Branded vs. Independent Hotels: Choosing the Right Path
Flag fees buy distribution and trust. Independence buys margin and flexibility. The right answer is asset specific.
Gen H operates both, which means we have no structural incentive to push an owner in either direction.
In a compressed leisure market with a strong local identity, independence often wins on both rate and margin. In a corporate market with heavy loyalty demand, a flag frequently pays for itself.
The decision should be underwritten, not assumed. We model both cases before recommending either.