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LodgingNews March 2017 | Vol. 14 | No. 2
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HAC: The Future of Brands
From left: Phil Cordell, David Larone, Heather Balsley, David Tarr and Don Cleary. By Colleen Isherwood, Editor
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TORONTO — An all-star lineup of brand leaders faced off as the grand finale for the Hotel Association of Canada’s 25th conference, saying that brands are changing but are here to stay. Moderator David Larone of CBRE characterized 2016 as “a series of crazy takeovers,” and asked leaders of five major brands what they thought about the motivation for brand consolidation. Don Cleary, president of Marriott in Canada, said his company saw the acquisition of Starwood as “a once in a generation opportu-
nity. We felt it was a good price. Another big factor was the competitiveness of our industry groups in distribution now. Size and scale matter and help us to be competitive.” Marriott has added five chains over the previous eight years, including Gaylord Hotels, which provided access to the convention and entertainment multiplex sector, which Marriott did not have. Delta provided access to cities in Canada that Marriott did not cover. “We’ve got some digesting to do,” Cleary told the conference. “But I wouldn’t rule out another geographic move in another part of the world.” Similarly, Heather Balsley, SVP, Americas
brands and marketing for IHG, said their acquisition of Kimpton filled gaps in IHG’s brand portfolio, since Kimpton had a strong position in the boutique space. She noted that Kimpton could also benefit from IHG’s distribution network. “It’s all about scale,” said Phil Cordell, global head, Focused Service Brands, for Hilton. “It’s part of ensuring support of our customers across a broad spectrum of brands.” David Tarr, SVP, real estate and development for Hyatt, noted that at one tenth the size of the other hotel groups, with 650 hotels,
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LUXURIOUS LAIR BRINGING CLASS AND STYLE TO BATHROOMS
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NAVIGATING CHINESE HOTEL DEALS IN CANADA
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REAL ESTATE CLN’S LONGAWAITED REAL ESTATE SECTION
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