Leading Hotels Case Studies
The Brand and its Benefits to You
There is an unmistakable and well deserved pride in becoming a member of The Leading Hotels of the World. The Leading Hotels of the World brand, the most highly differentiated brand and product in the industry, is recognized instantly around the world as representing luxury, reliability and leadership. For some properties, that distinction is the primary reason for seeking membership. After all, The Leading Hotels of the World is the global leader in luxury hospitality with more fine hotels and resorts than the top ten “flagged” luxury brands...combined.
While that fact is quite impressive, there are also more lucrative reasons for membership. A more tangible fact is that this complete, global, full-service hotel company offers the absolute greatest return on investment within the hospitality industry.
Unmatched Return on Investment
It is only fitting that the unmatched luxury and uniqueness of our member properties should be rewarded with unequalled value on their investments. A recent study concluded that The Leading Hotels of the World is 150% less expensive than the branded “flags”, while still offering comparable services. Working with The Leading Hotels of the World not only affords the opportunity to remain independent with your own unique characteristics, but it is also the most affordable and productive branding decision you can make. The Leading Hotels of the World delivers the greatest return on investment of any brand or franchised group.
Delivering the Highest ADR in the World
The Leading Hotels of the World is the worldwide leader in ADR. As an example, The Leading Hotels of the World saw a year-end 2007 ADR of USD470, the highest in our competitive set. The Leading Hotels of the World delivered a USD524 ADR to a 250-room European hotel that previously enjoyed an ADR of USD490.
The Only True Global Distribution System
The Leading Hotels of the World owns and operates more than 25 sales and reservations offices around the world, affording members local support in primary and secondary markets, to help them maximize their selling opportunities. These allow member hotels access to primary and secondary generating markets with local support to hoteliers, thus maximizing selling opportunities.
LHW.com, the home of The Leading Hotels of the World online, generates tens of thousands of reservations annually for its members at an average value of over USD1,300 per reservation.
LHW.com also provides outstanding marketing opportunities for its member hotels, attracting almost 8 million unique visitors annually.
A Strong Case for Increased Yield
The Leading Hotels of the World employs an “order making” process rather than the typical “order taking” mentality that prevails elsewhere. This is a proven method for delivering the maximum value per transaction. While there may appear to be some savings with other hotel companies, they come with a dramatic reduction in services as well as yield. A 300-room hotel that had flourished under two different hotel flags became much more profitable as an independent member of The Leading Hotels of the World. Investing the monies previously allocated for these flags into an LHW membership increased ADR from USD404 to USD497, and net operating income from USD8.2 million to USD12.5 million.
Another 110-room urban hotel switched from membership with a competitor to The Leading Hotels of the World with spectacular results, increasing ADR by 21% and yield by 40%:
Savings and Efficiencies
The Leading Hotels of the World delivers incremental business that would be too costly for a hotel to acquire on its own. The Leading Hotels of the World absorbs 20-30% of the cost to attract new guests, allowing member hotels to use their marketing expenditures more efficiently. This is backed by a USD20 million global marketing effort. Other savings come from valuable marketing partnerships. As a single example, member hotels receive discounted American Express credit card fees realizing savings that approach the entire cost of membership.
Leaders Club: The Ultimate Loyalty Program
The Leaders Club gives member hotels access to more than 40,000 of the most affluent travelers. It is a one-of-a-kind customer loyalty program with a “high touch” strategy. 80% of Leaders Club members reported a first-time stay with a new member hotel specifically through Leaders Club...representing pure incremental business. These guests pay higher ADRs than other Leading Hotels of the World guests...USD598 for members and over USD761 for Unlimited members. Best of all, this program is available at no cost to our member hotels.
Leading Products and Services
The Leading Hotels of the World has a collection of highly qualified companies and consultants that have been carefully selected to assist potential member hotels with a complete array of customized services and products for every department in your hotel – Accounting and Finance, Architecture and Design, Engineering, Food and Beverage, Front Office, Human Resources, Purchasing, Reservations, Rooms Division, and Sales and Marketing. This extensive group of professionals has been chosen based on their superior products, services, and proven experience in the luxury hospitality sector. These organizations are further challenged by The Leading Hotels of the World to offer special rates and values for member hotels.
Membership Options
Licensing Agreement
Provisional Membership
Traditional Membership
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