So there is some room for bargaining. In particular, if offering a €19 million parcel of land for concessions that increase the NPV of the Arts Hotel by more than €19, then that is an avenue that Faus should pursue. While it is unlikely that Real Cortez would respond favorably to this aggressive application of leverage, something dramatic is needed to bring Real Cortez to the table. 4. Branding is important in the hotel business, for two reasons. Travelers often seek consistent experiences, and brands are key reference points for a reliable experience. Many frequent travelers belong to loyalty programs as well, so they will actively seek out certain brands. In addition, the reservation systems of major brands hold value. Those reservation...

If there are different names on those hotels, the consumer will fail to see the same connection that may well exist behind the scenes.
Applying hotel-style branding to other properties has occurred, but with less effectiveness. In Asia, there are companies that brand multiple shopping malls; apartment rental companies have attempted to brand as well. Ultimately, however, the hotel consumer is more receptive to branding because the hotel consumer needs the reference point when traveling. If there is no travel involved, the purchase decision will a) not be made as frequently and b) not be made in an information vacuum. Since the purpose of the brand is to resolve…