That hotel down the street

You're not competing with the hotel down the street.

Not if it's part of a national or global brand. You're competing with the entire brand and the budget and marketing resources that go along with it. 

So how do you get a competitive edge? With a clear Brand of your own. Your own 

supportable differentiation around which you deliver a unique value. And the moment you change your Brand from, say, "a hotel with this many rooms in this place" to "this hotel that is unique for these reasons," you narrow your competitive set. 

Suddenly, you're not just another pretty face with packages and special offers.