Hotel rebranding and rescaling: Effects on financial performance

An exploratory study of ninety-five hotels that rebranded or rescaled their operations revealed the possibility of long-term financial benefit after the change. In many cases the hotels saw an initial decline in financial results, but that was followed by a gradual recovery. Hotels that moved upscale generally saw increases in average daily rates. Hotels that merely changed brands without also changing their scale reported no significant change in financial results.