A Breakdown of Hotel Brands
- Aarya Patel
- Mar 4
- 12 min read
I have made my case for why I prefer to invest in branded hotels, but I believe that there are many paths to success. Everybody has a different approach to investing, and thus, I would like to introduce you to the trade-offs of investing in other franchises and independent hotels.
Context: Every hotel brand or franchise offers products (also known as flags) that cater to a specific type of traveler. Lets take Hilton, for instance, the Waldorf Astoria will be much different from a Hampton Inn. The Waldorf Astoria serves the Hilton brand as a luxury product that targets the wealthy, whereas the Hampton Inn flag is for a family looking for a comfortable stay. To learn more about these flags or products, I will attach a link to each respective brand's website.

With this understanding of hotel franchises, let's examine these different niches and determine which one is best suited for you.
The Big Four- IHG, Marriott, Hilton, and Hyatt
IHG
IHG, or InterContinental Hotels Group, offers an attractive starting point with the big four. Their ownership requirements are slightly simpler and easier to qualify for. IHG has a lower franchise application fee than Marriott and Hilton. IHG properties are typically priced just under the other three, as they position themselves as the brand that offers the most value for your money. Although you may not be familiar with IHG, here are some of its most well-known brands.
Holiday Inn Express: As the most well-known and renowned IHG flag, Holiday Inn Express is ideal for business travelers and road trippers seeking a reliable stay. Holiday Inn Express provides a complimentary breakfast and accessibility. Holiday Inn Express is found everywhere, from the biggest cities to the smallest towns.
Holiday Inn & Suites: Often confused with the Holiday Inn Express flag, Holiday Inn is a step up from the Express. Holiday Inn provides full-service amenities, such as an on-site restaurant (typically Kems or Burger Theory) and banquet halls. Holiday Inns target business and leisure travelers who want the greatest value for their money.
Candlewood Suites: Candlewood Suites targets extended-stay guests (5+ nights). Think construction companies or travel nurses looking for a place to stay during out-of-town work. The rooms are bigger and more apartment-style, providing a more homey feeling. These hotels do not offer complimentary breakfast and daily housekeeping services. Instead, they provide kitchen utensils and free laundry facilities to meet guests' needs.
Staybridge Suites: A more upscale extended-stay hotel, Similar to the Candlewood Suites, but has larger rooms, more luxurious finishes, and additional amenities (breakfast and evening socials). Staybridge is targeted for those looking for a more extended stay, but are willing to pay for an extra level of luxury.
InterContinental Hotel: The flagship of IHG, InterContinental Hotels are a mainstay in every central downtown skyline. InterContinental Hotels are the epitome of luxury, offering guests a range of on-site amenities, including multiple restaurants, coffee shops, and meeting spaces.
Hotel Indigo is its most famous boutique lifestyle brand (in my opinion). Hotel Indigo tries to match the vibe of its location. Targets younger travelers seeking a phenomenal experience, willing to pay a premium. Hotel Indigo works really well in cities with a strong cultural heritage. (Fun Exercise: Google hotels in different cities and see how they try to capture the experience of the town in their hotel.)
Crowne Plaza is IHG's premium brand for business travelers; Crowne Plaza hotels are equipped with meeting facilities and offer business-friendly amenities. These are typically located in business districts or near convention centers.
Here is IHG's official website to explore all their brands: https://www.ihg.com/content/us/en/about/brands
Hilton
Hilton is one of the world's most renowned hotel brands. With over 200 million members, Hilton has a robust customer base. Hilton is known for their strong corporate support and Property Management System. Hilton does have higher franchise application fees. Let's dive into someHilton'son's flags:
Hampton Inn & Suites: Nicknamed "the king of select-service hotels," Hampton Inn is Hilton's product to IHG's Holiday Inn Express. They are known for consistently high guest satisfaction scores and are the perfect Choice for novice real estate investors.
Hilton Garden Inn: A step up from the Hampton, the Hilton Garden Inn focuses on offering enhanced amenities, such as an on-site restaurant and more comprehensive gyms. These hotels thrive in suburban business districts and near corporate business parks.
Homewood Suites is Hilton's version of Staybridge Suites. Homewood Suites is also an upscale extended-stay brand offering apartment-style rooms with full kitchens and separate living areas. These perform really well near hospitals and military bases.
