The Local Strategy Behind an International Hotel

Article by Cátia Coelho 

Cante Alentejano, saudade, and the sea breeze. These are part of the local culture that international-brand hotels can bring to life. These brands’ trust, quality standards and consistency align with a strategy that brings local culture closer to the guest experience. This approach introduces guests to the traditions, gastronomy, and community of the region it is in, while providing distinctive, memorable stays. 

To structure a solid strategy, it is necessary to focus on clear pillars: location, authenticity, partnerships, operational adaptation, and people, balancing all aspects to deliver the best possible experience for both guests and the local community. 

The Balance of Local and International 

An international brand offers a hotel consistency, safety, and recognition. Brand standards are passed on each project worldwide, and guests expect similar services in all aspects: cleaning, hosting, and amenities. 

However, while standards reduce risks, local identity creates meaning. For this reason, hotels strike a balance between what is expected of an international brand and what the local community desires in terms of its traditions. Guests want more than basics – they seek authenticity and an emotional connection that sets the hotel apart, creating a sense of uniqueness. 

Architectural details, décor, design, and restaurant options are some of the most important aspects to consider when defining a hotel’s strategy. When aligned, these elements create the right mix of global standards and local identity, fulfilling one of the biggest wishes of general managers: making guests feel like they truly belong. 

Mercan’s Portfolio Strategy 

The Mercan portfolio includes 32 hotels in Portugal, 15 of each in operation, and multiple restaurants and bars that align with the local culture.  

The Holiday Inn Beja is a clear example of a local strategy implemented by a renowned international hotel brand. This hotel embodies the culture, gastronomy, and people of the Alentejo region. The interiors are carefully decorated with local tapestries and poems by local poets such as Florbela Espanca. The signature restaurant, Chaparro Alentejano, focuses entirely on local gastronomy, from the wines and olive oil to the bread and main dishes. Even the suppliers are local. The result is an internationally recognized name paired with an experience that feels unmistakably regional. 

The Major Pillars of a Local Strategy 

Mercan’s portfolio is spread throughout Portugal. It includes different international brands, locations, and concepts. These help create the differentiation that guests look for. However, to achieve and maintain the necessary balance, the local strategy for international hotels must be based on five pillars: 

1. Location 

The chosen location is one of the most important variables because it provides a significant competitive advantage that is difficult to replicate. The right place allows for convenience, safety, and proximity to major landmarks and attractions, which determines demand and pricing. It reinforces expectations from any global brand and does not sacrifice the comfort or service standards that tourists are used to. 

On a local level, this is equally important because it determines whether a hotel blends into the community. When a hotel is close to residents, they see it as more than just a place for tourists - it can be a place to meet, celebrate, relax, and, from an economic perspective, even work. 

2. Authenticity 

Guests remember authentic experiences, those that feel like one-of-a-kind and not generic. Every hotel can, and must, have a distinct identity that reflects the region’s roots, giving it character. This identity comes from elements that cannot be copied elsewhere in the world: history, art, culture, landscape, and people. It reflects a complete destination package, not just another concept from a book. 

Incorporating the region’s colors, rhythms and cuisine help connect locals and visitors. Local roots and flavors provide guests with an experience that connects them to the communities without compromising the credibility and standards they are used to. In fact, it strengthens the hotel’s image with a memorable stay, deeply connected to the destination. 

3. Local Partnerships 

Following the rules of international brands does not mean moving away from local suppliers and businesses. In fact, collaborating with them can have significant positive outcomes for the hotel and the city. 

Partnering with regional suppliers typically improves operational reliability. A simpler supply chain means shorter lead times and faster problem-solving. It is also easier to reach suppliers, and products tend to be cheaper and of equal or higher quality, especially when it comes to fresh foods like fruits, vegetables, and fish. In this way, hotel management can bring a piece of the region’s authenticity in, creating a trustworthy relationship with everyone. 

These relationships can also yield positive financial and sustainable outcomes. Local sources can reduce transport-related costs and emissions, support stable supplier networks, and reinforce a long-term reputation that benefits both the hotel and the community. Additionally, they can create more jobs. 

4. Operational Adaptation 

Operations are not the same everywhere – there are some adjustments required in order to comply to local service patterns and expectations. Consumer behavior varies due to cultural differences, meaning that despite being an international brand, not everything works the same way for all guests. Understanding these details is essential to adapting the hotel's operations. 

5. People 

People are part of any hotel’s story, and no one is an exception. Therefore, it is important to hire members locally, as they will have a wider knowledge of the region – its culture, traditions, gastronomy, and consumption habits. Staff become storytellers, service feels more natural, and connecting with guests becomes easier. Through people, the hotel builds a bridge between local culture and international standards. 

In terms of guests, international brands target both international markets and the surrounding communities. Local customers may provide recurring business and steady demand by taking advantage of events, restaurants, meetings, and local festivities.

Regionality is an undeniable advantage for international brands. It is a winning strategy for guests, brands, investors, and especially the community. If guests get authenticity without sacrificing comfort, brands benefit from a stronger differentiation in storytelling and the community gets new relevant spaces, more jobs and stronger supply ecosystems. In a market where travelers can book quality anywhere, the hotels that win are the ones that feel like “only here”. International standards provide safety, but local strategies foster a sense of belonging.