here come the independents!
An interesting future trend, now a present trend, but one that could multiply in the next five years, are non-branded hotels. “Indies”.
Independent hotels promise to give the brands a run for their money. Why? Costs.
Brands can cost as much as 18% of gross revenue.
And they may not be contributing enough top line to cover or exceed the expense.
Costs per occupied room were on the rise pre-Covid, so the brands now have an opportunity to demonstrate their value by assisting owners through recovery.
Perhaps brands need to consider reinventing themselves to show investors that the costs of having that brand makes sense versus an independent option.