The Hotel Brand Wars: How the Biggest Chains Are Reshaping Hospitality — And What It Means for Owners

By Erik Ransdell and Mike Annunziata

Strands Realty Group

February 2026

On October 6, 2025, something unusual happened. Marriott International, Hilton, and Wyndham Hotels and Resorts each launched a new collection brand on the same day. Within weeks, IHG Hotels and Resorts announced yet another. That kind of timing is not a coincidence. It is the clearest signal yet that the largest hotel companies in the world are locked in an aggressive, coordinated race to reshape how the hospitality industry operates, how hotels are branded, and where growth comes from next.

The numbers behind this race are significant. According to KPMG, hotel merger and acquisition deal value increased 38.2 percent in the first half of 2025, with total deal volume surging 75 percent compared to the prior year. This is not a slow-building trend. It is happening now, and it is accelerating.

This race matters for every hotel owner and investor in the country, whether you operate a 50-room independent property in a secondary market or hold a branded select-service portfolio in a top-tier city. The moves being made right now by the major chains will determine the competitive environment for years to come. Understanding them is no longer optional.

At its core, what is unfolding is a three-part shift. The major hotel companies are fighting to capture the massive pool of independent and unbranded hotels. They are doing so without buying buildings, instead acquiring brands and intellectual property while collecting franchise fees. And the engine making it all possible is the loyalty program, which has become the single most important competitive weapon in hospitality.

Each of these forces reinforces the others. Together, they are changing how hotels are valued, how transactions are structured, and what it takes to compete.

Every Major Chain Is Coming for Independent Hotels

The scale of brand activity in the past twelve months has been extraordinary. Marriott acquired the citizenM brand for 355 million dollars in a deal that closed in July 2025, adding 37 hotels across more than 20 gateway cities including New York, London, Paris, and Rome. Separately, Marriott launched Series by Marriott, a midscale and upscale collection that opened 37 properties in India and expanded to the United States through a partnership with Hawkins Way Capital and its Found Hotels portfolio. On top of that, Marriott rolled out the Outdoor Collection by Marriott Bonvoy, anchored by its acquisition of Postcard Cabins and a strategic partnership with Trailborn, closing the year with more than 30 open outdoor-focused properties.

Hilton responded with the launch of Outset Collection, its 25th brand and eighth lifestyle offering, designed specifically to bring independent boutique hotels under the Hilton flag. At launch, the brand had more than 60 hotels in development, with long-term growth potential of more than 500 hotels across the United States and Canada. Its first property, Slackline Moab in Utah, opened in December 2025 as a 138-room retreat near Arches and Canyonlands National Parks, built for the type of experience-driven traveler that these collection brands are chasing.

Hyatt has been on this path for several years. Its 2024 acquisition of Standard International for 150 million dollars brought The Standard, Bunkhouse Hotels, and The StandardX into its system. Hyatt's lifestyle pipeline grew nearly 50 percent year over year, and since committing to an asset-light model in 2017, the company has quintupled its number of lifestyle rooms across its global portfolio. Wyndham entered the fight from a different angle, launching Dazzler Select to target the more than 16,000 economy independent hotels across the country, calling it the first branded collection in the lifestyle economy space. IHG announced plans for a new unnamed upscale-to-upper-upscale collection brand during its third quarter earnings report in October, designed to complement its existing Vignette Collection, voco, and Garner brands.

The reason every major chain is moving at once is straightforward. More than half of the global hotel supply remains unbranded and independent, according to data cited by Hilton at the time of its Outset Collection launch. That represents an enormous pool of potential franchise revenue. At the same time, new hotel construction has been constrained by elevated building costs, tighter lending standards, and long entitlement timelines. According to CoStar's analysis presented at the 2025 Hotel Data Conference, branded hotels have grown from roughly 12 percent of U.S. hotel inventory in 1990 to 57 percent today. The remaining 43 percent is where the growth is coming from.

Conversions have become the preferred method of expansion. Marriott reported that conversions accounted for 40 percent of its organic room signings in 2023, double the rate from the prior year. Accor reported a similar figure. A Truist equity analyst noted at the time that global conversions historically represented 10 to 20 percent of rooms entering hotel systems, and that the figure had climbed closer to 40 percent. In January 2026, development leaders from Marriott, Hilton, and others told Hotel Dive that conversions remain one of their most powerful growth engines heading into the new year, with locally resonant collection brands serving as the primary vehicle.

The math supports this approach. JLL's global head of hotel research, Zach Demuth, pointed out that in markets like New York, London, and Tokyo, it now costs roughly twice as much to build a new hotel as it does to buy an existing one. That cost gap, combined with the franchise fee revenue these brands generate, makes conversions the fastest and most capital-efficient path to growth.

For independent hotel owners, this creates a competitive environment that cuts two ways. On one hand, more branded supply entering your market raises the bar for guest expectations, distribution, and pricing power. On the other hand, the chains are actively competing against each other for your flag, which gives owners considering conversion more negotiating strength than they have had in years. That leverage can show up in real terms during negotiations — key money contributions from the brand, reduced royalty rates during ramp-up periods, waived or phased property improvement plan requirements, and more favorable agreement terms on duration and termination. When five major chains are all chasing the same pool of independent hotels, the owner sitting across the table holds meaningful cards.

