HM on Location: Independent luxury gains ground

Independent hotels are quietly gaining market share in the luxury space as travelers today favor authenticity and experience over predictability. Panelists from “The Future of Independents in the Luxury Space” session at The Hospitality Show in Denver in late October noted this movement isn’t simply about design or personality. Instead, it’s a commercial strategy. Jennifer Barnwell, president of the Curator Hotel & Resort Collection, moderated the session. 

“Luxury as a category has huge runway and, within that, independents are outperforming branded peers,” said panelist Chris Walker, senior vice president and chief commercial officer of the Leading Hotels of the World. “The trends all point in our favor: consumer expectations, search behavior, desire for authentic experiences. We’re very bullish on the future.”

Once seen as risky or resource-intensive, independent hotels are now viewed as a viable business model with proven results. The latter comes from leveraging technology, guest data and selective affiliations to balance freedom with scale.

Plus, this isn’t the indie hotel’s first rodeo.

“Independent hotel keeping has a longer history in Europe,” Walker added. “For those who put in the time and effort in the U.S., we see the same results – 20 percent global growth, consistent between the U.S. and Europe.”

Walker pointed to the Lowell in New York as proof of concept. “It is regularly recognized as one of the city’s top hotels – and it’s family-owned and independent,” he continued. “So, while independence is more top of mind in Europe, there’s nothing holding you back in the U.S.”

Independent, Not Alone

Panelists agreed that the rise of independent luxury doesn’t mean owners are operating in isolation. Many are finding strength in numbers, leaning on alliances and soft-brand platforms that let them grow without giving up their independence. Platforms like the Leading Hotels of the World and Curator Hotel & Resort Collection can offer indies brand-level reach without brand-level constraints. In other words, the best of both worlds. Similar groups, such as Preferred Hotels & Resorts and Small Luxury Hotels of the World, follow the same model of collective scale built on individual identity.

“Independence doesn’t mean doing it alone,” Walker added. “Independence means finding the right partners to help you scale smartly.”

He noted that partnerships allow independents to access the same reach and efficiencies as large chains while maintaining full creative and operational control. That flexibility, he added, is one of the clearest advantages independents own over branded competitors.

Gregory Day, president of hospitality and managing director for Mani Brothers LLC and Malibu Beach Inn, expanded on what that freedom looks like in practice.

“First, you have to own and utilize your data,” he said. “It’s the most important differentiator. Build a database you’ll actually use – track preferences, stay patterns, all of it.”

Another benefit Day noted was how independents can act on that information without waiting on corporate approval.

“One advantage independents have over chains is control,” he said. “For instance, if you’re part of a brand and want to push a package or promotion, the brand will prioritize its own offers first. As an independent, you can act quickly and tailor decisions to your business.”

That agility – whether it pertains to launching a promotion, adjusting rates or testing a new package without waiting for brand approval – has become a defining advantage for boutique and independent owners navigating today’s volatile travel market.

The Authenticity Advantage

Making autonomous business decisions can apply to every aspect of an indie hotel’s operations, and for good reason, Walker noted.

“Independents can define who their customer is and how they’ll deliver a unique experience,” he explained.

In his estimation, independence offers freedom, and authenticity can turn that freedom into a business advantage. This means that many successful indies don’t simply operate differently…they express themselves differently.

“Look at examples like the Populus Hotel from Urban Villages – they don’t just pay lip service to sustainability, it’s embedded in their operations and storytelling,” Walker continued. “Or the Hotel Teatro here in Denver. The restaurant’s called the Nickel because it used to cost a nickel to ride the old tramway. That authenticity becomes part of the business plan.”

That last line is a crucial component of success. Authenticity for authenticity’s sake can be a vehicle for creativity, which may or may not move the needle. When it’s done in a purposeful way, however – where the story is crafted with sincerity but also with a plan – then the rooms fill.

“In the age of AI-driven search and geo-based discovery, storytelling drives visibility,” Walker continued. “Original, authentic content helps guests find and connect with your property even before booking. Independent hotels can leverage that better than anyone.”

Both Day and Walker expressed optimism that independent luxury will continue to outpace the broader market.

“I actually believe independent luxury hotels are on the verge of becoming one of the biggest growth segments,” Day said. “Guests want authenticity and connection. They want hotels to meet them where they are. If that weren’t true, we wouldn’t see so many soft brands trying to mimic that feeling.”