Can B-List Brands Compete with Marriott and Hilton?

Introduction: The Rise of the Challenger Brands

While Marriott and Hilton dominate the global hospitality market with their sprawling portfolios and unmatched brand recognition, a wave of mid-tier and B-list hotel brands is quietly transforming the industry. These challenger brands are not household names—yet they are attracting younger, budget-savvy, and experience-driven travelers by rethinking what hospitality means.

Chains like CitizenM, Moxy (a Marriott sub-brand, but operating like a B-list brand), Staypineapple, Selina, and Red Lion Hotels are capitalizing on shifting consumer expectations, emerging travel patterns, and digital disruption. But can these players truly compete head-on with giants like Marriott and Hilton?

This blog takes a fact-based look at how B-list hotel brands stack up against the giants. We’ll explore the dimensions of price competitiveness, guest experience, loyalty programs, market reach, and branding. Spoiler alert: the battleground isn’t just about luxury—it’s about relevance, innovation, and flexibility.

Let’s dive into the metrics and industry insights to evaluate whether B-list hotel brands have a seat at the table—or are just a niche play in a giant’s game.

Price vs. Value: The Competitive Advantage of Affordability

One of the strongest levers for B-list hotel brands is pricing. While Marriott and Hilton offer premium experiences, they come at a premium price. B-list brands, on the other hand, focus on value-driven offerings.

For example, in 2024:

• The average daily rate (ADR) for a Marriott hotel in the U.S. is around $185, while Hilton averages $170.

• By contrast, chains like Red Lion or Selina average $80–$110, depending on location and season.

But lower prices alone don’t make a hotel competitive. What matters is value for money.

According to a recent STR Global report, mid-tier brands that offer clean, tech-enabled rooms, strong Wi-Fi, and flexible booking options scored higher satisfaction ratings among Gen Z and millennial travelers than luxury brands charging 2–3x more.

CitizenM, for instance, provides:

• Smart rooms with tablets

• Contactless check-in

• Stylish, Instagrammable common spaces
  —all for about $120–$140 per night in major cities.

These prices appeal to remote workers, digital nomads, and short-term business travelers who prioritize convenience and aesthetics over traditional luxury.

Key Takeaway:
B-list brands can’t compete dollar-for-dollar with Marriott and Hilton in terms of scale, but by offering competitive pricing paired with targeted value propositions, they carve out profitable niches. In fact, several B-list brands are now outpacing larger competitors in RevPAR (Revenue per Available Room) growth rates in emerging urban markets and secondary cities.

Loyalty Programs: Can Smaller Brands Build Loyalty?

One of the largest moats protecting Marriott and Hilton is their loyalty ecosystem. With over 180 million members in Marriott Bonvoy and 173 million in Hilton Honors, these programs create stickiness by offering perks like free nights, elite status, and point transfers with airlines.

But this strength also reveals a weakness. Many travelers—especially younger ones—feel disillusioned with traditional loyalty programs due to:

• Complex redemption rules

• Devalued points

• Elite tiers that are difficult to reach without frequent stays

Here’s where B-list brands innovate.

Staypineapple’s Pineapple Perks offers guests:

• Complimentary snacks and drinks

• No blackout dates

• Easy-to-earn free nights

Selina’s CoLive loyalty merges hospitality with co-working and co-living, allowing guests to move between global properties while maintaining membership status and workspace access.

Additionally, several mid-tier hotel groups have partnered with third-party loyalty platforms like Stash Hotel Rewards, which lets independent hotels offer competitive points systems without managing them internally.

Research from Oracle Hospitality (2024) shows that:

• 47% of travelers under 35 prefer instant rewards (e.g., free upgrades, food credits) over long-term point accumulation.

• Only 28% of Gen Z travelers care about brand loyalty; they care more about unique experiences and social proof.

Key Insight:
While Marriott and Hilton lock in frequent business travelers, B-list hotel brands are winning over younger, flexible travelers by simplifying perks and emphasizing immediate value. The loyalty game is evolving from points to personalization and experience.

Guest Experience: Are Smaller Brands Doing It Better?

Contrary to the assumption that luxury brands always deliver a superior guest experience, recent data shows that B-list hotels are often outperforming major brands in guest satisfaction, especially in key areas like tech integration, design, and cultural relevance.

Here’s what’s happening:

1. Personalization Over Standardization

Hilton and Marriott pride themselves on standardization. A Courtyard in Texas will look like a Courtyard in Tokyo. But that sameness is increasingly out of touch with travelers seeking local flavor and authenticity.

Brands like Graduate Hotels, which design each property around the spirit of a local university town, provide a sense of place that Marriott’s uniform lobbies can’t match.

2. Design and Technology

B-list hotels often invest more heavily in tech-forward amenities.