DoubleTree: Most famously known for its warm chocolate chip cookie welcome, DoubleTree is a full-service hotel that focuses on providing luxurious stays without breaking the bank. A step up from Hilton Garden Inn, DoubleTree has becHilton'son's most viral product in recent times.
Hilton: The flagship hotel of Hilton, located in downtown and airport areas, focuses on providing a luxurious stay for corporate groups, convention attendees, and upscale leisure guests. Hilton Hotels are very popular in the United States.
Waldorf Astoria's ultra-luxury brand represents the pinnacle of hospitality. These properties feature extensive spas, signature restaurants often run by celebrity chefs, and unparalleled service levels. Only viable in major metropolitan areas or exclusive resort destinations where the market can support premium rates usually exceeding $500 per night.
HereHilton'son's official website to explore all their brands: https://www.hilton.com/en/brands/
Marriott:
Marriott, the most valuable hotel franchisor (at least according to the February 2025 stock market), is the most difficult franchisor to be approved for. Marriott will require a management company for first-time owners. Additionally, Marriott has higher franchise application fees. Marriott's products are positioned as luxury hotels and command higher hotel rates. These are someMarriott'stt's most popular products:
Fairfield Inn & Suites: The equivalent of IHG's Holiday Inn Express, Hilton'son's, and Hampton Inn. Fairfield Inn targets business travelers and budget-conscious families seeking dependable accommodations. The Fairfield Inn is attractive to first-time investors due to the Marriott brand value and the relative ease of obtaining management approval.
SpringHill Suites: SpringHill Suites provides only suites in its hotels. They provide guests with value by offering more space at select-service price points. SpringHill Suites are the perfect hotel for travelers looking for separate living and sleeping arrangements.
CourtyaMarriott'stt's upscale hotel is designed for business travelers. They have luxury finishes with a Bistro concept instead of the traditional breakfast. They also look to accommodate their business travelers with flexible meeting spaces, enhanced business centers, and thoughtful lobby space for work.
Residence Inn: The Residence Inn, Rivals IHG's Staybridge and Hilton's Homewood. Residence Inn focuses on an upscale extended-stay experience by providing luxury rooms, evening socials, and other amenities tailored to long-term stays.
Marriott: As the namesake and the flagship hotel, Marriott products are a full-service hotel
focused on providing guests with upscale restaurant experiences, high-end meeting spaces, and premium amenities. These are typically located in high-traffic downtown and airport areas, just like Hilton Hotels.
Sheraton: Another full-service flag similar to the Marriott Hotel. The Sheraton has a historical brand value that recently underwent a major brand refresh to modernize its image. These hotels excel in urban centers near convention facilities, where they can capture both corporate and group business.
Ritz-Carlton: Possibly the most famous and renowned hotel in the world, the Ritz-Carlton is the jewel of the Marriott Crown. The Ritz targets ultra-luxury travelers willing to pay crazy premiums. These are typically found in major markets, such as exclusive resort destinations and urban hubs.
HereMarriott'stt's official website to explore all their brands: https://www.marriott.com/marriott-brands/explore-our-brands.mi
Hyatt
Last but not least, Hyatt is the smallest but is the most niche. Hyatt focuses exclusively on luxury and business guests. You will never find Hyatt properties in secondary or tertiary markets. Hyatt's select service and extended stay products offer lower franchise application fees, making it a good choice for first-time investors. These are some of the Hyatt products you may have heard of:
Hyatt Place is a select-service brand that competes with Holiday Inn Express, Hampton Inn, and Fairfield in primary markets. They stand out from the rest by offering larger-than-average rooms with separate living and sleeping areas (varies from location to location).
Hyatt House: An extended-stay brand that does not really feel like one. With a more boutique hotel feel, Hyatt House offers the average extended stay experience, complete with apartment-style living, and also provides upscale amenities, including bars.
Hyatt Regency: One of Hyatt's many luxury brands found in every downtown area. Known for its high-end corporate hotel offerings, Hyatt Regency features multiple food and beverage outlets. The Regency is known for its proximity to convention centers and is often a viable spot for group events.
