IHG's 11-hotel European conversion deal reveals what the company is actually buying: franchise fee streams on existing assets at near-zero capital risk. The question for owners considering a flag change is whether the brand premium justifies what they're about to pay for it.
IHG, Marriott, and Hyatt are racing to convert independent midscale hotels into branded properties, and the speed of that race should tell you something about who benefits most. The owners being courted with promises of loyalty contribution and distribution power might want to check the filing cabinet before they sign.
Hyatt's first international Hyatt Select property is a 140-room conversion in Berlin opening in 2028, and the brand is betting that "streamlined amenities" will win over European owners skeptical of American flag economics. Whether that bet pays off depends entirely on a number most franchise sales teams would rather you didn't calculate.
Ladenburg Thalmann just initiated coverage on Apple Hospitality with a neutral rating and called its 34% EBITDA margin the highest in select-service. That number deserves decomposition before anyone calls it a moat.
A 146-room Maui resort bought for $33 million in 2023 is getting the St. Regis treatment by 2027, and the math behind this conversion tells a very different story than the press release.
IHG is celebrating a 2% uptick in business transient revenue. Elena Voss asks what that number actually buys an owner after fees, inflation, and the cost of chasing it.
