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I'd like a SWOT analysis of Aloft Hotels
Hi, and thank you for asking Wonder to provide you with a SWOT analysis of Aloft Hotels. The most useful sources that I found were stmarysga.gov and mbaskool.com. Below you will find a deep dive into my research.
RESULTS
STRENGTHS
* The backing of the Starwood hotels and resorts group that manufactures their own distinctive lifestyle products.
*New and innovative style of select service hotel that breaks away from the traditional style of lodging.
* Associated with the prestige W brand of hotels that adds a positive advantage in marketing.
*Suited to the successful sub-market of select service hotels.
*Starwood central reservations system and points system
*Provides more amenities then competitors.
*Remix lounge, XYZ bar, Re:fuel and lingo provide an area that encourages guests to socialize in the central hotel area and is a source of revenue for the hotels.
*The cross-utilized staffing model enhances profitability and guest experience.
*Exterior designs are flexible allowing the hotels to integrate into historic areas.
*Award winning guest loyalty program.
*Affordable alternative but just as stylish as the W brand.
*Trend setting loft inspired design with platform beds.
WEAKNESSES
*Targeting of a specific demographic may discourage other groups.
*Too fashion conscious of the moment and this will go out of style.
OPPORTUNITIES
*Aloft would be a premier hotel at certain destinations such as along the coast or off the I-95. With 36 million tourists traveling along the I-95 annually this could be a growth area.
*78.2% of the developed space in an Aloft hotel is revenue producing. This could be developed and expanded on.
*More meeting space to bring in conferences.
*Food options are limited and there is a need for easy access to local food options in each city.
*Ready to cater to the Gap year generation.
* Bullish investors also say hotels are finally benefiting from their decades-long effort to create hipper, boutique subsidiaries. Examples include the W and Aloft units of Starwood Hotels & Resorts (HOT), Hyatt’s Andaz chain (H, -0.54%), and Hilton Worldwide Holdings’ Canopy and Curio. These boutiques’ trendier on-site bars and restaurants and locally inspired design appeal to travelers put off by the cookie-cutter feel of larger chains—especially millennials, whose financial clout will mushroom in years to come.
THREATS
*This is very demographic and style specific. If the brand fails it would be difficult to convert the hotels to other upscale brands.
* Starwood Hotels may not continue to support the brand if it fails. They are often re branded and as Aloft is a small group this may be more likely.
*A number of hospitality giants are moving into the emerging markets where Starwoods and the Aloft brand have been the major competitors.
CONCLUSION
The brand is growing but should try to broaden their appeal to other demographics through marketing campaigns.
Please feel free to contact Wonder for all your research needs.