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

Building franchise relationships isn’t about brand standards — it’s about listening, flexibility, and time in the field.

In this episode of No Vacancy, Glenn Haussman visits Sonesta International Hotels’ global headquarters in Massachusetts to speak with Phil Hugh, Chief Development Officer.

Phil explains how stepping into the CDO role led him to spend roughly 60 days on the road, visiting properties, meeting with owners, and understanding the realities of operating hotel in the economy, midscale, and upscale segments. The conversation covers how Sonesta flattened its organization, is focusing big time on Americas Best Value Inn, refined its portfolio, and designed franchise agreements focusing on long-term success.

Topics include:

• 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 want from a franchisor today

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