Social-first and story-driven, the new era of hospitality is here.
By RJ Jayswal
Hospitality is entering its most exciting chapter – and it’s being written by hoteliers. Nowhere was it more evident than at AAHOACON25 in April. Conversations were buzzing with excitement for changes happening in the industry, many of which are creating better margins for hotel owners.
For too long, hotel owners have been held back by franchise giants, following rigid systems that stifle creativity and reduce profit margins in exchange for brand affiliation. The model was simple: Align with a well-known brand, pay the associated fees, and implement operational guidelines. However, this approach has, for many, meant a departure from the true essence of hospitality.
The hospitality space is changing fast. Today’s travelers scroll social feeds for authentic experiences, valuing peer reviews over traditional ads and “pay to play” results. Platforms like TikTok and Instagram shape booking choices, demanding that hoteliers meet guests where they are. Adapting a social-first approach is now critical, offering individual owners a chance to build authentic brands and connect directly with this new wave of travelers.
Taking the Leap to Independence
Franchise fatigue is real – ownership is back.
Profitability has shifted. Owning and running a branded franchise often means squeezing margins and surrendering identity. Meanwhile, big chains are snapping up independent lifestyle brands built by hoteliers like you – because they know where the future is heading.
Consider some of the most recent acquisitions by major brands. Two years ago, Hyatt purchased Dream Hotel Group, adding Dream Hotels, Chatwal Hotels, and Unscripted Hotels to its portfolio. In 2024, Hilton bought Graduate Hotels for $210 million. Just this year, Marriott expanded their “affordable luxury” footprint with the acquisition of CitizenM for $355 million.
These moves indicate that the financial world sees a much greater value in independent, unique hotels compared to standard ones. Where typical hotels might be valued at three to five times their revenue, independent brands are getting valuations of 15 to 25 times their revenue.
The focus is no longer solely on operational tasks; a creative approach to building a unique brand is becoming vital. The next wave of hoteliers isn’t impressed by brand flags – they’re drawn to meaning, innovation, and ownership. They want to create, not comply. They’re looking for models that bring both freedom and profitability.
Cutting Out the Middleman
Traditional online travel agencies charge 15 to 20 percent commissions and reward volume over value. They showcase branded hotels higher up in search results because of long-term agreements with hotel chains, which include preferred listings and promotional priorities, leaving independent hotels buried under filters.
An alternative approach – direct connect – gives hotel owners the power to retain more of their hard-earned revenue. It cuts out the middle layers, improving communication with guests and letting personal connections grow. Direct connect leads to higher margins, better net operating income (NOI), and full control over your guest experience.
Meeting Guests Where They Are
Just as retail evolved from brick-and-mortar to e-commerce and social commerce, the travel industry will go through a similar transformation.
Today’s travelers don’t browse through listings, they scroll. They don’t want options – they want experiences. They trust recommendations over ads, and authenticity over algorithms. Nearly 62 percent of TikTok users in the U.S. report using the platform for reviews and recommendations. Meanwhile, 75 percent of travelers use social media as a source of inspiration.
As social travel grows, independent hotels have the chance to shine. They’ve mastered operations. They know RevPAR, occupancy, and ADR like the back of their hand. But now, it’s time to build something bigger – their own brands. There’s never been a better time to make this leap.
Artificial Intelligence Levels the Playing Field
AI-powered tools provide capabilities that were once only available to larger chains due to costs. The increasing accessibility of sophisticated technology is undeniable for independent hotels. AI is now automating key tasks, from managing bookings and budgets to guest communications. It also streamlines payment processes, reducing manual workloads. Automation frees up valuable time and resources for hoteliers. Affordable contactless tech, like mobile check-in, further enhances guest satisfaction.
Some platforms focus specifically on guest communication and reputation management. Hoteliers can automate personalized messages throughout the guest journey, from pre-arrival to post-stay, building trust and ensuring guest satisfaction.
AI is leveling the playing field. Independent hotels can now compete with the big chains by implementing the right tools. Their owners can enhance the guest experience without a massive investment, allowing them to focus on their unique hospitality.
Tomorrow’s Travel Platform
Travelers are looking for a social-first and emotionally intelligent platform. Guests can discover properties through real stories, immersive content, and community engagement – not just star ratings and price filters. Hotels with character will shine, as their story becomes part of someone’s journey.
The message is clear: The future of travel belongs to the bold – hoteliers who are willing to embrace change and tap into the authentic connections that today’s travelers crave.
By understanding the power of social-first discovery, reclaiming control through models like direct connect, and focusing on building unique brands, independent owners are no longer bound by old playbooks.
This is an era where individuality is valued, and the ability to tell your own story directly translates into greater success. Genuine hospitality is back in fashion.
Romal (RJ) Jayswal is a visionary co-founder and CEO at StayNow, a next-generation AI-powered social travel platform revolutionizing how travelers connect with independent hoteliers. Drawing on years of experience in hospitality revenue optimization, RJ is passionate about empowering hoteliers to thrive by controlling their businesses and delivering exceptional, personalized guest experiences. Prior to StayNow, RJ founded Predictive Minds, an advanced revenue management system for the hotel industry, providing him with invaluable insights into the technological and economic pressures faced by hoteliers.
Image: Colin Fearing/stock.adobe.com
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