The Chains Are Buying Brands, Not Buildings

One of the defining characteristics of this current wave of expansion is what the major hotel companies are not doing. They are not buying real estate. Since the early 2010s, the largest listed hotel groups have steadily divested billions of dollars in property, recasting themselves as platform businesses that collect fees rather than manage bricks and mortar. Asset ownership among the major chains has fallen from more than half of systemwide rooms in the early 2000s to low single-digit percentages today.

The Marriott-citizenM deal is a textbook example. Marriott paid 355 million dollars for the citizenM brand and related intellectual property. It did not acquire the hotels themselves. The existing citizenM properties, owned and operated by the seller, were placed under new long-term franchise agreements with Marriott. The seller rebranded as Another Star and secured refinancing through J.P. Morgan on the strength of its new Marriott affiliation. Stabilized franchise fees from the existing portfolio are expected to reach approximately 30 million dollars annually, with the seller eligible for additional earn-out payments of up to 110 million dollars tied to the brand's future growth.

Hyatt followed a similar blueprint when it acquired Standard International. The deal was structured around the brand and its creative platform, not the underlying real estate. Since going asset-light in 2017, Hyatt has executed a targeted asset disposition program and reinvested the proceeds into acquiring management and franchise platforms, including Two Roads Hospitality, Apple Leisure Group, Dream Hotels, and Standard International. The result has been a doubling of luxury rooms, a tripling of resort rooms, and a fivefold increase in lifestyle rooms across its portfolio, all achieved without taking on significant property ownership.

This model works because it separates the brand's growth trajectory from the risks of real estate ownership. The hotel company focuses on system growth, loyalty program expansion, and franchise fee collection. The property owner retains the real estate, captures operating profit, and benefits from the brand's distribution and marketing engine. As an article published by Hotel Management in February 2025 explained, the hotel companies are no longer primarily concerned with the profit from individual hotel operations. Their focus is on shareholder returns driven by system-wide fee revenue.

Wall Street has rewarded this approach. According to a March 2025 analysis covered by Yahoo Finance, Bernstein maintained a positive outlook on the asset-light hotel model, noting that despite rising capital intensity through acquisitions, the underlying business remains strong. The firm projected mid-teens earnings per share growth across the major hotel companies, with a preference for Marriott and Hyatt.

For hotel owners and investors, the practical implications are significant. Properties operating under a recognized brand tend to receive more favorable lending terms. A Cornell University study covering 4,000 hotels over 20 years found that brand-affiliated hotels carry lower cash-flow risk than independent properties. In the current rate environment, that difference shows up in financing. Branded hotels in the U.S. are seeing interest rates roughly 25 to 125 basis points lower than comparable unbranded assets, according to data from Avana Capital. Independent hotels also face distribution costs of up to 23 percent through online travel agencies, compared to roughly 11 percent for properties affiliated with Marriott or Hilton, according to CoStar. Of course, independent owners operate without franchise fees, avoid costly property improvement plan cycles, and retain full control over operations, pricing, and identity — advantages that are significant and that many owners have used to build highly profitable businesses. The question is not whether one model is universally better, but which model best fits a specific property, market, and ownership strategy.

The bottom line is that the big chains want your hotel under their flag. They want the franchise fees, the room count, and the system growth. But they do not want to own the building. For owners weighing whether to remain independent, convert to a brand, or prepare for a sale, this dynamic creates real leverage and real opportunity.

Loyalty Programs Are the Engine Behind Everything

If the brand war is the battle and the asset-light model is the strategy, loyalty programs are the ammunition. Every new brand launch and every acquisition is immediately connected to a loyalty ecosystem, and those ecosystems have become massive.

Marriott Bonvoy leads the industry with approximately 228 million members. Hilton Honors is closing fast at more than 210 million, having grown its membership base by 147 percent since 2018. At current growth rates, Skift reported in early 2025 that Hilton could surpass Marriott's membership count by late 2026. Hyatt's World of Hyatt program has tripled to 51 million members. Choice Privileges now exceeds 70 million. Across the industry, hotel loyalty programs have collectively added more than 500 million members since 2018, representing a 69 percent increase.

These numbers matter because loyalty members book more frequently, book directly rather than through expensive third-party channels, and are less price-sensitive than non-members. When Marriott completed its citizenM acquisition, all citizenM hotels were integrated into Marriott Bonvoy, instantly opening the doors to nearly 260 million members. When Hilton launched Outset Collection, every property was plugged into Hilton Honors from day one. Hyatt's Standard International acquisition fed directly into World of Hyatt. Wyndham's Dazzler Select connects owners to Wyndham Rewards.

