Hotel Brand Dilution: The Maddening But Predictable Trend Of Growth Over Quality

Here’s a topic that I’ve written about in passing endlessly, but which I’ve never dedicated a post to, so I think it’s time. Can we just take a moment to talk about the complete collapse of hotel brand standards over the years? What’s going on, what’s driving this change, and how should us consumers adjust our travel planning because of this?

Hotel brands mean very little at this point

Going back many years, hotel brands were rather consistent. When you booked a Grand Hyatt or Sheraton, you sort of knew what you were going to get. That’s not to say that all properties were the same (some hotels may be newly opened, while some might soon be undergoing a renovation), but the idea is that you roughly knew what to expect.

Nowadays that’s simply not the case anymore, and there’s so much inconsistency, even within each brand. The irony is that the number of hotel brands has exploded, so you’d assume that means it’s easier to associate specific hotels with specific properties. For example, in 2000, Hilton had around six hotel brands. Now in 2026, Hilton has nearly 30 hotel brands. Despite that, there’s less consistency within each brand than ever before.

The explanation for this is very simple — ultimately us guests and loyalty program members are not the customers of the major hotel brands, but instead, we’re the product being sold to prospective hotel investors. Hotels are mostly individually owned, and then the hotel groups get a cut on revenue for managing the property, having it in their loyalty ecosystem, etc. More hotels equal more money, essentially.

With major hotel groups being desperate for growth, the reality is that the actual hotel owners are in the driver’s seat. Does the major hotel group want the owner to invest money in aspects of the experience? Well, the owner will just threaten to go with another brand, and then eventually the hotel brand will cave.

The examples of this are endless, but just to give a few examples that come to mind:

• The exclusive Ritz-Carlton Reserve brand, which has long marketed itself as having properties in “remote locations handpicked for their lush, unspoiled landscapes,” is now opening a property in Shanghai
• The Hyatt Centric brand promotes itself as having hotels “at the center of prime destinations,” yet the Hyatt Centric Campestre León is far from the city center, and next to a Walmart and a bunch of fields (thanks to Robert D for flagging this)
• The JW Marriott brand has historically been about offering luxurious, large scale convention hotels, but then it’s also how Marriott’s first 20-tent safari lodge in Africa was branded

Just to give a couple of examples, even among existing Ritz-Carlton Reserve properties, the brand’s Niseko property, Higashiyama, really feels like it was intended to be a limited service hotel when built, and was then rebranded at the last minute.

For that matter, while the Ritz-Carlton Turks & Caicos has beautiful views, does this really look like what you’d expect from a luxury property?

So to sum it up, the explanation for what we’re seeing is very simple — hotel groups want to grow, and there’s a lot of competition for signing contracts with developers, so the hotel brands are willing to be flexible on standards in the name of growth. After all, that’s how they make money, and they’re obviously not worried about losing customers because of this.

It also has to be acknowledge that with interest rates not being particularly low, appetite for newly built properties is limited. As a result, hotel groups are largely relying for conversions for growth, and those are inherently going to be less consistent without major investments.

How I navigate this problem as a consumer

More than ever before, I simply don’t assume that a hotel is of a certain caliber simply because it belongs to a particular hotel group or brand. So while a certain type of branding may get me to look at a hotel in the first place, I increasingly look at all the pictures of the property, read reviews, and try to do my own research, before selecting a hotel. I will add that I have two exceptions to my skepticism.

First, I think there are some really small hotel brands that still very much care about quality over growth. These are largely passion projects that aren’t publicly traded, where it’s all about having a product that they’re proud of.

Now, I have to say, I think there’s sort of a critical mass where that just goes out the window. For example, all the brands I can think of that have such high standards are ones that have fewer than a dozen properties — I’m talking brands like Airelles, Capella, Oetker Hotels, etc.

Second, while the physical quality and amenities do differ greatly across properties at just about all major brands, there are some that consistently do a great job with service, and that’s worth something. For example, among the major hotel groups, Four Seasons is probably the brand with the most consistent service standards.

That’s because they really put a lot of effort into how they manage their hotels and train employees. I imagine that’s largely because they can’t use a loyalty program as a crutch to fill rooms — they need to win business with every stay.

Is every Four Seasons perfect? Of course not! It’s a huge brand. But for a hotel group of its size, I think it does the best job with consistently delivering high quality service.

Bottom line

Hotel brands have become so incredibly inconsistent over the years. The irony is that hotel companies have created so many more brands, so you’d think it would be easier to pick the right branding for a hotel. But it almost feels like the more brands there are, the less consistency there even is within each brand.

A brand all about remote locations? Stick it in the middle of one of the world’s biggest cities! A brand about being in the heart of the action? Put it next to a suburban Walmart and fields. That’s just how things go nowadays…

What do you make of the trend we’ve seen with hotel brand dilution?