Is a franchise really the safest bet for your next luxury hotel? 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 The outdated assumption that flag affiliations guarantee success is crumbling.

Independent luxury & upper upscale hotels perform better

STR data clearly shows that independent hotels in the Upper Upscale and Luxury segments have higher 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 – for reasons I will explore in detail immediately.

This performance advantage becomes even more significant when franchise fees are factored in, driving an even wider gap in Net Revenue Per Available Room (Net RevPAR).

Some investors also 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 and truly authentic experiences.

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.

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?

A brand-first approach—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.

So ask yourself: Why build value for a franchisor when you can build it for yourself?

At Motiva, we have 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?

Michael Svec is a hotel branding expert and founder of Motiva, an award-winning branding firm focusing on hospitality, with locations in Vienna, Belgrade and Porto Heli. We help hotel owners, operators, developers, and investors all over Europe build strong, scalable, and profitable brands—from boutique hotels and luxury resorts to entire hospitality portfolios.

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