Destination Hotels & Resorts wants to reintroduce itself to guests and travel agents.
“Guests love our properties, but they don’t necessarily know that they are Destination properties,” said Jamie Sabatier, president and COO of Destination Hotels. “It is important for us to connect the dots."
Those dots are 43 independent, upscale properties ranging from ski resorts to conference centers to boutique urban properties, including Terranea Resort in Racho Palos Verdes, Calif.; Stowe Mountain Lodge in Stowe, Vt.; and Eden Roc Miami Beach.
To increase market awareness about the Destination brand, the company is launching a new website and logo, expanding its loyalty program and refocusing its marketing efforts to tout the brand.
According to Sabatier, Destination is the largest operator of independent hotels in the U.S. by revenue, which has increased by 30% over the last two years during a growth spurt in which nine properties were added to the Destination portfolio. In 2014, the company reported just over $1 billion in revenue, up from $825 million in 2012.
Based in Denver, Destination was founded in 1973 and for many years was focused on condominium resorts, specifically ski resorts.
Jamie Sabatier
Over the past five years, it has entered key urban markets such as Miami, New Orleans and Washington. “We will continue to grow that part of the portfolio,” Sabatier said.
Sabatier joined Destination in early 2012, coming from Starwood, where he was part of the W Hotels team. Sabatier was brought on in great measure to help grow the company’s portfolio, which he expects it to do by about five to six properties each year.
“The pipeline has never been better in terms of the opportunities,” he said of upcoming additions, adding that the company is also looking at its first international opportunities, in the Caribbean and Mexico.
“We are not looking to conquer the world,” he said. “Our goal is not to be the biggest but to be the best.”
Upon his arrival, Sabatier realized that while the Destination properties were delivering a great experience and product, few people knew about the company behind them.
“We are going to really focus on making sure that guests understand that we are standing behind each one of our properties,” Sabatier said. “We bring a lot to the table, but we still allow each property to maintain individuality.”
The consumer-facing elements of the relaunch, such as its website and new logo, will be launched in Q2, when the company will start adding Destination Hotels to its properties’ signage and collateral.
As part of the relaunch, Destination consulted with agents who Sabatier said “loved what we were doing in terms of bringing the portfolio together in a clearer way.”
The new website will offer increased brand education for agents as well as offer attractive rates for them to visit Destination properties.
Agents “loved that the company provided experiences their customers are looking for,” Sabatier said. “They want to understand the brand.”
The new website will offer increased brand education for agents as well as offer attractive rates for them to visit Destination properties.
The Destination Delivers loyalty program has doubled in membership over the past two years, to about half a million members. The program provides a 10% or more discount at each property along with benefits that include late checkout, upgrades and a VIP amenity. It will be expanded in 2016 based on research Destination is conducting to determine what its guests consider valuable and compelling in a loyalty program.
One thing Sabatier said Destination would not do is join the loyalty “points race.”
“It will be fascinating to see where the points race gets us in the next few years,” he said. “Owners are pushing back significantly and saying, ‘I’m losing the game here.’ It’s got to work for the owners, and it’s not. And points are not high on the list for our clients. They would rather have the experience of an independent hotel than the points.”