Originally Posted by
loomis
Ironically, LaQuinta, like Hilton, is already owned by Blackstone. I think that Hilton wants to start a new budget brand from scratch.
However, wouldn't it make sense to either move LQ into Hilton or use the properties as the basis for the new chain?
Think of the potential benefits:
1. Reduce corporate overhead and get efficiency savings, switch to better supply contracts from both sides - admittedly you could do that without merging the marketing
2. Get dense coverage immediately - essential to building loyalty in a budget chain
3. Switch the brand for lower-end Hamptons to preserve the brand as being more 'mid market' than budget
4. Use either the LQ name or the new brand to highlight that properties have been refreshed to attract custom
5. Get whole-life customers who start with travel to low-end motels and as they become more affluent, lock them in to Honors - or provide a back-up for areas where there isn't coverage
6. Grow the market for LQ properties - as long as they don't cannibalize - by pitching them at Honors members - as well as using the LQ network, in combination with others, to help drive corporate deals through lower cost or better coverage.