The benefits of adopting a global hotel brand have been a recurring topic at almost every industry conference, with representatives of major hotel chains extolling the advantages of joining their network. Undeniably, global branding and partnering with a chain bring numerous advantages, both tangible and subtle, that cannot always be measured by hard numbers. But is that all there is to it? Let’s take a closer look at what joining a network truly offers, as well as the limitations and obligations it entails. Is it worth committing, or is staying independent a better choice?

Start with a Little Research

Over 36,000 hotel rooms, about a quarter of all available rooms in Poland, operate under global hotel brands. Chain-affiliated hotels dominate in the 5-star segment, accounting for approximately half of the total supply, while in the 4-star segment, the share is around 30%, and in 3-star hotels, nearly 20%. An additional 13,000 rooms under global brands are in the planning or construction phase.

Several global hotel chains operate in Poland, representing around 60 different brands. In terms of the number of rooms, the most prominent players are Accor, Hilton Worldwide, Marriott International, Radisson Hotel Group, and InterContinental Hotels Group. Other hotel groups are keeping a close eye on Poland, scouting for debut opportunities. While the options seem abundant, on mature markets, most brands that fit a given project optimally may already be “taken.”

Chain hotels dominate in large cities, but in recent years, global brands have increasingly ventured into regional cities. After years of hesitation, chains have also embraced Poland’s top tourist destinations such as Zakopane, Szczyrk, Kołobrzeg, Świnoujście, and even smaller resorts. The Masurian Lakes region recently welcomed its first branded resort hotel. This shift towards leisure destinations has been partly driven by the COVID-19 pandemic, which steered tourism closer to nature and bolstered domestic travel. Moreover, the suspension of bank financing for hotel investments amid high demand for apartments spurred a boom in condohotels, including those under international brands.

Historically, global brands were almost exclusively reserved for hotels with at least 100–150 rooms. While economies of scale still favor larger properties, today smaller hotels, especially those in higher standards, also have opportunities to join the network. Chains have introduced numerous brands tailored for boutique projects, including more flexible “soft brands” suitable for diverse investments, including conversions and adaptive reuse.

While the variety of options makes global branding accessible to a broader range of hotels, not every project or location aligns with a chain’s strategy or standards. Networks are discerning partners with clear expectations and strict requirements.

Impulse or Rational Calculation?

While a touch of “chemistry” is essential for a successful partnership, business “marriages” should be rooted in logic. The decision to join a hotel network must be tailored to each investor and property and should result from thorough analysis and calculation. Equally critical is selecting the right brand that matches the hotel’s standard, character, and offerings.

Broadly speaking, global branding enhances a property’s prestige, credibility, and predictability, particularly valued by business travelers and international tourists. Hotel networks ensure consistency in standards and experiences, crucial for guests familiar with the brand.

For multi-functional projects, a brand creates a “halo effect,” boosting the destination’s appeal and positively impacting other investment elements, such as commercializing office spaces. Chains also conduct ongoing global marketing efforts, reducing the need for investors to create, implement, and promote their own brand. However, this does not exempt hotels from conducting their own marketing and advertising efforts.

Networks also have the advantage of anticipating trends and evolving guest preferences thanks to their global reach, resources, and experience. Recent innovations include lifestyle brands with redesigned common spaces, combining reception areas with dining zones, introducing co-working spaces, quiet zones, or gaming areas—an adaptation to changing lifestyles and travel habits. These changes require long-term research, serving not only to attract new customers but also to retain them—an increasingly challenging task.

Technological advances such as self-check-in, guest communication apps, and the ability to record preferences are no longer exclusive to networks but require independent planning and investment. Still, one of the most significant advantages of joining a network is access to global distribution systems and well-established loyalty programs, driving reservations.

What’s the Cost of Partnership?

Regardless of the agreement type (franchise, management, or lease), partnerships with hotel networks are long-term commitments, typically spanning 20 years. Both parties must fulfill their contractual obligations, and investors must accept limited flexibility in hotel design and adherence to the chain’s often stringent standards, which can increase the investment budget. Networks also impose operational and technological standards, requiring specific systems and rigorous reporting.

Financial obligations are a central consideration, including one-time fees like application and technical support fees, as well as recurring charges for licensing, marketing, and management. The agreement may also outline penalties for non-compliance with the terms.

The scope and significance of these benefits and obligations vary between networks and brands. Ultimately, the decision depends on factors specific to the project, such as its scale, standard, guest segmentation, location, and competitive landscape.

Happily Ever After?

Once all doubts are resolved, the network and brand are selected, and negotiations are concluded, the real test begins. From design approval to adherence to standards, the network’s role is advisory and supervisory, while the investor ensures execution. Training, pre-opening tests, and HR support—key areas where networks offer value—prepare the hotel for a strong debut.

Investors benefit from the expertise of task forces—teams from other properties within the network—during pre-opening stages. Relationships among staff at sister properties also foster valuable knowledge-sharing, further strengthening the operation.

To Commit or Not to Commit?

Independence offers agility and creativity, while networks provide scale, support, stability, and prestige. The decision must be based on a thorough evaluation of the project and the investor’s goals, along with the network’s offering.

We wish you success in your partnerships, culminating in celebratory porcelain anniversaries after 20 productive years together.

Magdalena Konaszewska & Katarzyna Romanowska
Hotel Professionals, Hotel Professionals Management Group, NextCare Technology Solutions