In my 20 years of working with the world’s most recognized hospitality brands across the USA and Canada, one of the most valuable lessons I’ve learned is this: Over the years, the world has changed, but one truth remains: as hoteliers, our greatest power lies not just in what we negotiate, but in how we serve — our teams, our guests, and our brands. This is the story of how loyalty and leverage made all the difference.
Hospitality thrives on relationships. A true leader does not see their brand as a distant authority, but as a partner in a shared endeavor. Brand affiliations bring incredible value: standards, systems, training, marketing power, and the credibility of a trusted name above your door. But they also come with fees, brand mandates, property improvement plans (PIPs), and compliance costs that can strain an owner’s bottom line if not managed carefully.
The art lies in learning how to respectfully but firmly negotiate with your brand, while remaining a loyal partner who upholds its reputation and adds value back to the system. When you approach negotiations as a quest for shared success, brands see you not as a challenger but a collaborator committed to mutual growth.
You Are the Brand’s Greatest Asset – Use The Partnership Mindset
Too often, owners feel they must accept every brand mandate without question because they fear damaging the relationship. In reality, corporate representatives expect negotiation as part of the process. The strongest partnerships are not one-sided, they are built on transparency, constructive challenge, and shared goals.
Negotiating protects your investment, ensures your property operates sustainably, and shows the brand you are a sophisticated operator who takes both performance and profitability seriously.
Think of your team and property as living, breathing ambassadors for the brand. Brands measure loyalty not just by compliance, but by the “wow” moments created on the floor. The remarkable kindness, the extra attention to detail, the seamless guest experience that transforms a casual visitor into a lifelong advocate.
Negotiation isn’t just about dollars. It’s about the ability to offer ideas, data, and solutions that elevate the brand’s reputation with every guest who walks through your doors.
Transformational leaders are always looking ahead, ready to drive innovation and operational excellence. They leverage technology, empower team members, and foster a sense of pride that radiates outward to guests and, ultimately, back to the brand. Here are some tips I used and encourage others to use as well.
Three Keys to Firm but Loyal Negotiations
- Know the Brand’s Priorities: Every brand has core non-negotiables such as guest experience, cleanliness, brand design consistency. Don’t waste credibility fighting these. Instead, focus on areas where there is flexibility, such as phasing upgrades, adjusting timelines, or finding cost-effective alternatives that still meet brand design intent.
- Frame Your Request as Partnership-Driven: Don’t position your ask as, “This is too expensive for me.” Instead, frame it as, “Here is how we can achieve your brand standard while also ensuring financial health for this property, which allows us to reinvest more in driving guest loyalty.” This shows you’re meeting mutual goals, not just your own.
- Bring Data to the Table: Brands respect numbers. For example, if a design mandate requires new FF&E within three years but your recent guest satisfaction surveys and RevPAR indices are strong, use that data to negotiate an extended timeline. You aren’t avoiding compliance; you’re making a smarter business case for sequencing improvements.
Here are three critical red flags to watch for before you sign on the dotted line:
The Renovation Timeline
A few years ago the brand required a costly full guestroom renovation within five years of conversion. We knew our property had been updated just two years earlier. Instead of outright rejecting the timeline, we proposed a phased approach backed by STR market data and guest satisfaction scores, which showed our product was still outperforming comp sets.
The brand agreed that instead of re-renovating everything, we would refresh soft goods at year five and push case goods replacement out to year eight. The result: significant cost savings for ownership, compliance maintained, and a stronger long-term partnership with the brand.
At the same time, if the PIP isn’t clearly scoped or scheduled, you could face surprise capital expenditures. What’s packaged as a “light upgrade” could unexpectedly escalate to a full lobby or guestroom overhaul. It’s not uncommon for brands to require substantial property upgrades at points like sale, relicensing, or even on a set renovation cycle – costs which can run into millions of dollars and seriously disrupt cash flow.
What to do:
- Insist on specific detail in the PIP: what’s required, the timeline for each improvement, phasing, and, where possible, pre-agreement on “brand standards” tailored to your asset.
- Negotiate maximum time and spend limits or staged implementation.
- Document any waivers or flexibility in case of unforeseen circumstances (e.g., economic downturn or supply chain issues).
Driving Loyalty Through Flexibility
At another property during a downturn, we negotiated reduced marketing contributions for six months. In return, our hotel committed to allocate those funds toward training in service culture, which directly impacted guest satisfaction scores.
The brand saw that flexibility not only made financial sense but also enhanced their reputation with guests. By proving our loyalty even in negotiation, we deepened mutual trust.
Loyalty Is a Two-Way Street
Remember: brands want loyal, high-performing owners. Loyalty doesn’t mean blind agreement; it means respectfully challenging in ways that benefit the system long term. A compliant, unprofitable owner is of no use to a brand.
Treat every negotiation as a chance to demonstrate your commitment to growing the flag you fly, not just reducing your expenses. The secret is finding that balance, protecting your property’s financial health while ensuring the brand continues to shine.
Not every flag brings delivered value. If your agreement doesn’t obligate the brand to measurable deliverables – such as marketing, booking performance, ongoing training, or regional management support – you may end up paying steep fees simply for using the logo, with little operational benefit.
What to do:
- Ensure the brand is contractually accountable for tangible support: participation in the reservation system, defined marketing spend, periodic staff training, and brand-wide consistency standards.
- Request clear definitions of any promised support or services.
These aren’t just legal details. They are operational and investment risks that can determine your hotel’s long-term success.
Remember:
Before you commit, remember: you’re not just buying a logo; you’re buying a partnership. Do the fine-print work up front, and never be afraid to negotiate or walk away.
After years in the industry, I can assure you: brands remember owners who build trust by being loyal partners and smart negotiators. Done right, your reputation will precede you, and the relationship will feel less like a hierarchy and more like a collaboration.