Crowded House: Examining AOPs in the Age of Brand Proliferation
SHERIDAN, WYOMING – March 5, 2025 – SHERIDAN, WYOMING – Mar. 5, 2025 — The hospitality industry has become increasingly crowded as brand companies continue expanding through mergers, acquisitions, and organic growth. While this expansion provides hotel owners and consumers with more choices, it also brings an unintended consequence: multiple brands within the same company often share similar room counts, amenities, and price points, leading to internal competition. Despite this overlap, such competition may not necessarily violate the area of protection (AOP) provisions in franchise or management agreements. As a result, hotel owners face potential revenue reductions, raising questions about the effectiveness of AOPs in shielding them from intra-company competition.
The Role and Limitations of AOPs