IHG’s Kimpton Los Monteros hotel opens in Marbella

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• JDB says:

  7 Mar7 March 11:47

  I’m not sure why a good hotel in this seemingly popular location needs the crutch of a huge chain brand; it ought to be able to stand on its own two feet if it were of sufficient quality. Going with IHG/Kimpton which has very low brand management/enforcement probably doesn’t bode very well.

  • HampshireHog says:

    7 Mar7 March 11:56

    I guess because the branding makes it easier to attract the lazy with deep pockets

    • Rob says:

      7 Mar7 March 12:11

      A lot of it is about funding. It is, I have read, SUBSTANTIALLY easier to get loans for hotel developments when you have an international brand signed up.

      They are also, based on US research I saw, more profitable. Oddly this is entirely from marketing savings – on average, a branded US hotel does not command a high enough price premium to offset the brand fees so net room revenue is actually lower BUT the hotel doesn’t need to spend anything on marketing and this is where the cost advantage hits.

      • Joseph says:

        7 Mar7 March 17:27

        Worked for a major hotel chain before. Standard franchise fee for a chain hotel – 4% on rooms revenue, 5% on non-rooms revenue (i.e. folio charges). These are often waived or reduced during the first few years as the hotel ramps up. Brands also often provide “key money” which is a substantial cash payment to sweeten the deal and lock in the franchisee. Brand is also providing goodwill, concepts, architecture and design, technology licenses, volume savings on hotel consumables not to mention access to their reservations system (no need to pay OTAs for a chunk of their bookings).

        Aside from pure franchising there’s also the management model in which the brand will actually run the hotel and provide the GM to you for a share of the profits.

        • Rob says:

          7 Mar7 March 19:16

          That is correct for the franchise fee, yes. However, you have a marketing / reservations fee on top plus a loyalty fee (4-5% of qualifying revenue). You’re looking at 10-12% in total.

  • TGLoyalty says:

    7 Mar7 March 15:23

    I think you underestimate the cost of building your own brand and reputation

    I bet there’s lots of very good/great independent hotels out there but most of us will never know who they are and in order to get I front of us they need to spend lots on marketing

    Yet many millions of people have a few apps with names they trust and expectations of a certain level of service and standards.

• Dragonlady says:

  7 Mar7 March 14:08

  Five minutes ‘ from the heart of the city ‘ is a tad optimistic ! I hope the soundproofing is adequate as the background noise from the very near and perpetually busy N340/ A7 can be rather intrusive.

• davedent says:

  7 Mar7 March 17:15

  If you don’t like its location , smoking policy or branding just don’t stay there then – really simple.

• Michael says:

  7 Mar7 March 19:30

  I’m around Marbella at the moment. The weather is not good and tourist season hasn’t swung into action yet. How the heck can this new hotel be charging over £500 a night for nights currently!?

  • NorthernLass says:

    7 Mar7 March 23:31

    I’d be more tempted to stay in one of the Iberostar properties if amassing IHG night credits. Shame about the weather, I’ve been several times in February/March when it’s been glorious.

    • Michael says:

      8 Mar8 March 21:26

      Agreed. The Ibersotar nearby is £62 a night half board!!!

• TJ says:

  7 Mar7 March 21:35

  I stayed at the Los Monteros 20+ years ago. It was quite an exclusive area back then with Antonio Banderas living close by, but it’s a long way from Marbella town. Still, looking forward to giving the Kimpton a try if and when the price is right. Likewise the new Fairmont La Hacienda near Sotogrande.

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