equally appropriate for the leisure traveler, who, in addition to a comfortable hotel room, also gets a den with a big-screen TV, a cafe and a lounge.�

Located just off the hotel lobby, the 3,000- to 5,000-square foot Club Room functions as a business hub, lounge area and a restaurant and bar, all in one setting. Hotels may continue with the current Au Bon Pain Cafe food and beverage concept or choose a new Club Cafe
concept, which features a buffet breakfast and full-service lunch and dinner. Doubletree Clubs� guests also will have small meeting rooms available, as well as a 24-hour, self-service business center.

Davis said that future Doubletree Clubs will continue to be a combination of new construction and conversion of existing properties. �Our goal is for Doubletree Clubs to be the preferred conversion brand for existing hotels in that market segment,� Davis said. �We continue
to have a strong pipeline and expect to approve 10 to 20 franchises over the next 12 to 18 months. We have two great properties opening in Dallas shortly, one a new build and the other a total renovation, a unique conversion property under way in Boston and several other
properties under development.�

Davis noted that the knowledge about business travelers gained from the Club concept will be shared throughout the Doubletree brand. �We have learned so much new information about today�s business traveler with this brand, which we plan to use to make our other hotels even better,� she said. �For example, 50 percent of business travelers carry a laptop computer, but have difficulty using them because they can�t get access to printers or fax machines. Seventy percent of business travelers would hold a small meeting of two to five people if facilities were available. Our Club Room is the only upscale design that consistently meets those needs.�

Promus Hotel Corporation is the franchisor/operator of Doubletree Hotels, Suites, Resorts and Clubs, Embassy Suites, Hampton Inn, Homewood Suites, Hampton Inn  Suites, Red Lion Hotels, Embassy Vacation Resort and Hampton Vacation Resort brands. The company also
manages non-Promus branded hotels and facilities in its University Hotel  Conference Center division. The company franchises, operates or owns hotels throughout the United States and in Canada, Mexico and Latin America. Promus is headquartered in Memphis, Tennessee, and has approximately 40,000 employees worldwide.

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Contact:
Promus Hotel Corporation
Melissa O�Brien
901/374-6462
 
Also See: Recent Hotel Development Milestones for Promus / June 1999 
Re-invigorated Red Lion Hotel System Soon to be 29 Hotels Strong / June 1999 

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