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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.
Hanson et al. (Tue,) studied this question.
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