Marriott's Design Hotels Adds 16 Palisociety Properties to Portfolio

Marriott’s Design Hotels has added 16 Palisociety properties to its collection, marking the largest single portfolio expansion in the brand’s history. The agreement brings more than 1,000 rooms across nine United States destinations into the Marriott distribution network and Bonvoy loyalty program, pushing Design Hotels past 100 properties in the Americas.

Why did Palisociety change its stance on fees?

The economics of joining a major hotel group did not always appeal to Palisociety. When Design Hotels founder Claus Sendlinger initially pitched the idea to Palisociety founder Avi Brosh a few years ago, Brosh stated there was "absolutely no way" he would pay the required fees [2]. According to Skift, scale ultimately changed the math for the independent operator [2]. Palisociety has recently added around 10 hotels to its portfolio, and the current deal features a tailored fee structure alongside à la carte marketing services [2]. By joining the collection, Palisociety secures access to a much larger network while retaining its independence, allowing the company to "be institutional without losing our soul," Brosh told Skift [2].

What does the deal bring to both companies?

For Design Hotels, the 16-property addition accelerates its regional growth. Up from fewer than 50 properties in 2023, the brand is expected to surpass 100 hotels across the Americas this year [2]. For Palisociety, the agreement unlocks Marriott's global distribution channels, including listings on Designhotels.com and Marriott.com, as well as access to the Marriott Bonvoy travel platform in the coming months [1]. Palisociety’s member hotels will also have the option to utilize Design Hotels’ services, which span public relations, sales, digital marketing, web design, and content creation [1].

How do the two brands align?

Both companies focus on boutique, design-led hospitality. Design Hotels, part of Marriott International, operates as a global collection of more than 300 independently owned properties [1]. Palisociety, an independent hotel management company based in Los Angeles, is known for neighborhood-focused hotels that generally feature fewer than 150 rooms [2]. The two publications differ on Palisociety's exact origins: eHotelier reports the company was founded in Los Angeles in 2008, while Skift states it was founded by Brosh in 2007 [1] [2]. Today, Palisociety operates more than 20 hotels, residences, and restaurants under five sub-brands: Palihouse, Palihotel, Le Petit Pali, ARRIVE by Palisociety, and independently branded properties [1]. Stijn Oyen, Managing Director of Design Hotels, noted that Palisociety's independent mindset matches his company's global community, stating that both brands share a belief that great hospitality is personal and distinctive [1].

Which properties are joining the collection?

The 16 hotels joining the Design Hotels portfolio represent over 1,000 total keys across nine U.S. destinations [1]. The properties will join the network in the coming months [1].