Hotel developers and investors: Why your next project should be an independent brand—not a franchise
Is a franchise really the safest bet for your next luxury resort? If you ask the big chains, they’ll say yes. But take a step back. Does adding another cookie-cutter hotel to the world really sound like the best way to maximize returns?
The truth is, independent hotel brands are outperforming their franchised counterparts in revenue, flexibility, and long-term asset value. The outdated assumption that flag affiliations guarantee success is crumbling. Instead, today’s hotel developers and investors are realizing that true value lies in creating something unique—not in paying fees for borrowed credibility.
Independent luxury and upper upscale hotels perform better
STR data clearly shows that independent hotels in the Upper Upscale and Luxury segments have higher Revenue Per Available Room (RevPAR) than their brand-affiliated counterparts. This is largely due to their ability to price dynamically, customize operations, and execute creative strategies unrestricted by franchise rules. In many cases, being independent allows hotels to capture higher-paying guests without relying on corporate-driven discount strategies.
This performance advantage becomes even more significant when franchise fees are factored in, driving an even wider gap in Net Revenue Per Available Room (NetRevPAR).
With an independent hotel, you call the shots. You control distribution channels. You decide on your strategy. Many investors don’t realize just how much potential revenue is lost to fees, rigid pricing policies, and brand-imposed marketing structures.
Some investors still believe big-chain affiliation provides a “safe harbor” in uncertain markets. Here’s the reality: Studies have shown that independent hotels are more resilient in downturns because they can pivot faster, adjust pricing strategies in real-time, and build stronger guest relationships without corporate handcuffs.
Guests no longer want cookie-cutter experiences—why build one?
The boutique boom is real. Even the biggest hotel chains have rushed to create lifestyle brands to mimic independent properties. Why? Because travelers are willing to pay more for originality.
A templated resort with the same aesthetic, service structure, and F&B lineup as a dozen others won’t command the same prestige (or rates) as a one-of-a-kind, authentically local experience. Independent hotels have the creative freedom to integrate local culture, unique dining concepts, and hyper-personalized guest experiences—things large hotel groups struggle to execute authentically.
The luxury guest of today isn’t looking for predictable. They’re looking for unforgettable. If you build a franchise, you’re giving them more of the same. If you go independent, you’re giving them something they can’t find anywhere else.
Set the course for future expansion—on your own terms
One of the biggest arguments for choosing a franchise is scalability. But let’s challenge that: What if you could expand under a brand you fully own and control?
A well-crafted independent hotel brand isn’t necessarily a one-off project. It’s an asset that can scale into multiple locations without corporate red tape, contract restrictions, or revenue-sharing obligations. Many of today’s most successful luxury lifestyle brands started as single-location independent concepts before expanding into empires. Think of Six Senses, Aman, or Soneva. None of them started as franchises.
If the goal is to build something with real, long-term value—something that can grow beyond one property—why would you let a third party own the brand equity?
The power of early brand development—building it right from day one
A common mistake? Waiting too long to define the brand. Many developers focus on architectural plans first, then try to “fit” branding into the project later. That’s backwards.
When branding is considered from the start, architecture, amenities, service concepts, and F&B all align seamlessly. This creates a cohesive, multi-sensory guest experience—one that is impossible to replicate with an off-the-shelf franchise identity.
A brand-first approach also makes marketing and investor pitches far more effective. A hotel with a clear identity is easier to sell before it even opens its doors.
Questioning the franchise trend—build it right, own it fully
Vision matters. The most successful hospitality brands don’t happen by accident—they are intentionally designed with future scalability in mind. And they are owned by the people who built them, not by a corporate entity siphoning profits.
So ask yourself: Why build value for a franchisor when you can build it for yourself?
Motiva has helped hoteliers create powerful independent brands—ones that are financially successful, expansion-ready, and highly differentiated. We know what works, and we know how to make your hotel stand out in a way no franchise ever will.
Now is the time to build something iconic. Something truly yours. Will your next project be just another franchise, or will it be the next defining brand in hospitality?
your brand's potential
Unsure where to begin? Start your exploration with our brand audit – Motiva's branding experts are on hand to help you discover where your brand shines and where it can get even better.
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