Suitcase TheoryA working theory of travelling light

Where You Sleep

The brand on the sign rarely owns the hotel

Most branded hotels are owned by one company, operated by another and franchised from a third, which explains inconsistency between properties of the same name.

Two female backpackers high-fiving in a bright hostel dorm room, enjoying travel adventures.
Photograph by Ketut Subiyanto via Pexels
Editorial note. Independent reporting and analysis. Nothing here is sponsored or paid for. How we work.

Two hotels carrying the same brand can differ enormously. The reason is structural: the brand is a licence, and the building behind it usually belongs to someone else.

Three roles, often three companies

A hotel involves an owner holding the real estate, an operator running the business day to day, and a brand supplying the name, standards and booking system.

Large hotel groups have shifted towards being brand and management companies rather than property owners, because owning buildings ties up capital and earns lower returns.

The consequence is that the group whose name is on the sign may have no financial interest in the building and limited control over what is spent on it.

Standards are contractual minimums

A franchise agreement specifies what the property must provide: bed specifications, breakfast format, loyalty participation, signage and periodic refurbishment cycles.

Those are floors rather than targets. An owner meeting the minimum passes inspection, and an owner investing beyond it does so for their own commercial reasons.

Refurbishment obligations are where the variation shows most, since a property late in its cycle looks dated while remaining fully compliant until the deadline arrives.

Who answers a complaint depends on the structure

A complaint about the room is an operator matter. A complaint about the brand promise is a brand matter, and the two escalate along different routes.

Guests often find the brand's central customer service able to offer loyalty points but unable to compel the property to act, which reflects the contract rather than unwillingness.

The brand's real leverage is the inspection cycle and, ultimately, withdrawal of the licence. Both are slow instruments, and neither helps a guest currently standing at the desk.

Raising an issue with the duty manager on site is therefore more effective than escalating centrally, because the person able to act is inside the building.

Loyalty programmes sit above the ownership

The programme belongs to the brand, so points earn and redeem across properties regardless of who owns them. The property is reimbursed by the brand for a redemption stay.

That reimbursement is generally lower than a paid rate, which is why some franchised properties are less enthusiastic about award stays and upgrades granted centrally.

Reading a listing with this in mind

Individual property reviews matter more than brand reputation, because the brand guarantees a specification and the operator determines everything experienced above it.

A recently converted property, newly carrying a brand it did not have before, is the case where expectations set by the name are least likely to be met.

Questions readers ask

Is an aparthotel cheaper than a hotel?

Per night, often not. For a family or group, or for a stay long enough to cook and do laundry, the total cost is frequently lower.

Do aparthotels have daily cleaning?

Usually not. Servicing is commonly weekly or on request, and this is one of the main practical differences from a hotel.

Where You Sleepaparthotelskitchensfamiliesstays
Greta Lindqvist
Contributing writer, Suitcase Theory

Greta writes about staying functional across time zones without pretending jet lag is optional.

Also by Greta Lindqvist