Hyatt Centric is a lifestyle luxury brand developed for leisure travelers. Hyatt Centric features include locally-inspired design, unique food and beverage concepts, and prime downtown locations. Performs best in urban markets with strong leisure demand and vibrant cultural scenes, where guests are willing to pay premium rates for distinctive experiences and central locations.
HereHyatt'stt's official website to explore all their brands: https://www.hyatt.com/development/ourbrands
Trade-Offs
Investors choose to buy a Big Four hotel brand because these are the most recognizable among consumers - they are household names. Due to their brand recognition, these hotels experience greater stability during potential economic downturns. Well-established connections with customers through member loyalty programs (i.e., IHG One Rewards and Marriott Bonvoy) and big marketing often make hotels within these brands the top choices for lodging among travelers.
However, with the name comes a price. Buying a hotel under a Big Four brand will mean heftier franchise fees, yet it is simply a cost that comes with the stability and higher revenues of these brand hotels. It is also important to note that these assets are typically more expensive to invest in due to the higher revenues. For that reason, tapping into Big Four hotels often requires a higher net worth or investment as part of a consortium.
I recommend that if you have never invested in a hotel and are set on buying a Big Four property, partner with an experienced hotelier. After gaining some experience and credibility, you can always branch out on your own.
The Trusty Three - Best Western, Choice Hotels, Wyndham
Best Western: Best Western is one of the most unique franchises, and I actually really like their model. When you become a franchisee of Best Western, you become a part-owner of the company. The member-owned cooperative model aligns the interests of franchise owners with those of the corporation. As a result, Best Western has some of the lowest franchise application fees in the industry. Best Western brands put heavy emphasis on guest service and experience. Let's take a look at some of these:
Best Western: Appropriately named, Best Western is the core product of Best Western. The Best Western flag offers travelers a budget-conscious stay, comparable to Holiday Inn Express or Hampton Inn, while providing comfort and quality standards. Best Western is highly flexible in property design, making it an ideal candidate for converting existing hotels and motels.
Best Western Plus: One step above the Best Western flag, Best Western Plus offers more
upscale amenities like upgraded furniture, more breakfast options, gyms, business centers, and event spaces. Best Western Plus targets guests looking for more comfort for less. Best Western Plus is found in leisure markets, such as regional tourist attractions, where guests value extra amenities but remain price-sensitive.
Here is Best Western's official website to explore all their brands:
Choice Hotels:
Choice Hotels is the fastest-growing of the Trusty Three, following the acquisition of Radisson Hotels. They have a massive reservation system that allows their loyalty members to choose from a wide range of price points, like budget-friendly Sleep Inns to more upscale Cambria Hotels. They have very low franchise application fees, making them a perfect place to start for first-time investors. Choice Hotels has the most diverse portfolio of hotels. Let's set aside some of the most recognizable ones:
Comfort Inn & Suites' midscale brand to compete with Holiday Inn Express and Best Western. Comfort Suites are known for their complimentary hot breakfast. These are attractive to first-time investors seeking brand support without the premium brand costs.
Clarion Pointe: Clarion Pointe, along with some of their other flags, is Choice’s attempt to
redefine the hotel tier list. Clarion Pointe is a peculiar hybrid between an economy hotel and a luxury hotel. Clarion hotels have on-site restaurants, meeting spaces, and amenities comparable to those of luxury hotels. However, they are not as refined and thus sold at a cheaper price point. These hotels are ideally located near convention centers, where they can capture overflow or business travelers seeking a more affordable option.
EconoLodge: An authentic economy brand focused on providing clean, comfortable rooms at budget-friendly prices. These properties attract price-sensitive travelers, construction crews, and budget vacationers looking for a recognizable name at the lowest possible price point. The simplified operations and lower investment requirements make EconoLodge suitable for smaller markets and highway locations where rate sensitivity drives booking decisions.
MainStay Suites is Choice's extended-stay brand offering apartment-style accommodations with full kitchens and separate living spaces at midscale price points. These properties appeal to travelers needing longer-term accommodations but at more accessible rates than upscale extended-stay brands. They perform well near regional hospitals, manufacturing facilities, and smaller corporate centers where extended business trips are common but luxuries aren't required.
