For hotel owners, the debate over whether to stay independent or join a soft brand is becoming less about philosophy and more about economics. While major hotel companies continue to expand their collections through acquisitions and conversions, owners are increasingly demanding proof that a brand will deliver enough incremental business, financing advantages and loyalty-driven demand to justify the costs and operational constraints that come with affiliation.
"The key is profit," said Jennifer Barnwell, president of Curator Hotel & Resort Collection, a collection of hand-selected independent hotels and resorts worldwide. While brands may promise topline growth, owners ultimately need to determine whether that additional revenue reaches the bottom line after accounting for fees, required investments and long-term contractual obligations.
“An owner has to understand all of the expenses associated with the brand including the fees and other costs that will appear in the profit and loss statement,” she said. “Owners should request projections from the brand, and carefully consider the level of brand saturation that exists in the market. If a brand is willing to stand by their projections then perhaps there are terms and conditions that can be written into the contract to protect the owner given the long-term nature of these brand contracts.”
Justin Jabara, president of Meyer Jabara Hotels, said the company's decision to affiliate an independent property with a soft brand came down to economics rather than branding. "We needed systems and distribution and were not willing to give up the brand equity we had built at the hotel," he said. While the property retained its identity, design and food-and-beverage concept, the affiliation provided access to reservations and distribution systems, loyalty-program members and global sales resources that would have been difficult and costly to replicate independently.
The Business Case Comes First
For Gabriel Perez, COO of hotels at The Indigo Road Hospitality Group, the decision comes down to whether a brand can produce measurable value beyond what an owner can achieve independently.
"We don't approach the question ideologically," Perez said. "We approach it economically and strategically."
Perez noted that hotel size, market dynamics, financing structure, demand mix and ownership objectives should all factor into the decision. According to Perez, boutique hotels in the 40- to 80-room range can often succeed without the support of a major brand, particularly when they are able to establish a strong local identity and differentiated guest experience.
“We also look closely at the market, competitive landscape, demand generators, and overall business mix,” he said. “In a market heavily dependent on Sunday-through-Thursday corporate demand, for example, a soft brand with a robust loyalty and distribution platform may provide meaningful incremental value.”
His perspective reflects a growing sentiment among owners who increasingly view branding decisions through the lens of return on investment rather than industry trends.
"As owners become more sophisticated, they're asking harder questions about exactly where the value comes from and whether the economics truly work in their favor," Barnwell said.
Preserving Identity in a Branded World
That sentiment was echoed by Richard Sandoval, CEO of Spire Hospitality, whose team evaluated whether the company’s Topnotch Resort in Vermont would benefit from a soft-brand affiliation.
For Topnotch, the property's longstanding ties to Stowe and established reputation within the destination made remaining independent the stronger option.
“The central question is whether a soft brand would genuinely strengthen that identity or simply overlay another one,” he continued. “In some situations, affiliation can add real value. For this property, however, the balance has so far favored remaining independent and preserving a direct connection to place.”
Sandoval said independent hotels often possess an authenticity that becomes more difficult to maintain when operating within brand guidelines.
"In many cases, the hotel's story is already deeply connected to the destination and local community," he said. "Owners need to evaluate whether a brand enhances that connection or dilutes it."
That emphasis on place-making continues to resonate with travelers seeking experiences that feel unique rather than standardized.
Is AI Closing the Gap?
A common thread among the operators was the belief that many advantages once reserved for branded hotels have become more accessible through third-party technology providers — and artificial intelligence is closing that gap further.
Perez pointed to advances in revenue management, CRM, digital marketing, distribution, business intelligence and reputation management platforms that have significantly narrowed the competitive gap between independent and branded hotels. "That has significantly leveled the playing field," he said.
Technology has given independents access to sophisticated commercial tools that were once difficult or impossible to deploy without a major brand partner. As a result, operators say the question is no longer whether independents can compete, but whether brands can provide advantages beyond what technology can already deliver.
Sandoval similarly said his company relies on a combination of direct booking channels, destination partnerships, repeat guests and an independent loyalty platform to support performance without sacrificing local control.
“Being an independent property has always been the more challenging path because you are not part of the big-name machine, loyalty program and procurement program,” Barnwell said. “But independents can certainly gain access to large scale distribution through the OTAs and the various credit card travel programs plus the many agency affiliations. There are perhaps more distribution channels now than ever if you include social media platforms and LLMs.”
Technology and distribution, however, only get someone through the door, Perez warned. “Our real competitive advantage is much more fundamental: Genuine hospitality, memorable experiences, exceptional food and beverage, strong local relevance, and disciplined hotel profitability,” he said.
