The challenges of luxury fashion flagship hotels: The case of Maison Moschino

In the last few years, many luxury fashion labels have ventured into the hospitality industry. Italian houses have been particularly active in capitalizing on their brand value by employing brand extension to create branded hotels where customers can experience a lifestyle that reflects the spirit of the label. After a phase of rapid expansion, however, this phenomenon appears to have slowed down. Taking the case of Maison Moschino, the first foray of fashion brand Moschino into the hospitality industry, this article explores the rationale for such brand extensions. In light of the failure of that venture, the opportunities and the risks involved in brand extension are examined.