No Vacancy Live!

1007: Why Sonesta Flattened Its Organization—and What Happens Next


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Building franchise relationships isn't about brand standards — it's about listening, flexibility, and time in the field. That idea sits at the center of this episode of #NoVacancyNews.

I'm in Massachusetts at the global headquarters of Sonesta International Hotels, talking with Phil Hugh, Chief Development Officer.

Phil walks through how stepping into the CDO role pushed him out of the office and onto the road for roughly 60 days, visiting properties, meeting with owners, and seeing firsthand what it actually takes to operate hotels across the economy, midscale, and upscale segments.

What comes through clearly is how Sonesta has changed how it shows up for owners — from flattening its organization to putting real focus behind Americas Best Value Inn, refining its portfolio, and structuring franchise agreements around long-term success instead of short-term wins.

We cover: 🏨: Why Sonesta streamlined its leadership structure 📍: How non-competing brands benefit owners 💰: What the flat-fee model means for profitability 🪧: Why curb appeal and signage still matter 📈: How Sonesta plans to grow heading into 2026 🤝: What owners actually want from a franchisor today

Special thanks to Actabl — Actabl gives you the power to profit. Visit Actabl.com.

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