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Challenged for growth, brands have leaned on partnerships

Marriott, Sonder just one example of industry trend
Sundy Praia, an SLH Hotel, can be booked on Hilton's platforms because of a partnership between the two companies. (Small Luxury Hotels of the World)
Sundy Praia, an SLH Hotel, can be booked on Hilton's platforms because of a partnership between the two companies. (Small Luxury Hotels of the World)
CoStar News
December 8, 2025 | 2:42 P.M.

With an increasing need to grow units and a more challenging construction and development environment for hotels, the phenomenon of hotel brands leaning on strategic partnerships to grow their platforms has only become more prominent in the post-pandemic era.

While Marriott International's recently failed deal with Sonder Holdings has grown to be the most infamous example of this trend, it's far from the only example.

Here's a look at some of the other major deals brands have struck to bolster their numbers.

Hilton

As a company that has long relied on organic growth for its platform, Hilton has been more resistant to acquisitions to intensify growth than many of its peers. But at the same time, the company has struck some strategic partnership deals to flesh out its offerings to guests and particularly Hilton Honors loyalty members.

One of the most prominent examples is the deal with Small Luxury Hotels of the World, which allows Hilton loyalty members to book stays and use points at SLH's luxury properties across the globe. That partnership launched in 2024 and has been touted as a success by both companies.

The companies celebrated adding 500 properties to the Hilton platform in September with owners in SLH's system noting significant growth and Hilton growing its representation of luxury hotels from 35 countries to 90 at that point.

“For our 21-room, Wentworth Mansion, the Hilton partnership has significantly contributed to our financial performance, generating 20% of our total revenue year to date," said Richard Widman, chairman and owner of Wentworth Mansion in Charleston, South Carolina via a news release. "This demonstrates the partnership’s substantial value and ability to attract discerning guests. The partnership with Hilton has exceeded our expectations.“

Similarly in the interest of expanding its presence in a specific segment of travel, Hilton launched a partnership with AutoCamp in early 2024, adding the glamping brand to its overall portfolio. AutoCamp offers travelers high-end Airstream trailers, cabins and tents to experience the outdoors near national parks and other nature-focused destinations.

“We know today’s travelers are craving adventures when planning their next trip, and that’s why we look for innovative and like-minded partners like AutoCamp,” Chris Silcock, president of global brands and commercial services at Hilton, said in the release announcing the deal. “This is the first time a major hospitality brand and outdoor lodging company have come together in this way to create even more choices for travelers while redefining the outdoor hospitality experience.”

Marriott International

While Sonder's collapse has been grabbing most headlines of late, Marriott's most impactful partnership in recent memory has been it's strategic alliance with MGM Resorts International, which opened up options for Marriott Bonvoy members to book on the Las Vegas Strip. The success of that strategic licensing agreement has regularly been touted on earnings calls for both companies since its launch in late 2023.

During an October earnings call, MGM Resorts President and CEO Bill Hornbuckle discussed how the Marriott relationship has been a bright spot during a difficult time for Las Vegas. At that point, MGM officials were projecting 900,000 room nights delivered through the Marriott partnership.

“October is shaping up to be the strongest room-night month ever for forward bookings originating from the Marriott channel,” he said.

Choice Hotels International

Choice Hotels International has been a company that has long relied on partnerships to bolster its loyalty offerings, in particular. Even before the pandemic, the hotel brand company leaned on a strategic alliance with Apple Leisure Group to offer more resort options on its platform, although that deal ended with Hyatt Hotels Corporation's 2021 purchase of Apple Leisure Group.

Currently, Choice has deals with Preferred Hotels & Resorts, Penn National Gaming and Westgate Resorts.

Choice's partnership with Preferred, which bills itself as "the world's largest independent hotel brand" with properties across 80 countries, has spanned roughly two decades and allows Choice Privileges members to book across the latter company's more than 600 hotels, resorts and other offerings.

Choice and Penn began their strategic partnership in early 2021, offering loyalty benefits to Choice loyalty members at Penn's casino resorts across the U.S.

And the Westgate Resorts deal once again supplemented Choice's offering when it started earlier this year, adding 21 leisure resort destinations within its booking platform.

IHG Hotels & Resorts

In 2022, IHG Hotels & Resorts expanded its offering of luxury resorts through a 30-year licensing agreement with Iberostar Beachfront Resorts.

At the time of the deal, IHG officials announced that up to 70 hotels with roughly 24,300 rooms would join their system, while Iberostar retained ownership. That accounted for 3% growth of IHG's overall portfolio.

Keith Barr, CEO of IHG at the time, celebrated the announcement, noting it matched well with consumer demand.

"Guests have told us of their wish for increased choice of resort and all-inclusive destinations within our brand portfolio," he said via news release.

Hyatt

While Hyatt has not been shy about building out its portfolio via acquisitions since selling off billions in owned real estate, the Chicago-based hotel brand company has also been active in forging partnerships to fill in gaps across its portfolio.

Similar to Hilton's AutoCamp partnership, Hyatt allied with Under Canvas to grow its outdoor offerings in 2024. The deal added 13 outdoor resorts to the World of Hyatt loyalty platform.

One strategic partnership for Hyatt actually parlayed into an acquisition was its relationship with Düsseldorf, Germany-based Lindner Hotels AG.

The two companies first signed an exclusive collaboration agreement in late 2022 that added over 30 properties across seven European countries to Hyatt's portfolio. The scope and nature of that relationship changed, though, in mid-2024 when Hyatt purchased the Me and All hotel brand from Lindner with plans to grow it beyond its native Germany.

And after losing MGM as a partner in 2023, Hyatt reestablished a presence in Las Vegas by aligning with The Venetian Resort Las Vegas in late 2024.

“Las Vegas is a perennial favorite for World of Hyatt members and our group business customers are requesting rooms at a higher volume than pre-pandemic due to the world-class entertainment and unique experiences offered by this dynamic destination,” Hyatt's Chief Commercial Officer Mark Vondrasek said in the news release announcing the deal. “The licensing agreement with The Venetian Resort Las Vegas adds 7,000 rooms and 2.25 million square feet of meeting space, inviting Hyatt's loyalty members and valued customers to have even more options to earn and redeem loyalty points when visiting Las Vegas.”

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News | Challenged for growth, brands have leaned on partnerships