• Keyless entry,

• Voice-controlled lights,

• In-room streaming,

• Automated check-in kiosks
  are more common in hotels like YOTEL than in traditional full-service Hilton properties.

3. Social Spaces and Community

Selina and CitizenM emphasize common areas, coworking lounges, and social events, appealing to solo travelers and digital nomads.

Data Point:
According to a 2025 J.D. Power North America Hotel Guest Satisfaction Index, smaller boutique-style brands rated 9% higher on "overall experience" among leisure travelers compared to larger chains.

Conclusion:
While Marriott and Hilton optimize for consistency, B-list brands are leaning into bold, localized, and digital-first experiences, often leading to better guest satisfaction scores. The smaller size allows for greater agility in implementing guest feedback and tech innovations.

Branding and Recognition: The Visibility Gap is Shrinking

One of the biggest obstacles for B-list hotel brands has historically been brand awareness. Hilton and Marriott have near-universal name recognition thanks to decades of marketing, loyalty partnerships, and corporate bookings.

But in the age of digital discovery, the visibility gap is narrowing.

Online Discovery and Social Proof

According to a 2025 Expedia Group study, over 60% of bookings among 18–34-year-olds originate from platforms like Google Hotels, Booking.com, or Instagram—not brand websites.

That levels the playing field.

If a B-list hotel has:

• Strong reviews,

• Engaging visuals,

• And a competitive nightly rate,
  it stands as much chance to be booked as a Marriott property.

Influencer Marketing and UGC

Mid-tier hotels are leveraging user-generated content (UGC) and micro-influencer campaigns to promote properties. Selina, for instance, partners with travel influencers to showcase their lifestyle appeal across global markets.

Unique Positioning

Rather than mimicking luxury, B-list hotels differentiate with themes:

• Zoku focuses on long-stay business travelers with loft-style rooms.

• Graduate Hotels focuses on nostalgia and Americana.

• Sonder promotes flexible apartment-style stays.

This thematic branding resonates strongly with specific customer segments and improves memorability.

Key Statistic:
A 2025 Nielsen consumer insight report noted that 59% of travelers are open to trying new hotel brands if they offer better value or experience—even if they’ve never heard of them before.

Summary:
Brand recognition is still a strength for Hilton and Marriott, but digital platforms and targeted branding strategies allow B-list players to punch above their weight—especially with the right visuals and experience-driven messaging.

Market Expansion and Growth Potential

Let’s face it: Marriott and Hilton have global infrastructure. With thousands of properties across six continents, their sheer scale is unmatched. But that doesn’t mean B-list brands aren’t growing—many are expanding rapidly, just with a different approach.

Franchising and Soft Brands

B-list hotel companies are increasingly using asset-light models, similar to the giants. By offering flexible franchise agreements and soft branding (like Red Lion’s "Signature Inn"), they’re attracting independent hoteliers.

Focus on Emerging Markets

While Hilton and Marriott fight over urban centers and airports, B-list brands are capturing secondary cities, leisure destinations, and hybrid spaces (like co-working hotels in Bali or Lisbon).

Selina, for example, has opened over 150 properties in under a decade across Latin America, Europe, and Southeast Asia—markets where Marriott has little presence.

Niche Market Strategy

Instead of trying to be everything to everyone, many B-list brands are laser-focused:

• Remote work (Zoku, Outsite)

• Adventure travel (Basecamp, Generator)

• Cultural immersion (Casa Cook)

This specialization allows them to grow vertically within their audience base.

Data Insight:
STR’s 2025 market outlook report projects that boutique and lifestyle hotel growth will outpace traditional hotel chains by 3.1% CAGR over the next five years.

Bottom Line:
While Marriott and Hilton expand horizontally, B-list hotel brands are finding room to grow in vertical niches, secondary markets, and flexible formats—which can be more profitable long-term.

Conclusion: Can They Compete—Really?

Let’s cut to the chase. Can B-list hotel brands compete with Marriott and Hilton?

Not on scale. Not today. And likely not in the next decade.

But that’s not the only metric that matters.

When measured in terms of:

• Guest satisfaction

• Tech-enabled experiences

• Pricing and value

• Loyalty innovation

• Market adaptability

—B-list brands are already winning in many categories.

What’s happening is a shift in consumer psychology. Travelers today are more flexible, experience-hungry, and digitally native. They don’t care as much about a global name; they care about a relevant, frictionless, personalized stay.

So while Marriott and Hilton will always dominate corporate bookings and luxury-minded travelers, there is plenty of market share up for grabs. In fact, B-list hotel brands are likely to shape the future of hospitality, especially in lifestyle, remote work, and value-driven travel segments.

In short, yes—B-list brands can compete. And in many ways, they already are.