For independent hotel owners, the loyalty question is worth watching closely. Many well-run independents have built strong direct booking channels, cultivated repeat guests through personalized service, and developed reputations that no franchise flag can replicate. That said, the sheer scale of these loyalty ecosystems — with 200-plus million members searching for redemption options and earning points on co-branded credit cards — represents a demand pipeline that is difficult to match through any single property's marketing efforts alone. That built-in demand is a major reason the chains are competing so aggressively for conversions, and it is also why independent owners should be clear-eyed about how loyalty-driven demand is reshaping their competitive set.

The loyalty advantage shows up clearly in the select-service segment, which has become the focal point for much of this activity. According to JLL's U.S. Select-Service and Extended-Stay Hotel Outlook 2025, revenue per available room in this sector reached a record 78 dollars in 2024, 14 percent above 2019 levels. Demand surged by 232,000 room nights year over year and is projected to surpass pre-pandemic levels in 2025, reaching an estimated 1.02 billion room nights. Since 2021, the sector has generated 62.6 billion dollars in investment liquidity, accounting for nearly half of total U.S. hotel investment volume.

JLL's Demuth attributed this performance in part to a shift in what travelers want. He described select-service properties as catering to experiential travelers who prefer larger rooms and a lower price point than a full-service hotel. He credited Marriott's Moxy brand with opening the door to the idea that select-service hotels could be experiential rather than purely transactional. That shift, combined with the lean operating models of these properties and the demand driven by loyalty programs, has created what JLL describes as the strongest risk-adjusted return profile in hospitality.

The investment community has taken notice. JLL expects portfolio transactions in the select-service and extended-stay space to rebound meaningfully in 2025 and 2026 as financing conditions improve. Dan Peek, Americas President for JLL's Hotels and Hospitality Group, noted in February 2025 that given positive momentum in financing markets and a rising tide of available equity, substantial portfolio transactions are likely to return.

What to Watch Through the Rest of 2026

The brand war is not slowing down. Hilton has stated that Outset Collection will scale toward 500 or more hotels across the U.S. and Canada. Marriott is expanding both Series by Marriott and its Outdoor Collection. IHG's new collection brand is expected to launch in the coming months, initially focused on Europe and the Middle East before moving into U.S. markets. Development leaders across the industry have signaled that conversions will continue to outpace new construction as lending constraints and elevated build costs persist.

At the same time, a significant wave of loan maturities is creating additional pressure. JLL previously noted that approximately 217 billion dollars in hotel loans are set to mature globally, many of which will be refinanced at higher rates. For owners carrying older, lower-rate debt, the refinancing process may prompt a fresh look at brand affiliation as a way to strengthen underwriting and improve loan terms. For others, it may trigger disposition decisions.

The brands themselves are not standing still on the loyalty front either. Hilton introduced a new top-tier loyalty status called Diamond Reserve in 2025, and Marriott's licensing partnership with MGM Resorts has helped it maintain its membership lead by encouraging cross-enrollment from MGM's 40 million rewards members. The loyalty arms race is intensifying in parallel with the brand expansion, and the two are deeply connected.

These dynamics are playing out with particular intensity in the markets we cover. In Southern California, independent coastal and boutique properties are seeing branded lifestyle collections move into beach and resort markets that were once dominated by independents. Owners who have built strong businesses around location, character, and guest loyalty should be paying attention to how these new branded competitors — backed by massive loyalty programs and corporate distribution — are changing the local landscape. In Sun Belt markets across Arizona, Texas, and the Southeast, select-service assets near convention corridors, entertainment districts, and suburban growth centers are prime targets for collection brand conversions. And in secondary and tertiary markets nationwide, where independent hotels make up a disproportionate share of supply, the conversion pitch from the major brands is only going to get louder.

For hotel owners, the questions are practical. Is your property a candidate for conversion to one of the growing number of collection brands, and if so, what terms should you expect? Are you positioned to negotiate from strength while multiple chains compete for independent inventory? If you plan to stay independent, how are you adapting your distribution, marketing, and guest experience to compete against branded alternatives entering your market? What does your competitive set look like today versus two or three years from now as branded supply increases around you? And if you are considering a sale, would brand affiliation prior to listing strengthen your exit valuation, or does your independent track record already tell a compelling story to buyers?

Where We Stand

At Strands Realty Group, we work exclusively with hotel owners, operators, and investors to navigate transactions, evaluate strategic options, and position assets for the best possible outcome. The shifts happening across the industry right now are not abstract. They directly affect property values, operating performance, and the competitive environment in every market we serve.

Whether you are weighing a brand conversion, strengthening your position as an independent operator, preparing an asset for sale, evaluating an acquisition target, or trying to understand how these industry moves affect your specific property, we are here to help. We regularly advise owners on brand conversion feasibility, competitive positioning for independent properties, pre-sale strategies, and how to present an asset to buyers and lenders in a way that reflects its full potential. We bring a hands-on understanding of how these trends translate into real numbers at the property level, and we stay engaged through every stage of the process.

If any of the themes in this newsletter raised questions about your own portfolio or a specific opportunity, we welcome the conversation. The market rewards owners who move with clarity and good information, and we are always available to help you think through what comes next.

Thank you for your continued trust. We look forward to working with you throughout 2026.