Why Hotels Are Choosing Independence Over Brand Affiliation
💰 In 2025, Sonder's immediate wind-down raised concerns about brand affiliation security. With brand fees weighing on low growth, hotels are reconsidering independence. By 2026, RevPAR growth is projected at just 0.6%. Independent hotels, valued at $281.7 billion in 2025, are expected to grow at 11% CAGR, reaching $800 billion by 2035. Brand affiliation costs include 2-6% royalty fees. Independence offers strategic flexibility, creativity, and agility, enabling hotels to adapt quickly and innovate freely.
Share