Kim Bardoul, founder of Bardoul Hotel Advisors, an advisory firm to boutique hotels, agreed. “A true independent boutique hotel that focuses on the experience as much as accommodation, markets itsself through a storyline, tailored amenities, unique identity, thoughtful programming, interesting design and community immersion,” she said. “If this is done really well, the guest not only goes home and shares, but returns for the experience again.”
Bardoul suggested that the simple gestures, like a complimentary glass of champagne upon arrival, a take-home memento, a discounted return stay, can serve as differentiators and entice loyalty.
Where To Add Value
Affiliation can provide access to distribution channels, loyalty programs, sales and marketing resources and, in some cases, more favorable financing opportunities, Barnwell said. She noted that lenders can be more comfortable underwriting branded assets, particularly during acquisitions or refinancing efforts.
Perez agreed that brands can make sense for properties with larger room counts or markets heavily dependent on corporate travelers, where loyalty programs and reservation systems may drive meaningful incremental demand.
"Lenders and institutional investors frequently view branded hotels as less risky because of their established systems, standards and historical performance," Perez said. “There are also markets and hotel sizes where the distribution and loyalty contribution of a brand can be extremely valuable.”
Jabara said the affiliation helped address a weak midweek business-transient base and heavy reliance on online travel agencies. Since joining a soft brand, he said, ADR and RevPAR have improved as midweek occupancy increased and more direct and corporate business displaced higher-cost OTA demand.
"Brand fees are a new and recurring cost we didn't have as an independent, and that's the honest trade-off," Jabara said. "But it's a fraction of what it would have cost us to build and maintain the same reservations, distribution and loyalty infrastructure on our own."
Bardoul identified similar motivations. Owners often pursue affiliation for access to broader marketing reach, reservation systems and loyalty programs, while corporate travelers remain particularly attracted to points and member benefits.
Bardoul also noted that some hotels facing increased competition, changing demand patterns or renovation needs may view soft brands as a pathway to improved performance and stronger market positioning.
Scale Versus Autonomy
Yet operators say those advantages must be weighed against potential compromises.
Joining a brand typically requires adherence to standards, technology requirements, purchasing mandates and operating procedures. Barnwell said independent owners are often trying to preserve control over the property's operations and guest experience, while brand affiliation inevitably requires giving up some degree of autonomy.
“There may be flexibility or a waiver here and there, particularly within a soft-brand structure, but overall there will be certain things that must be done as part of the affiliation and other things that may no longer be possible in order to remain aligned with the brand,” Barnwell said.
For Perez, operational flexibility remains one of independence's greatest strengths.
He cited the ability to adjust restaurant concepts, menus, programming, partnerships, technology choices and marketing strategies without navigating brand requirements or approval processes.
"Independence allows each hotel to evolve according to its own market conditions and guest expectations," Perez said.
“Most importantly, we reserve the ability to pivot,” he continued. “Hospitality is ultimately about people, and people don't always fit neatly into a global operating manual. Independence gives our teams the freedom to adapt to what guests need in real time and to create memorable moments without navigating layers of approvals.”
The Burden of Proof
For owners evaluating their next move for their hotel, the consensus from operators appears straightforward: Neither independence nor affiliation is inherently superior.
Instead, the decision hinges on whether a brand can solve a specific business challenge and create enough incremental value to outweigh its costs.
As Barnwell put it, owners should focus on three core questions: Whether a market is already saturated with a particular brand, whether the economics support the additional fees and obligations, and whether affiliation strengthens the property's financing position.
While Jabara believes today's soft brands offer a stronger value proposition than they did five years ago, he also sees a more crowded marketplace.
"The distribution value is still real. The positioning value has thinned," he said. "When every major system has two or three collections and the pipelines keep growing, 'independent hotel with a soft brand' is no longer a distinguishing statement."
Sandoval suggests owners begin with the asset, not with a philosophical preference for branding or independence. “Ask what problem the affiliation is intended to solve, whether the resulting business would truly be incremental, whether the brand strengthens or weakens the property's identity, and whether the full financial and operational cost is justified,” he said.
The right answer depends on which approach creates the greatest long-term value for the individual property.
There are certainly circumstances where brand affiliation is the right decision, Perez said. But when the market, concept, management platform and capital structure support independence, the owner can potentially achieve something very powerful: A hotel with a truly individual identity, greater operational flexibility and the opportunity for stronger long-term financial returns.
This article was originally published in the August/September edition of Hotel Management magazine. Subscribe here.