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The hotel world has always been where Goliaths strut their marble foyers while Davids quietly ply their trade. But according to the latest U.S. Performance Report from Preferred Hotels & Resorts, David’s been lifting weights. Three years of complex data (2022–2024) confirm that Preferred’s independent hotels are not only holding their own against the global titans but outperforming them — and doing it with panache.

And if you’re wondering whether this is just a puffed-up PR exercise, rest assured: the numbers were crunched by HVS, one of the hospitality industry’s most respected consulting firms. No rose-tinted calculators here.

The Independent Advantage

Michelle Woodley, President of Preferred Hotels & Resorts, did her best to keep it professional, but you could almost hear the grin through the press release.

“The findings reinforce the strategic advantage of affiliating with Preferred Hotels & Resorts, as our performance is not reliant on a single stream, but equally weighted across five key revenue drivers, which include loyalty, marketing, as well as group, leisure and corporate sales.”

In other words: while the mega-brands put all their eggs in one basket, Preferred’s hotels spread their bets — and clean up. Woodley went further: “By harnessing the strength of our global operating scale and a strong balance of performance, we continue to provide our members with a diversified advantage that safeguards revenue streams, drives RevPAR penetration, and delivers exceptional results that consistently outpace competitors, further proving the long-term value of the independent model.”

Translation? Independence doesn’t mean vulnerability. It means resilience.

Follow the Money (and the Occupancy)

The study sorted 98 Preferred-affiliated hotels into three categories: primary markets, secondary/tertiary markets, and resorts. The story was told using STR data on occupancy, ADR (average daily rate), and RevPAR (revenue per available room).

Resorts were the rockstars. Preferred’s resort hotels posted RevPAR indexes between 136% and 139% versus their competitive sets. That’s not just outperforming — that’s lapping them. The magic came from both occupancy and ADR: transient guests happily paying premium rates, while group bookings delivered ADR premiums big enough to make rivals wince.
Primary market hotels did their bit too, chalking RevPAR indexes from 111% to 119%. Here again, ADR was the hero, with occupancy bolstered by the increasingly loyal I Prefer Hotel Rewards brigade. Six million members worldwide now — not bad for a program once dismissed as “nice to have.”
Secondary and tertiary markets also held their ground, with RevPAR indexes between 102% and 107%. There was nothing secondary about those numbers.

And then there’s the clincher: the cost of affiliation with Preferred averages under 1.7% of gross rooms revenue. Compare that with the 11% taken by other luxury and upscale brands. It’s the difference between sipping champagne and settling for sparkling water.

Outshining the Icons

Preferred wasn’t comparing itself to the local motel down the road. The competitive set included the likes of Four Seasons, Ritz-Carlton, St. Regis, and Mandarin Oriental, names that ooze luxury and command sky-high rates. Toss in Leading Hotels of the World and Relais & Châteaux, and you’ve got a line-up that usually leaves independents gasping.

But Preferred’s hotels not only kept pace, they surged ahead. Independence, it turns out, isn’t a liability. It’s a weapon. Armed with Preferred’s marketing reach, loyalty program, and distribution muscle, independents show they can charge premium rates while still attracting loyal guests in droves.

More Than Numbers

Of course, hospitality isn’t just about spreadsheets. What this report really highlights is a shift in traveller preferences. Guests are increasingly drawn to hotels with character, charm, and a sense of place. They’re tired of identikit foyers and cookie-cutter rooms that could be anywhere from Boston to Bangkok. Preferred-affiliated properties offer individuality but with the assurance of a respected global brand behind them.

For owners, the appeal is obvious. Why fork out 11% of your room’s revenue to be told how to arrange your furniture when you can keep your independence, pay a fraction of the cost, and still outperform the big boys?

The Final Word

Hospitality has always been a battleground between independence and conformity. For decades, the big chains won by sheer size. But Preferred’s U.S. Performance Report clarifies that the tide has turned. Independent hotels, far from being quaint survivors, are proving they can deliver better results, higher ADRs, stronger loyalty, and significantly lower costs.

And perhaps most importantly, they’re offering guests what money can’t buy: authenticity.

Preferred has a simple invitation for hotel owners keen to stay independent without feeling alone: www.PreferredHotels.com/join.

The message is clear: independence isn’t just alive. It’s thriving.