Last week the big brand companies posted strong numbers. IHG reported Americas RevPAR up 6.8% for the third quarter. Wyndham reported U.S. RevPAR up 6% and a record development pipeline of about 264,000 rooms.

Good news for the brands. But here is the part that never makes the headline: a brand's growth is not your return.

Systemwide RevPAR, pipeline size and fee growth measure how the franchisor is doing. They don't tell you whether your hotel, in your market, under your contract, earns an acceptable return on the money you put into it.

That gap matters right now, because the conversion pitches are coming.

Why the conversion calls are coming

The brands are built for growth, and conversions are the fastest way to get it.

  • IHG: a 353,000-room pipeline, equal to about 33% of its existing system, split roughly evenly between new builds and conversions. Its conversion-focused brands include voco, Vignette, Garner and Noted.
  • Wyndham: about 78% of its pipeline is new construction, but only about 35% of those projects have broken ground. Converting existing hotels is the quicker path to new rooms.
  • Fees: Wyndham says its pipeline hotels carry about a 30% FeePAR premium over its existing system.

FeePAR is the fee the franchisor earns per available room. It is the brand's revenue line, not yours. A higher FeePAR is good for the brand. Whether it is good for you depends on what you get back.

If you run an independent hotel, or a branded hotel that is underperforming, expect a well-prepared proposal with impressive projected RevPAR lift. Projected lift is a starting point, not an answer.

The 10 questions to answer before you sign

  1. What incremental demand does the flag actually bring? Rooms and group business you wouldn't get on your own, in your market.
  2. What does loyalty contribute, and what does it cost? Loyalty-driven stays, minus the program fees and reimbursement terms.
  3. What is the full fee load? Brand, reservations, marketing, technology and loyalty assessments added together, as a percentage of revenue.
  4. Will you save on OTA commissions, or just shift channels? Brand.com bookings that replace online travel agency bookings are savings. Bookings that replace your own direct business are not.
  5. What will the PIP and systems conversion really cost? The property improvement plan (PIP), plus the property management system, training and downtime.
  6. What strings come with the incentives? Key money and development incentives often carry clawbacks if you exit early.
  7. How protected is your territory? Area protection terms, and what is already in the brand's pipeline near you.
  8. How do you get out? Contract term, liquidated damages and transfer provisions if you sell.
  9. Can your team actually use what you're paying for? Brand systems only pay off if sales, revenue management and operations activate them.
  10. What does it do to GOP, NOI and your equity return? The only number that settles the question.

Group demand deserves special attention. IHG's group rooms revenue grew 10% in the quarter. Contracted group business builds a base that supports higher rates and banquet revenue, but only when sales, revenue management and operations coordinate inventory, staffing and event execution. A brand can deliver group leads. Your team has to close and execute them.

What to do this quarter

If you're already branded: audit what you're paying for and not using. Loyalty enrollment, group lead response time, digital merchandising and revenue tools are already funded through your fees. Unused, they are just cost.

If you're facing a PIP: separate the mandatory items from the discretionary ones, and put an expected revenue or cost benefit next to each discretionary line.

If you're buying or selling: a newly converted hotel can carry unseasoned revenue assumptions, deferred PIP work or incentive clawbacks. Underwrite them. And an independent hotel with steady, repeatable demand may not need an expensive flag at all.

If your manager and franchisor are different companies: put in writing who owns brand compliance, group lead response, systems adoption and PIP execution. When everyone owns it, nobody does.

The bottom line

Before you renew, convert or reflag, ask for a property-level picture: what the brand will contribute to your hotel, what it will cost you in fees and capital, and what is left at NOI. Systemwide RevPAR and pipeline growth are the brand's scorecard, not yours.

I've worked through a PIP and the renovation behind it. On A Wait Hospitality helps ownership groups and asset managers run this analysis and manage the conversion work, so your team stays focused on the guest. Book a 20-minute call.

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