Here's Choice’s official website to explore all their brands: https://www.choicehotels.com/about/brands
Wyndham Hotels and Resorts:
Wyndham is the friendliest hotel brand for first-time hospitality investors. They are very flexible with property conversions and have low initial investment requirements. Wyndham customers are budget-focused and are happy to forgo some of the luxuries for a lower price point, making it one of the easiest to operate for first-time owners. Let's look at some of their products and see if this brand will fit you:
Days Inn & SuitWyndham'sam's cornerstone economy brand offering clean, basic
accommodations at budget-friendly prices. Days Inn properties attract cost-conscious road trippers, budget business travelers, and travelers making quick overnight stops. Their lower investment requirements and simplified operations make them accessible for first-time investors, particularly in highway-adjacent locations and secondary markets where travelers prioritize value over amenities.
Super 8: An economy icon with thousands of locations, offering consistent, no-frills accommodations at some of the most competitive price points in the branded hotel space. Travelers are seeking a recognizable quality at a minimal cost. Their standardized building designs and efficient operations make them suitable for highway exits, rural markets, and price-sensitive areas where price is the primary booking factor.
La Quinta: A midscale brand that punches above its weight class, offering enhanced amenities like complimentary hot breakfast and spacious rooms at competitive rates. These properties appeal to both business travelers and families who appreciate quality without premium pricing.
HereWyndham'sam's official website to explore all their brands: https://www.wyndhamhotels.com/wyndham-rewards/our-brands
Trade-Offs
The Trusty Three, as I like to call them, are hotels or motels that provide an economical stay. These mid-tier brands target guests, such as blue-collar workers or vacationing families, who are looking for clean bathrooms, comfortable beds, and basic breakfasts without any unnecessary extras (as I mentioned earlier). Not to say that these franchises do not create quality experiences for guests, in fact, some of the top brands, like La Quinta and Best Western Plus, compete with the best.
The Trusty Three is a perfect investment for first-time hospitality investors. In fact, a Days Inn was where my hospitality journey started, because these three brands were the first time hotel/motel investors were welcomed.
Buying and operating a Trusty Three flag is a straightforward process due to the less restrictive management requirements, brand standards, and franchise fees. As this is where I recommend first-time investors begin, I would like to delve a little deeper into the pros and cons of investing in a Trusty Three property.
Management Requirements: doesn't need extensive hospitality experience to qualify as an owner-operator, and it can be a great stepping stone into owning Big Four assets. However, with looser requirements come the pitfalls of a bad brand reputation due to a handful of operators mistreating their investments.
Brand Standards: Relative to the Big Four, the brand standards of the Trusty Three are way more easygoing. Once again, however, this is a double-edged sword. One hundred percent, it will be simpler to remain in good standing with the brand. Still, the less stringent standards and quality differences within the same flag across a country will cause guests to have a variety of experiences (some of which will be great and others that will be terrible).
Franchise Fees: The franchise fees for the Trusty Three are lower than those of the Big Four, which, at the right hotel or motel, can help investors capture more profits. On the other hand, these lower franchise fees are due to the fact that the loyalty programs, compared to the Big Four, are much less desirable. Don't want to stay "at "but get brands when, for $20 more, they can get the Hampton Inn experience. Obviously, the previous sentence was a blanket statement because there is a vast difference in pricing between the lower tier of the Big Four and the motel products of the Trusty Three.
Ultimately, the Trusty Three is a great starting point for your hospitality journey. It can teach you the branded hotel game without exposing you to many of the loopholes that the Big Four throws your way. That's not to say these aren't great for seasoned investors. With the correct location and flag, the Trusty Three can kill the Four's supposed superiority. A potential positive asymmetrical return we aim to achieve is to acquire these hotels in markets where they are in high demand and can generate Big Four-type revenues. Think Destin or Galveston—places where affordable hotels/motels are in high demand.
Independent Hotels
The easiest type of hotel brand to own is independent hotels. These are similar to your local hotels or motels that do not have any affiliation with Major Brands. Consider bed and breakfasts or motels/hotels that are locally owned and operated in your town or region. However, there are larger-scale independent hotels. In fact, I came across one just the other day that was in the DFW Airport submarket, and it was one of the nicest hotels I have ever seen, with the numbers to back it up.
Trade-Offs
The advantages of owning independent hotels include no franchise fees, minimal to no hotel experience required to purchase an existing hotel or build one from scratch, and lower operating costs. The major downside to independent hotels is that they compete with established brands that have a loyal customer base.